Industry SnapshotA U T O M O T I V E

Prepared by: Alison Ma August 2017

Discover a World of OpportunityMajor players

Emerging brandsIndustry insights

Current trends Useful facts

IRD’s Industry Snapshot is a resource that we produce to enrich our subscribers’ new business activities.

Our Discovery Team has produced an easy-to-digest industry overview that will quickly get you up to speed with the major and emerging players, current trends and industry insights.

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Major Players (Luxury)

Major Players (High-end)

Major Players (General)

Emerging Players

Emerging players in the market often require business services and products to support their growth. Use IRD’s insights to learn about their requirements and start a relevant conversation with them today.

OpelA German auto brand

just acquired by Groupe PSA from General Motors. It

produces the Astra and Vectra brands, formerly Holden-badged models

TeslaThe world’s first fully electric

automotive company, that also produces solar panels and energy storage products. It produced the

first electric sportscar, the Roadster, in 2008. It is currently establishing its Australian dealership, servicing and charging infrastructure in Australia.

RDM GroupA UK supplier of products to

the auto industry planning an Australian expansion after

opening an office at Flinders University campus early in

2017.

HavalA Chinese specialist maker of

premium SUVs and is the No. 1 SUV brand in China for the past

14 years. It is the world’s 10th

largest SUV manufacturer.SAIC Motor

A Chinese state-owned auto design and manufacturing company. It acquired the MG brand and re-

introduced the brand in Australia in 2017

A trend towards sourcing alternative fuelling methods such as the of hybrid and electric models. This only represents a small segment of total sales; however, it is a category

Industry Insights

Top 10 selling models in 2016*:

1. Toyota Hilux

2. Toyota Corolla

3. Hyundai i30

4. Ford Ranger

5. Mazda3

6. Toyota Camry

7. Holden Commodore

8. Mazda CX-5

9. Mitsubishi Triton

10. Hyundai Tucson

Top 10 brands in 2016*:

*VFACTS figures for December 2016

Rank Brand Market share (%)

1 17.8%

2 10%

3 8.6%

4 8%

5 6.9%

6 6.2%

7 5.7%

8 4.8%

9 4%

10 3.6%

A trend towards sourcing alternative fuelling methods such as the of hybrid and electric models. This only represents a small segment of total sales; however, it is a category

Industry Insights

Auto brand ad spend FY2017*:

Media Type FY2017 ($) % change on previous corresponding period

TV 341,527,374 +0.5%

Digital 230,310,437 +16.9%

Outdoor 81,100,560 +33%

Radio 48,524,156 +1.1%

Newspapers (excluding digital)

30,954,281 -19.6%

Magazines 10,295,353 -9.4%

Cinema 9,698,513 +6%

Other 479,327 -54.6%

Total: 752,890,001 +6.6%

* Standard Media Index (SMI) https://prwire.com.au/pr/71796/australia-s-automotive-brand-advertisers-increase-advertising-expenditure-by-47-million-in-2017-financial-year-smi-data

Current trends

The Automotive industry is moving towards hybrid and electric vehicle production

• Volvo will go all hybrid/electric from 2019

• Tesla’s electric charging station infrastructure expansion across Australia

• BMW partnering with Westfield for an electric car charging initiative.

Paris Climate Accord

• France will ban diesel and petrol cars by 2040 in order to meet Paris agreement targets

and plans to become carbon-neutral by 2050.

• The UK has announced similar measures in reaction to poor air quality across the

country.

More concerted efforts to target female car buyers and minority groups

• Nissan appointing Margot Robbie as brand ambassador

• Renault launching matching nail polish to car colours

• Fiat signing on as launch partner for Elle magazine

• Suzuki sponsoring Netball NZ

• Holden sponsoring the Gay & Lesbian Mardi Gras.

Current trends

Significant investments in technology R&D

• In 2017, Ford opened its Asia Pacific Product Development centre in Broadmeadows. It

plans to increase its spend on R&D in Australia by 50%. It has also opened a ‘Showroom

of the Future’ in Victoria to give customers a digitally-connected retail experience.

• Holden will introduce the OnStar technology package in Australia by 2019.

• Porsche has partnered with Microsoft to develop several projects, involving Microsoft’s

racing franchise Forza.

Key marketing timelines

• The most active period for marketing activity is towards the end of the financial year

(June – October) as automakers attempt to sell off last year’s stock and hold car shows.

Further reading

http://www.acaresearch.com.au/australian-market-research-blog/are-we-reaching-peak-automotive-in-australia-a-review-of-2016-vehicle-saleshttp://performancedrive.com.au/top-10-best-selling-cars-australia-2016-0511/http://www.mckinsey.com/industries/automotive-and-assembly/our-insights/disruptive-trends-that-will-transform-the-auto-industryhttp://www.industryweek.com/strategic-planning-execution/3-trends-will-drive-automotive-industry-2017-and-beyondhttps://www.ibisworld.com.au/industry-trends/market-research-reports/thematic-reports/automotive-industry.html ($1,095 for a single report)https://www.automotiveworld.com/analysis/eight-disruptive-trends-shaping-auto-industry-2030/

http://www.roymorgan.com/findings/7265-new-car-purchase-intention-australia-may-2017-201707121525http://www.roymorgan.com/findings/7195-sotn-27-automotive-roy-morgan-launches-roy-morgan-future-tracker-march-2017-201703311423http://www.roymorgan.com/findings/7196-sotn-27-automotive-roy-morgan-launches-roy-morgan-risk-profiler-march-2017-201703311459http://www.roymorgan.com/findings/7209-sotn-auto-driverless-cars-april-2017-201704061939http://www.roymorgan.com/findings/7208-sotn-automotive-tesla-and-quest-for-zero-emissions-april-2017-201704061900http://www.roymorgan.com/findings/7207-sotn-automotive-car-sharing-april-2017-201704061208http://www.roymorgan.com/findings/7206-sotn-automotive-buying-cars-online-april-2017-201704061153http://www.roymorgan.com/findings/7197-state-of-the-nation-automotive-decade-of-upheaval-march-2017-201703271833

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