Toyota, Ford and Mitsubishi Work on Model Development, GM and Ford Produce New Types of Engine

July 1, 2002 No.082

Toyota, Ford and Mitsubishi Work on Model Development, GM and Ford Produce New Types of Engine
Four Auto Makers Advance Towards Creating Export Bases in Australia

GM-Holden, Ford, Toyota and Mitsubishi currently produce automobiles in Australia. In recent years, production volume has ranged from 330,000 to 350,000 units. In the mid-90's, GM and Ford both had production volumes of approx. 100,000 units; Toyota and Mitsubishi had production volume in the 100,000 unit range. However, Toyota is closing in on the 100,000 unit level and Ford has dropped to third place, due to its stagnant new model sales. Mitsubishi production has not surpassed 40,000 units.

Toyota's production expansion has greatly benefited from its use of Australia as an export base for the Camry, primarily destined for the Middle East. The other three companies, by shifting their export base to Australia for special models or engines, are moving towards strengthening their operations. Because of this, government policy support is also having an effect; and even though the absolute scale of these operations is small, the companies are strengthening development functions and production capabilities.

On the other hand, the Australian new car market has grown from 650,000 units in the mid-90's to 800,000 units between 1998 and 2000. However this market expansion has not been met by domestic production, and imported cars account for over half the market. The diversified and import centered domestic automobile market and the growing special-export sector are two characteristics of the emerging automobile production industry in Australia.

Overview of Australian Automotive Industry

	1995	1996	1997	1998	1999	2000	2001
Production (units)	335,695	332,778	347,448	367,706	329,172	348,270
New Registration (units)	642,525	648,996	722,427	807,669	786,845	787,100	722,681
Export (units)						89,783	107,199
CBU Export (million USD)	457	759	899	785	1,098	1,349	1,610
CBU Import (million USD)	4,555	4,673	5,244	5,460	5,903	5,929	5,590
Parts Export (million AUD)		457	560	541	652	816	917
Parts Import (million AUD)		1,657	1,811	2,177	2,224	2,683	2,270

Source:	Production and New registration based on Australia Automotive Industry Association, Ward's Automotive Yearbook. Exports are total of 4 manufacturers in Australia. Monetary value of export and import is based on World Trade Atlas.
Note 1.	Import was 455,384 in 2000 (World Trade Atlas).

Australian Vehicle Production by Manufacturer

(units)

	1995	1996	1997	1998	1999	2000
GM-Holden Passenger Cars Commercial Vehicles	114,268 107,338 6,930	102,268 93,582 9,142	91,966 82,826 9,140	123,195 110,538 12,657	103,048 92,270 10,778	130,507 124,534 5,973
Ford Passenger Cars Commercial Vehicles	110,250 102,079 8,171	108,006 98,768 9,238	115,994 107,024 8,970	89,827 79,571 10,256	93,883 83,882 10,001	85,832 70,532 15,300
Toyota (Passenger Cars)	63,234	67,721	77,628	99,875	91,005	92,299
Mitsubishi (Passenger Cars)	39,727	48,376	58,479	46,937	34,570	36,284
Others	8,216	3,951	3,381	3,872	666	0
Total Passenger Cars Commercial Vehicles	335,695 312,378 23,317	332,778 310,447 22,331	347,448 325,957 21,491	362,706 335,921 26,785	329,172 301,727 27,445	348,270 323,649 24,621

Source:

Australia Automotive Industry Association, etc.

