Contact: Matt Hobbs, MTAA CEO
Email: matt.hobbs@mtaa.com.au
Tel: 03 9829 1250
Mobile: 0419 608 845
Postal: 650 Victoria Street, North Melbourne VIC 3051
Growth in the passenger and car rental industry is due to higher domestic and international tourist numbers. Increased tourism activity has been fueled by the weakened Australian dollar and growing wealth in Asia. Competition within the sector is high as consumers’ access price comparison websites. (Source: McGregor, W. IBISworld. Aug 2017)
Despite the volatility of crude oil prices, profitability within the fuel retailing sector is continuing. Diesel sales are increasing but petrol is the highest seller. Industry ownership is fluid as fuel retail outlets are being sold by petrol companies to supermarket chains. Profitability may be impacted as consumers adopt vehicles with alternative drive trains (i.e. electric powered). This is offset by the growing numbers of Australian registered vehicles requiring fossil fuels. (Source: Magner, L. IBISWorld. Feb 2017)
The tyre retailing industry is benefiting from the ever increasing number of vehicles on Australian roads. However, trends show that people are driving less and there are often longer periods between tyre replacements. There is also an influx of cheaper Chinese made tyres in the Australian market which often reduces the profit margins for tyre retailers. (Source: Johnson, S. IBISworld, Dec 2016)
Revenue for motorcycle dealers has stalled. Motorcycle sales are limited by the discretionary incomes of consumers and the diminishing recreational and leisure time available for riding. The used motorcycle market also limits the sales of new motorcycles. Demand for smaller cheaper motorcycles to be used as a substitute for less fuel efficient cars is increasing. This is regardless of the greater affordability of smaller, cheaper and more fuel efficient cars. (Source: Wu,T. IBISworld. Jun 2017)
Revenue for the motor vehicle dismantlers and used part wholesalers is being reduced due to safer, affordable new vehicles with crash avoidance and driver assistance technology. However, demand is being sustained due to increased dismantling and recycling of an ever growing and younger national car fleet. (Source: Burgio-Ficca, C. IBISworld, Sep 2016)