Speech
Address to Automotive Market Access Program Function
December 5, 2009, Melbourne
Acknowledgments
Thank you Mike (Mike Moignard);
Victorian Minister for Industry and Trade, Martin Pakula
Business Development Managers based in China, India, Thailand and Korea
Local automotive industry representatives
Introduction
It is my pleasure to launch the Automotive Market Access Program conference on behalf of Austrade, the Australian Government’s trade and investment agency, and Austrade’s partner in this program, the Victorian Government’s Department of Innovation, Industry and Regional Development.
The Australian automotive industry is a vital and important sector for our economy and sustains 60,000 Australian manufacturing jobs, an estimated 30,000 of which are right here in Victoria.
For 2009, an estimated 220,000 vehicles will be manufactured in Australia, with around 50% of these vehicles exported. Whilst this is down on previous years, positive signs are emerging of a turnaround.
Furthermore, it is estimated that the annual value of automotive manufacturing exports to the Victorian economy is approximately $2.8 billion.
The Government is keen to increase the export of our advanced automotive components, technology and services – particularly to Asia.
The Government is also keen to attract new inbound automotive investment as a way to further develop our innovative technology base in this industry.
New Car Plan for a Greener Future
Just over a year ago, the Prime Minister announced the ‘New Car Plan for a Greener Future’.
I am sure that everyone here today understands the significance of this Plan, which is to make the automotive industry more economically and environmentally sustainable by 2020.
The Automotive Market Access Program is part of this Plan. It is about opportunities for the auto industry to grow.
And grow we must.
Many of the fastest-developing automotive markets and product centres in the world are in Asia, but Australia’s auto exports and two-way investment to this region are modest.
Yet we have China, India, Indonesia, Korea and Thailand literally on our doorstep!
Greater integration of the Australian auto industry with Asia will also directly contribute over the long term to the auto industry’s capability back here.
It is noteworthy that an estimated 80 per cent of tier one auto component manufacturing companies in Australia are currently foreign owned, which includes investment from India and China.
China’s automotive plan
The numbers for the automotive industry in Asia are huge. China, alone, is set to produce ten million vehicles this year.
In July, two of my ministerial colleagues, Simon Crean and Kim Carr, visited a number of automotive companies in China, including the Shanghai Automotive Industry Corporation (SAIC), Chery, Dongfeng, Geely, and JAC.
During this visit it was agreed that the Australian Government, with industry assistance, would establish joint working groups with these companies.
John Conomos, one of the Automotive Envoys appointed under the Automotive Market Access Program, is already working to formulate our strategy here.
New automotive teams in Asia
The Automotive Market Access Program has also enabled Austrade to locate a new automotive team in Asia.
In India, we’re expanding the team in Chennai to assist with accessing the growth market there.
And we’re looking at opportunities in Seoul, Korea and in Bangkok following the start of the ASEAN-Australia-New Zealand Free Trade Agreement, which comes into effect on January 1.
As I have said, China is a major focus. I will leave it to my colleague, Minister Pakula to discuss are plans for the team there.
If I can just finally highlight once again the size of the collective opportunity in China, India, Thailand, and Korea. With a combined estimated 2009 population of 2.6 billion, the collective GDP of these markets is forecast to be $7.067 trillion in 2009.
There is already a lot happening – and we look forward to further success in two-way trade for the Australian automotive industry.
Thank you.