The State of the Four Automakers' Production in Australia

GM-Holden	Produces the Caprice, Statesman, Calais and Commodore, and exports engine units to countries like Egypt, India, and Korea. In the past several years, it has battled with Toyota for the top sales position in Australia. Toyota held that position in 2000, but GM-Holden took back the top position with a record 165,579 cars sold in 2001. The GM-Holden Commodore held its bestseller position in Australia for six years running as it sold 102,113 units. (2001's number two seller was the Ford Falcon with 72,994 units sold.) Track record: Recently it has secured an after-tax profit to sales ratio of 5%. (Previous figures not available)
Ford	Previously battling with GM and Toyota for the top position, Ford reached the number one position between 1996 and 1997 in production and sales. Every year since 1998 has seen a production and sales drop due to the model change in that year focused on the Falcon, whose sales have been suppressed by sales of the GM-Holden Commodore. In 2001, Ford had sales of 106,730 units, meaning that the gap has grown between it and GM-Holden with 165,579 units and Ford with 106,730 units. Track record: Has continued to post profits since 1994, with 1999 seeing $82 million Australian in profits. This, however, fell in 2000 to losses of $16 million Australian due to diminishing sales and the depreciation of the Australian dollar.
Toyota	Toyota is vying with GM for the new car sales record. In 2000 Toyota took first place in sales, but GM with 166,000 units pushed Toyota to second place at 141,000 units in 2001. Toyota produces two car models, the Camry and the Avalon in Australia. It has a local procurement ratio of 70% but is striving to up that rate and increase price competitiveness. Track record: Toyota Australia secured profits in 1998 to 1999, but posted losses of $6.3 million Australian (approx. 4.6 billion yen) in 2000. Losses also increased somewhat in 2001. Middle East-focused exports are continuing smoothly, reaching 59,200 units, which is above the goal of 50,000 units. However, due to the depreciation of the Australian dollar, importing car parts from Japan has caused the cost of cars like the Corolla to increase.
Mitsubishi	Mitsubishi produces the passenger car Magna (called the Diamante in Japan) as well as engine parts in Australia. It posted losses in 1999 and 2000, and due to the worsening performance of Mitsubishi headquarters, there were predictions that the plants in Australia would be closed. However, in November 2000, Mitsubishi invested an additional 172.4 million and raised its share holding ratio from 60% to 88%. Track record: In 2001, Mitsubishi Australia posted profits, a turnaround from two consecutive fiscal years of losses. Sales reached $25.8 million Australian (up from the previous year's sales of $24.71 million). After-tax profits were $16.1 million Australian. Production increases (from 43,000 units to 49,000 units ) and cost-cutting measures, such as personnel decreases, contributed to these results.

Source:

Corporate Public Data, Ward's Automotive Reports, Newspaper Media.

Imports account for almost 60% of the 700,000 to 800,000 unit new car market

New car registrations have risen in the last five years from 720,000 to 810,000 units. The four makers engaged in domestic production have secured top position. In 2000, including sales of imported cars by the four, the imported car ratio accounts for almost 60%.

Among the Top 10 models of new, registered cars, the domestically produced GM Commodore and the Ford Falcon are unrivalled. However, the inexpensively priced imports: Toyota Corolla, Hyundai Excel, Nissan Pulsar and Ford Festiva are still among the Top 10. The 10,000 units of CR-V's and 8,000 units of Civics sold domestically, lay at the heart of Honda's sales. However, it plans to export the Fit from Japan.

New Registration by Manufacturer (Passenger Cars/Commercial Vehicles)

(units)

	1995	1996	1997	1998	1999	2000	2001
Toyota GM-Holden Ford	119,425 122,973 137,862	121,209 124,229 132,205	126,046 123,437 130,215	158,290 153,589 128,814	153,059 155,307 126,897	158,908 155,137 113,810	141,282 165,579 106,730
Mitsubishi Nissan Hyundai	65,078 24,497 34,932	61,079 25,579 48,871	82,285 32,931 59,798	84,142 45,719 57,219	69,923 48,385 47,133	73,241 45,867 45,331	67,757 n.a. n.a.
Honda Mazda Subaru	14,012 28,151 7,910	16,201 26,890 8,464	17,518 30,977 14,282	25,571 27,080 20,445	28,517 26,690 25,164	30,034 27,505 26,647	n.a. n.a. n.a.
Daewoo Others	11,433 76,252	12,960 71,309	16,509 88,429	21,772 85,028	21,517 84,253	20,514 90,106	n.a. n.a.
Total	642,525	648,996	722,427	807,669	786,845	787,100	722,681

Source:

Ward's Automotive Yearbook

New Registration of Top 10 Models in Australia

(units)

