Australian Automotive Industry

&

A New Car Plan for a Greener Future

Adil Mohamed

Australian Government

1896 Shearer

1904 Ohlmeyer

1919 Australian Six

1938 Oldsmobile – body by Holden

Automotive Industry

• Manufacturing cars since 1949

Heavy vehicle assemblers

Australian automotive industry

• Australia is:

– one of 15 countries capable of taking a vehicle from concept to production

• 51,700 employees (August 2009)

• Auto exports $4.4 billion (2008-09)

– Amongst Australia’s top 10 export earners

• One million vehicles sold annually (2007, 2008 and 2009)

• Currently produce large passenger motor vehicles

– 324,000 vehicles (2009)

– roughly 50:50 local sales/exports (2009)

• About 200 component producers

• But…industry is under severe pressure

– local production, market share & exports have fallen

A New Car Plan, $6.2 billion

• A New Car Plan for a Greener Future

– attract new investment

– green the industry

– strengthen local supply chain and boost skills

– link local and international supply chains

New Car Plan programs

• A New Car Plan for a Greener Future

– Automotive Transformation Scheme, $3.4 billion

– changes to Automotive Competitiveness and Investment Scheme

(ACIS), $79.6 million

– Green Car Innovation Fund, $1.3 billion

– Auto Industry Structural Adjustment Program, $116.3 million

– Auto Supply Chain Development Program, $20 million

– Auto Market Access Program, $6.3 million

– Auto Industry Innovation Council

– expanded LPG Vehicle Scheme, $10.5 million

– auto tariffs reduce to 5% from 2010

GREEN CAR INNOVATION FUND

The AUD$1.3 billion fund over ten years.

Grants are provided at a ratio of $1 of government funding for every $3, (25%), of eligible

expenditure, contributed by the grantee.

Supports Australian companies for projects that

• Enhance the research and development and

• commercialisation of Australian technologies that significantly reduce fuel consumption

and/or greenhouse gas emissions of passenger motor vehicles.

The program will support:

research and development (R&D)

proof-of-concept

early-stage commercialisation

pre-production development

Merit Criteria • Extent of reduction in fuel consumption and/or greenhouse gas

• Contribution to a competitive Australian automotive industry

Foreign investors?

For foreign companies this provides opportunities to:

– establish an Australian presence

– partner with Australian entities, or

– further develop existing Australian operations/subsidiaries.

CASE EXAMPLE

A collaborative project / joint venture with an Australian partner where there is technology exchange.

Conditions:

• where overseas collaborators are involved the lead applicant must be an Australian entity

• funding contributions from collaborative partners must be made available to the applicant to demonstrate capacity to fund share of costs

Automotive Market Access Program (AMAP)

• Automotive Market Access Program was announced as part of the ‘New

Car Plan for a Greener Future’ on 10 Nov 2008.

The Program includes:

• Appointment of Automotive Envoys:

– The Hon Steve Bracks (Americas and Europe)

– Mr. John Conomos AO (Asia)

• Funding for Team Australia Automotive activities

- Targeting US market for OE components and technology

• Expanded Austrade network in Asia.

Hon Steve Bracks Mr. John Conomos

AUSTRALIA INDIA CHINA THAILAND KOREA

Automotive Mission to India

• A very successful and comprehensive

Automotive Mission to India in Feb 2010

- 10+ Group meetings, 50+ Individual 1-1 meetings and 3

Networking receptions across 5 cities in India

Australian Automotive Companies

Australian Auto companies with

Investments in India

- Advance Engine Components - Orbital Corp - Race Torque - Reymer Australia (OKA)

- EGR Group - Rhino Linings

- FAT Systems - Tridon Australia - Turbosmart

- Air International - Autoliv Australia - Carter Industries - Carsales.com.au - Davies Craig - Dockland Science - Drivetrain syst Int - Futuris utomotive - MtM Auto - Pedder Suspensions - PAC Group - Toll Holdings - Redbook

- ai Automotive - Diemould Tooling - Sage Automation - T-Mag

Australian Auto companies

Engaged / doing business in India

Australian automotive capabilities

• Key capability areas

• Steering technology

• Brake and chassis systems

• Magnesium alloy casting

• Gear boxes and drive trains

• Electrical switches and other

electronics

• LPG and CNG technologies

• Interiors and logistics

• Heating and air-conditioning

• Electric fans and pumps

• Design and tool-making metal pressing

and stamping

• High performance vehicles

• Automotive technology capability

• Batteries

• Brake-by-wire

• Advanced mirrors

• Lightweight wheels

• Advanced seating

• Lightweight vehicle development

• Driver drowsiness detection

• Advanced computing

• Design, development and prototyping of

hybrid-electric vehicles

• Light metals and hard coatings

Australian automotive footprints in India

• 'Ford Figo' engineered, designed and developed at Ford of Australia.

• Presence of 6 Australian Automotive Companies in India.

• Passenger safety airbags for Tata Indica and Indigo

• Engine Management Systems to Bajaj Auto for three wheelers.

• CNG kits to Tata Motors for buses used for CWG 2010.

• ABS / ECM’s for various models of Tata Motors & Mahindra

• Auto transmission system for Mahindra Scorpio

• Gear Transmission levers for Mahindra Scorpio.

• Aftermarket supplies of High Performance parts

Austrade Presence in India

Automotive Contact:

Adil Mohamed

Senior Business Development Manager – Automotive (India)

AUSTRALIAN TRADE COMMISSION – CHENNAI

Email: adil.mohamed@austrade.gov.au

Phone: +91- 44 -42970004, Mobile: +91- 9840290802

Thank you !