This submission follows an earlier interim submission that focused on domestic motor vehicle manufacturing in Australia. Consequently, this submission seeks to address the remaining issues canvassed by the Inquiry’s Terms of Reference that are relevant to FCAI members.
The Australian automotive industry makes a significant contribution to the Australian economy, in each of its various guises. It is a $74 billion retail industry, selling 1.1 million new motor vehicles each year through more than 4,700 businesses. The industry contributes $6.4 billion in taxes and other charges to Government revenue each year.
The research and product development undertaken in Australia contributes to global projects and is highly prized internationally. These projects earn significant export income for Australia. Future technological change, already in development here and overseas, provides a further opportunity to take the domestic industry in a new direction, and offers the prospect of new participants entering the automotive sector.
To realise the potential requires a combination of immediate and short-term responses as well as the development of a shared vision by industry and government of what Australia’s advanced automotive industry can become. Crucial to this is recognising that motor vehicles are becoming more sophisticated and connected to the world in which they operate.