		1997	1998	1999	2000
GM	Commodore	85,519	107,514	98,899	96,341
Ford	Falcon Festiva	84,684 15,298	79,818 20,170	85,767 17,197	77,234 9,686
Toyota	Camry/Vienta Corolla Land Cruiser Hilux (Pick-up)	30,890 22,319 23,978 17,354	42,031 25,079 29,894 16,701	42,522 28,387 26,710 22,093	33,334 30,576 25,057 21,509
Mitsubishi	Magna/Verada	41,008	35,844	28,239	26,271
Hyundai	Excel/Accent	38,489	44,018	32,486	29,675
Nissan	Pulsar	14,114	19,835	22,591	21,740

Source:

Ward's Automotive Yearbook

Sixty percent of imports are from Japan, but South African and Thai imports are on the upsurge

During the 1980's Australia shifted its policies from protecting domestic industry to heightening international competition. Starting in 1988, it gradually reduced tariffs on finished automobiles. The tariff will stay at 15% between 2000 and 2004. As a result, imports of finished vehicles have increased to 455,384 units in 2000, totaling US$4.518 billion. By country, 60% of the import market is dominated by Japan, both in terms of units and monetary value. Next come Germany, Korea and the UK. However, in recent years, South African imports have risen sharply and Thai imports have also been on the rise.

The Lowering of Automobile Tariffs in Australia

Australia, a land blessed with rich geological and agricultural resources, holds a strong comparative advantage in international trade. However, measures were taken to protect domestic industrial production due to the lack of a competitive edge because of various factors, including a small domestic market for manufacturing industries and the high costs of shipping over the vast continent. But the Australian government enhanced the competitive power of its manufacturing industry in the 1980's and shifted its policies towards promoting exports. The Buttom Plan was announced in 1984 to strengthen Australia's international competitive power through corporate restructuring, a decrease in the number of production models, and the establishment of minimum production scales by car model. Starting in 1988, tariffs were lowered and import quotas were thrown out. It was announced in 1991 that the then 35% tariffs on passenger car imports would be gradually lowered by 2.5% each year. Subsequently Nissan Motors stopped all production and pulled out of Australia in the same year. Import tariffs between 2000 and 2004 are currently at 15% but it has been announced that they will be reduced to 10% in 2005. In December 1997, Prime Minister Howard announced an industrial policy vision entitled "Investment Towards Development," which aims for annual economic growth of 4% and above until 2010. More specific policies encompass support for a technical revolution, promotion of investment in Australia and promotion of export. Towards receiving new investments from the automobile makers, the federal government is offering $2 billion (Australian) in aid and the state governments are offering interest-free financial support.

Source:

Sydney Chamber of Commerce of Japan "Overview of Australia"

Import of Passenger Cars by Country in 2000

(units)

Country		Import
1	Japan	275,878
2	Korea	78,579
3	Germany	41,471
4	USA	14,332
5	UK	7,788

Country		Import
6	Spain	7,047
7	South Africa	6,683
8	Austria	4,153
9	Malaysia	2,754
10	Mexico	2,598

Country		Import
11	Belgium	2,587
12	Italy	2,446
13	Sweden	2,362
14	Thailand	2,179
15	France	2,149
Total		455,384

Source: World Trade Atlas

Australia's Automobile Imports by Country

(1,000 USD)

	1995	1996	1997	1998	1999	2000	2001
Japan Germany	1,656,718 463,019	1,475,616 422,716	2,007,740 485,541	2,245,787 574,340	2,524,845 618,345	2,715,058 554,969	2,506,593 708,666
South Korea United Kingdom	397,640 216,062	594,904 223,732	629,072 211,094	513,231 184,934	422,544 165,187	450,886 150,437	331,837 205,594
United States South Africa	112,195 8,467	248,691 7,431	209,722 39,396	198,858 56,024	169,156 81,293	185,097 117,307	181,036 163,553
France Spain	23,274 97,771	16,399 69,360	25,002 45,951	39,211 61,778	28,880 43,545	20,190 35,059	68,907 57,586
Sweden Thailand	72,439 3	49,157 284	58,934 43	53,220 5,448	60,416 59,873	43,484 31,706	55,677 44,149
Passenger Cars Commercial Vehicles	3,206,576 1,348,629	3,324,927 1,348,210	3,919,791 1,324,697	4,119,155 1,341,150	4,382,901 1,519,778	4,517,634 1,411,501	4,477,499 1,112,068
Total	4,555,205	4,673,137	5,244,488	5,460,305	5,902,679	5,929,135	5,589,567

