Automotive Industry Expected to Improve Profitability in 1994

The Australian automotive industry is poised to improve its profitability in 1994, according to the Automotive Industry Authority. Despite a low base, the industry is expected to reap the benefits of restructuring and rationalization efforts, as well as growing car sales and increased exports. Car sales are expected to improve, with a forecasted three percent increase in 1994, and exports are expected to be stable, with increased exports by Holden and Toyota offsetting lower Mitsubishi sales.

Key Takeaways:

• The Automotive Industry Authority expects profitability to improve in 1994, with a low base.
• Improved profits are crucial for the long-term viability of the industry.
• Car sales are expected to improve, with a forecasted three percent increase in 1994.
• Exports are expected to be stable, with increased exports by Holden and Toyota offsetting lower Mitsubishi sales.
• The industry is poised to reap the benefits of restructuring and rationalization efforts.
• Sales of imported cars are expected to increase during the year, with a higher import share of the market likely in 1994.
• The Ford Laser will switch from local to import sourcing later in the year.
• 1994 will be the first full year in which Nissan will switch from local to imported sourcing.

Statistics:

• A three percent increase in car sales is forecasted for 1994.
• Sales of imported cars are rising strongly compared to the same period in 1993.
• The import share of the market is likely to be higher in 1994 than in 1993.
• Exports are expected to be stable, with a fall in Capri exports offset by increased exports by Holden and Toyota.
• Sales of local product are increasing, but at a slower rate than sales of imported product.

Sources:

• "Annual Report on the Industry" by the Automotive Industry Authority.
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