Australia’s Car Manufacturing Industry

| August 16, 2013 | 0 Comments

1951-1953_Holden_50-2106_01 (1)Australia is one of the more known countries that manufacture cars from scratch. Traditionally, Australian car manufacturers produce large sized passenger vehicles. In the past years, the car industry accounts for a large amount of the country’s profits. The three large scale manufacturers are Ford Australia, Holden, and Toyota. Written below is a brief overview of the car-making industry in Australia and its status in the past few years.

Chris Keating from Melbourne, Australia

Role of the car manufacturing industry
• Australia’s car manufacturing industry is considered as a significant automotive industry worldwide.
• More than a hundred firms that operate and produce outputs related to the car-making industry exist in Australia. These firms range from design, engineering and component and tooling firms.
• Their automotive industry is a major export industry. They export their cars worldwide. A majority of its outputs is exported to the Middle East. Three types of the most commonly produced cars are the passenger motor vehicles, light vehicles and commercial vehicles such as trucks.
• A huge chunk of employment in Australia relies on the car manufacturing industry.
• This industry contributed to the country’s Research and Development which in effect resulted in a benefit in the country’s economy.

Dwindling of the Automotive Industry
Many factors have affected the manufacturing industry of Australia for the past years. This has caused a weakening that resulted in cutting of labor and a lower percentage of profit. Some of the factors that contributed to this are:
• The car models and design are traditionally larger in size but nowadays, it has become a trend for people to purchase smaller cars which are generally more fuel-efficient. This trend has impacted the industry and received a turnout of lower domestic consumption. People lean towards buying cars from other cars which suit their taste and preferences.
• Another factor is because of the strong dollar. This forced manufacturing companies to cut down on their production. High dollar coupled with cheap costs of labour overseas triggered the decline more.
• Another factor pointed out is the high energy costs of producing cars in Australia. This results to lower the number of outputs and in effect makes the cars more expensive than other brands from other countries.
• The market in Australia is relatively small in comparison with its competitors from other countries. Aside from this, their domestic market also prefers the smaller cars which are imported from other countries.

Though the decline has been continuous, the manufacturing industry points out that there are still ways on how to manage the loss experienced by companies. The main one is to change and restructure the designs and models of cars produced in Australia. Manufacturing industries have to cope up with the trends as customer satisfaction and interests are important.

People tend to buy cars from either Japan or Korea, not just because they are smaller in size, but also because they have constructed their cars to the market’s preference and so consumers buy what they think are better. Also accounted is the price. Because of the mass production of other countries, they tend to offer cars of lower prices. Either mass production being considered or the reconstruction of models will help in reviving the dwindling automotive industry of Australia because it is already an obvious fact that it is part of the global market which offers a wide variety of products of different qualities and prices and therefore, adjustments are vital for the industry’s survival.

Category: Australia

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