Source:

World Trade Atlas

Automobile exports become Australia's largest industrial exported good

With the high automobile ownership ratio of 1 car for every 1.55 persons, Australia's new car demand is not expected to grow, and the domestic car manufacturers are focusing their energies on exports. Automobile exports have grown by four fold in the past 8 years. In 2001, exports surpassed the 100,000 unit marker. Exports to the Middle East have grown rapidly with Saudi Arabia becoming the largest export destination since 1999. In 2001, car exports reached $16.1 million (US) and followed the exports of coal, crude oil, non-monetary gold, iron ore and wool to become the largest industrially manufactured exported good.

Toyota, the maker of the Camry and the Avalon made Australia the exporting base of its Camry model. In 2001 of the 94,000 cars produced 59,200 of them, or 63% were exported to mainly countries in the Middle East like Saudi Arabia and the United Arab Emirates as well as to the United States and New Zealand.

Australia's Automobile Exports by Country

(1,000 USD)

	1995	1996	1997	1998	1999	2000	2001
Saudi Arabia United States	0 13,375	21,152 164,713	11,791 313,601	25,981 104,338	304,223 160,386	512,184 210,719	707,725 303,571
New Zealand United Arab Emirates	243,034 1	290,867 50,023	156,235 170,199	183,613 222,763	223,380 80,929	174,451 100,771	185,983 106,267
Kuwait Oman	0 0	977 14,347	380 31,460	26,915 29,620	85,244 21,029	79,125 28,446	95,659 36,507
Indonesia Qatar	3,067 0	4,725 392	6,563 0	4,385 8,941	14,510 13,936	50,122 19,610	34,612 21,473
South Africa Bahrain	8,863 -	45,108 9,087	17,628 33,386	7,845 31,653	11,220 12,914	614 14,258	15,219 14,619
Passenger Cars Commercial Vehicles	391,660 65,378	696,661 61,910	811,464 87,161	727,644 57,310	1,039,818 58,099	1,299,937 48,692	1,567,613 42,130
Total	457,038	758,571	898,625	784,954	1,097,917	1,348,629	1,609,743

Source:

World Trade Atlas

GM and Ford plan to produce new types of engines; Toyota, Ford and Mitsubishi will invest more in model development

The four local automakers, while increasing exports, dominate 60 percent of the Australian market including imports. However, in the last three years, Mitsubishi suffered from losses in 1999, followed by Ford, Toyota and Mitsubishi in 2000 and then Toyota again in 2001. In 2001 Toyota was top in terms of sales and exports; its losses were attributed to the fact that despite its growing export market, the high cost (due to the depreciating Australian dollar) of importing parts and finished Corolla cars from Japan could not be covered.

Toyota has announced a plan to increase the local procurement ratio in order to avoid foreign exchange risks and to stop exporting Corollas from Japan (to Australia), and instead export them from South Africa. In line with this move, Camry production will be transferred and concentrated in Australia, and South Africa will be the recipient of car exports from Australia. The next model Camry scheduled for release in autumn 2002 will undergo development and a model change in Australia with its enhanced characteristics as a concentrated production base. Production capacity will also be increased.

The Australian government is prepared to provide $2 billion (Australian) in aid to new investment by the automakers in hopes that they will provide jobs and promote exports. Mitsubishi has decided to invest 60 billion yen to develop and produce, after 2005, the next model Magna in Australia on the condition that they receive $85 million (Australian) in aid from the government. It is also expected that similar conditional aid packages will be provided to Toyota for the Camry's model change and Ford's development of the new 4WD slated for release in 2004.

In line with the effect of these policies the four automakers are announcing business plans linked with raising the local procurement rate and increasing exports. Specifically, GM and Ford with their new engine production plans and Toyota, Ford and Mitsubishi with their model development plans.

