Automotive

About the automotive industry

The Australian automotive manufacturing industry comprises firms involved in motor vehicle manufacturing, motor vehicle body and trailer manufacturing, automotive electrical component manufacturing and other motor vehicle parts manufacturing.

In regards to domestic passenger motor vehicle manufacturing, the three passenger motor vehicle producers, Ford, Holden and Toyota, have each announced they will cease manufacturing in Australia over the coming years. Ford will cease manufacturing on 7 October 2016, while Holden and Toyota will cease manufacturing by the end of 2017. Each of the motor vehicle producers have cited the high cost of manufacturing, a highly competitive and fragmented domestic market and changing consumer preferences as reasons for why they will no longer manufacture vehicles in Australia.

Automotive manufacturing statistics

 

2012-13

2013-14

2014-15

Employment

46,877

44,342

40,642

Industry Value Added ($m)

4,722

4,171

3,712

Sales and Service income ($m)

19,726

20,051

17,539

Source: Australian Bureau of Statistics

Government programmes

  • Automotive Transformation Scheme (ATS)
    The ATS is a legislated entitlement scheme which encourages competitive investment and innovation in the automotive industry. The ATS will provide up to $2.5 billion in capped assistance and approximately $337 million in uncapped assistance from 1 January 2011 to 31 December 2020.

    More information is available at business.gov.au
  • Automotive Diversification Programme (ADP)
    A $20 million programme to assist Australian automotive supply chain companies to diversify out of the domestic automotive manufacturing sector and thereby retain manufacturing capability in Australia. ​The ADP is one element of the Growth Fund. Refer below for more information on the Growth Fund.

    More information is available at business.gov.au
  • Automotive Industry Structural Adjustment Programme (AISAP)
    AISAP provides labour adjustment funding for training and assistance to displaced automotive workers.

    More information is available at employment.gov.au

Other information/reports

  • Productivity Commission's Report on Australia's Automotive Manufacturing Industry - Government's Response
    In October 2013, the Australian Government asked the Productivity Commission to undertake an inquiry into public support for Australia's automotive manufacturing industry, including passenger motor vehicle and automotive component production. On 26 August 2014, the Productivity Commission's final report was tabled and the Government's response |  was released.
  • Australian Government Economic Review of South Australia and Victoria
    Following the announced departure of Holden and Ford, the Australian Government conducted reviews of the South Australian and Victorian economies to inform the development of a growth fund to support economically responsible initiatives in regions facing pressure in their manufacturing sectors. On 30 April 2014, the Australian Government announced a $155 million Growth Fund to help industry adjust to the end of car manufacturing in Australia by 2017. The Report of the reviews, Growing Opportunities: South Australian and Victorian Comparative Advantages, has been released. More information on the Growth Fund and the Report of the reviews is available.
  • Senate Inquiry into the Future of Australia’s Automotive Industry
    On 25 November 2014, the Senate referred an inquiry on the future of Australia’s automotive industry to the Senate Economics References Committee. The report was released on 1 December 2015.

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