The Business Plans of the Four Automakers in Australia

	Export Results/Estimated (in units)	Plans for Production, Development and Export
Toyota	2000(Results) 45,600 2001(Results) 59,200	- To further increase the current 70% local procurement rate and raise price competitiveness - As of several years ago the Australian plant has become the base of Camry exports to the Middle East. In the autumn of 2002, the Camry will undergo a model change at the Australian plant. Total investment of $321 million (Australian). - To optimize production on a global scale and avoid currency exchange risks (the depreciation of the Australian dollar) during 2002, the following moves will be taken: In the summer of 2002, Corolla exports from Japan to Australia will cease; instead they will be exported from South Africa. Every year 50,000 Corollas will be produced in South Africa, of which 30,000 will be exported to Australia. Furthermore, all of the Camry production in Australia and South Africa will be concentrated completely in Australia. As a result, Camry's will be exported to South Africa. To that end, when the new model Camry is introduced in autumn of 2002, annual production capacity will be increased from 100,000 units to 115,000 units.
GM-Holden	2000(Results) 29,183 2001(Results) 28,784 2002(Est.) 35,000 2005(Est.) 50,000	- To increase exports of the Commodore. Production capacity will be increased to achieve this goal. - GM-Holden announced that it would build a plant to produce new V6 engines at the start of 2001. It also announced that it would start to produce a new type 8-cylinder engine there by 2003. These are measures meant to raise the local procurement ratio. - There are preparations underway to export to the US 20,000 units a year of the Monaro, the successor car to the Pontiac GTO. The Monaro is produced in Australia. There are several designs changes that are needed to meet US crash safety standards. - To increase exports to Saudi Arabia and other Middle Eastern countries.
Mitsubishi	2000(Results) 10,000 2001(Results) 19,215 2002(Est.) 22,000	- 17,000 of the 19,215 cars exported from Australia in 2001 were sent to the US, and because this Australia is viewed as the exporting base to the US. - Mitsubishi has decided to go ahead with the development and production of the next model of the Magna to be released in 2005, in Australian plants. It will invest 60 billion yen. It was announced that Mitsubishi has applied to receive $140 million (Australian) in aid from the federal government, the receipt of which is a condition for its producing the new Magna in Australia. Finally, it was decided that Mitsubishi was to receive 60% of the requested amount of aid, or $85 million, from the federal and South Australian governments. - To increase exports to Saudi Arabia, the United Arab Emirates as well as other Middle Eastern countries.
Ford	2000(Results) 5,000	- Ford Australia has announced plans to develop a new type of 4WD vehicle to hit the markets in 2004. Total amount of investment is $500 million (Australian). - The release of the new Falcon is slated for 2005. - There are plans to increase the production capacity of the Victoria plant and produce 30,000 units annually of the new six-cylinder engines. One third of these will be installed in new-model Falcons and the remainder will be shipped starting in 2004.

Source:

Mitsubishi Release (Apr. 2002), Ward's Automotive Reports, Automotive News, Others

Important Recent Trends Among Australian Parts Suppliers

ARACO	Araco plans to advance into Australia. This is a result of Toyota's sounding out the idea for it to move into Australia to take on sub-contracted production of seats, which Toyota currently produces in-house. The move will help Toyota gain a competitive edge in terms of quality and cost. Araco is examining the idea of moving into Australia in a joint venture with JCI (Johnson Controls Inc.) Araco and JCI are currently engaged in joint ventures in the U.S. and Slovakia (Chubu Keizai Shimbun, September 3, 2001).
Daimler Chrysler	DaimlerChrysler acquired 30% of the shares in the Australian parts developer, Bishop Technology Group. With annual sales of $45 million Australian (about 3.3 billion yen), the company develops automobile parts and technology, centering on steering and offers the technology to automobile parts suppliers in Japan, the US and Europe. (Nikkei Sangyo Shimbun, September 28, 2001).
DELPHI	At the beginning of 2002 Delphi will build its second plant in Australia. The amount invested is $13 million (about 1.6 billion yen). Operations will start in August 2002, with the production of plastic fuel tanks and canisters, etc.. This will double Delphi's Australian production. (Nikkan Kogyo Shimbun, September 29, 2001)
DENSO	After 2003, Denso will overhaul its production system in Australia and liquidize its company there. With no expectations of a production rise above 300,000 units annually in Australia, this is a rationalization measure. Authority for meter production will be transferred to Australian Automotive Air, which produces car air conditioning systems within Denso Group. All production of cables will also shift to locally capitalized companies during 2002. Meter production capacity was at 120,000 units and cables at 2 million. (Nikkei Sangyou Shimbun (November 11, 2001)
Pacifica	Pacifica has concluded a supply contract with the subsidiary of Bosch in the US. The products to be supplied are the brake calipers being produced in the Pacifica US plants which are currently being used in 60% of all GM cars. However, these brake calipers are also expected to be used in Ford, DaimlerChrysler, BMW and Nissan cars in the future. The Managing Director, J. MacKenzie states that production capacity in its US plants has doubled in three to four years and the same production increases can also be expected of the Melbourne plant. (Autoasia September 27, 2001).
ACL	In January 2001, ACL announced a joint venture with the German Mahle to build a new engine parts plant in Melbourne. Mahle ACL will carry on the piston and piston ring operations that ACL engaged in formerly. The new factory will supply parts for GM-Holden's new Ecotech V6 engine, which will be produced for export starting in 2003. (Autoasia, December 17, 2001).

Imports of automobile components level off, exports double over 5 years

Australian automobile part imports have remained at over $2.2 billion (Australian) for the past four years while production volume of finished vehicles has stabilized at between 330,000 and 350,000 units. Gear boxes make up a high proportion of the items, and most imports are from Japan, the US, Germany and Taiwan (in descending order). However, Chinese imports have been growing in number substantially.

Relations with ASEAN countries are still quite limited, with the main items being road wheels from Thailand and automotive wire sets from Indonesia and the Philippines.

Automotive Parts Import by Country (HS CODE=8708 Items)

(1,000 AUD)

	1996	1997	1998	1999	2000	2001
Japan USA Germany	679,169 431,154 195,572	827,140 424,823 193,682	880,394 540,864 180,864	954,939 475,826 173,820	1,242,969 598,661 166,831	865,854 534,805 138,958
Taiwan Sweden Italy	31,083 45,896 43,684	34,425 47,254 38,933	36,810 41,560 50,856	44,664 44,696 51,458	48,080 52,199 46,329	53,721 48,751 48,493
UK China Mexico	34,201 7,719 448	36,832 10,535 1,256	51,099 15,108 3,843	50,996 28,124 8,663	53,308 34,565 18,269	47,286 44,542 29,178
Thailand Malaysia Indonesia Philippines	2,528 3,673 7,956 1,578	3,590 4,150 7,974 1,856	6,196 5,820 7,873 1,736	12,314 6,178 6,903 1,288	15,888 6,773 5,494 1,092	21,067 10,411 6,934 1,573
ASEAN 4	15,735	17,570	21,625	26,683	29,247	39,985
Others	32,054	36,449	181,580	200,165	206,042	228,687
Total	1,516,715	1,668,899	2,004,603	2,060,034	2,496,500	2,080,260

Automotive Wire set (HS=854430) Import by Country

	1996	1997	1998	1999	2000	2001
Samoa Indonesia	59,089 3,033	53,854 14,808	53,850 27,374	56,800 25,173	65,324 35,336	89,438 44,416
Philippines Others	53,164 24,878	43,071 30,121	42,987 47,625	41,689 40,517	44,915 40,570	28,863 27,515
Total	140,164	141,854	171,836	164,179	186,145	190,232

Source:

World Trade Atlas

Australia's Automotive Parts Imports by Item/Country in 2001

(1,000 AUD)

	Gear box 870840	Parts/Acc 870829	Brake 870839	Road wheel 870870	Others	Total 8708	Automotive Wire set 854430	8708Total and Wire set
Japan USA Germany	229,417 212,724 8,177	151,995 31,319 28,189	52,784 34,087 9,955	6,312 13,155 6,536	425,346 243,520 86,101	865,854 534,805 138,958	7,030 7,569 3,851	872,884 542,374 142,809
Taiwan Sweden Italy	41 5,854 182	8,990 4,490 7,848	4,065 6,832 2,218	14,862 1,432 2,899	25,763 30,143 35,346	53,721 48,751 48,493	673 461 67	54,394 49,212 48,560
UK China New Zealand	445 14,717 13	6,880 2,986 6,585	2,485 3,844 252	1,268 8,154 3,839	36,208 14,841 27,545	47,286 44,542 38,234	894 227 168	48,180 44,769 38,402
Korea Mexico	782 20,347	9,557 842	1,959 5	1,901 21	22,290 7,963	36,489 29,178	1,627 240	38,116 29,418
Indonesia Philippines Thailand Malaysia	7 49 16	9 52 2,809 2,001	33 94 1,125	1,890 12,609 3,265	4,995 1,521 5,506 4,004	6,934 1,573 21,067 10,411	44,416 28,863 6 12	51,350 30,436 21,073 10,423
ASEAN 4	72	4,871	1,252	17,764	16,026	39,985	73,297	113,282
Others	7,987	15,229	8,549	24,802	97,397	153,964	94,128	248,092
Total	500,758	279,781	128,287	102,945	1,068,489	2,080,260	190,232	2,270,492

Source:

World Trade Atlas

Automotive parts exports from Australia have doubled in the past five years to the 2001 total of $9.17 million (Australian) but have not increased as much as finished car exports (which increased fourfold). The export destinations of the US, Korea and New Zealand account for 62% of the market. Brake parts are the focus of exports to the US, while gear boxes and seat belts are primarily exported to Korea. Exports to Korea have increased fourfold, compared to 1997 levels.

Australia's Automotive Parts Exports by Country (HS=8708)

(1,000 AUD)

	1996	1997	1998	1999	2000	2001
USA Korea New Zealand	114,551 29,017 88,730	174,289 46,984 78,614	219,130 17,474 73,585	284,369 71,624 71,263	321,599 140,613 70,037	303,485 174,964 85,642
Singapore UK Papua New Guinea Japan	17,697 10,295 14,180 39,941	19,076 10,329 13,268 40,519	10,684 23,986 11,041 20,260	13,315 13,115 9,566 20,740	17,408 15,390 17,209 27,309	29,899 27,334 27,217 26,325
Indonesia Malaysia Thailand Philippines	19,627 18,569 6,813 2,905	12,758 20,065 5,716 2,193	6,982 3,549 7,023 1,338	19,769 6,942 7,233 1,990	35,724 9,092 9,257 3,037	33,466 12,508 11,065 2,907
ASEAN 4	47,914	40,732	18,892	35,934	57,110	59,946
Others	115,159	131,789	143,117	129,333	146,501	175,204
Total	477,484	555,600	538,169	649,259	813,176	910,016

Source:

World Trade Atlas

Australia's Automotive Parts Exports by Item/Country in 2001

(1,000 AUD)

	Brake 870839	Gear box 870840	Seat belt 870821	Road wheel 870870	Others	Total 8708
USA Korea New Zealand	162,459 4,201 5,163	563 103,036 547	277 51,318 104	29,074 122 4,768	111,112 16,287 75,060	303,485 174,964 85,642
Singapore UK Papua New Guinea	2,791 89 414	240 532 26	508 47 62	848 1,180 868	25,512 25,486 25,847	29,899 27,334 27,217
Japan Saudi Arabia Vietnam	365	698 19	135	2,244	22,883 24,681 21,520	26,325 24,700 21,520
Indonesia Malaysia Thailand Philippines	2,001 759 1,356	122	0	145 365 226	31,198 11,749 9,344 2,681	33,466 12,508 11,065 2,907
ASEAN 4	4,116	122	0	736	54,972	59,946
Canada Mexico Others	4,115 9,562 3,940	2,700	1,100	43 11,098	6,496 237 89,693	10,611 9,842 108,531
Total	197,215	108,483	53,551	50,981	499,786	910,016

Source:

World Trade Atlas