Submission to the Productivity Commission’s
Review of the Automotive Manufacturing Industry
in Australia
Submission by the Bus Industry Confederation
November 2013
Introduction
The Bus Industry Confederation (BIC) is the peak national body representing the bus and coach industry in
Australia.
As the primary voice of the bus and coach industry in Australia the BIC works with all levels of Government,
regulatory authorities, the industry and the community to:

Encourage investment in public transport infrastructure and services.

Coordinate and make more effective existing Federal, State and Local Government policies and
programs that relate to public transport.

Improve public understanding of the contribution made by the bus and coach industry to Australia’s
economy, society and environment.

Ensure that the accessibility and mobility needs of Australians are met, regardless of where they live
or their circumstances.

Ensure that buses and coaches operate safely and effectively.
About this Submission
This submission highlights the importance of the Australian bus manufacturing industry to the economy and the
retention of a base of heavy vehicle manufacturing skills and knowledge within Australia.
The Australian Bus Manufacturing Sector
The Australian bus and coach industry encompasses bus body manufacturers, bus chassis suppliers, suppliers of
fully built buses and bus component manufacturers servicing the Australian market. The Australian bus
manufacturing sector employs directly and indirectly more than 10,000 people.
The value of the Australian bus sector, with an average delivery of more than 1,500 large buses (12 and a half
metres and above and more than 26 seats) a year is estimated to be almost $500 million a year.
Figure 1 presents an overview of the total market for large buses from 2004 to February 2013.
Market Trends
Recent years have seen a trend toward fully built vehicles being delivered to the Australian market.
Fully imported vehicles are sourced from China, Japan, Korea, Brazil and Malaysia, with a number of overseas
manufacturers entering the Australian market continuing to grow. In Australia prior to 2005 one hundred per cent
of new buses were being built in Australia. Figures 2, 3 and 4 highlight the change in the in the market over time.
In 2012 40 per cent of the total market and 80 per cent of the school/charter bus market were made up of
imported vehicles. The local manufacturing industry is operating in a highly competitive, relatively small sales
environment with low cost imports having a significant impact on the market and local industry.
Figure 1: Total Market Trend 2004-2013 Australian Bus Market
Total Market Segments Trends 2004 - 2012
2000
1903
1836
1800
1585
1600
1390
1400
1200
1098
1027
1000
400
200
Total Market
1103
Total Route
910
887
839
772
800 735
600
1579
1529
565
438
684
613
549
746
Total School/Charter
795
710
Total Long Distance
610
595
Other
358
255
251
63
4
379
61
8
52
4
62
18
49
5
54
0
80
0
65
9
0
2004
2005
2006
2007
2008
2009
2010
2011
2012
Source: Volgren 2013
Figure 2: Australian Manufactured vs Fully Imported Buses 2007-2011 Trend
1600
1400
1200
1162
1063
1000
Australian
Manufactured
800
600
466
400
200
219
0
2007
Source: Scania Australia, 2012
2008
2009
2010
2011
Figure 3: Total School and Charter Market vs Imported 2006-2012
Total School/Charter Market vs. Imported
Buses
2006 - 2012
900
746
800
684
700
467
436
358
304
300
50.0
40.0
341
30.0
190
200
100
70.0
60.0
500
400
80.0
639
610
595
555
600
90.0
795
20.0
10.0
35
0
0.0
2006
2007
2008
2009
Total SB/Charter
2010
Imported
2011
2012
Imported %
Source: Volgren 2012
Figure 4: Total Market vs Imported Buses 2006-12
Total Market vs. Imported Buses
2006 - 2012
2000
1800
1600
1400
1200
1000
800
600
400
200
0
1903
1836
45.0
1585
40.0
1579
1529
35.0
1387
30.0
1027
25.0
639
190
304
341
436
467
20.0
15.0
10.0
5.0
35
0.0
2006
2007
2008
Total Market
Source: Volgren, 2012
2009
Imported
2010
2011
Imported %
2012
A Unique Skills Set
The Australian bus manufacturing sector retains a unique skills set in heavy automotive manufacturing within
Australia.
The Australian bus manufacturing sector is a niche sector within a global market and has the potential and capacity
to widely diversify into a range of areas.
In addition to delivering Australian made buses to the market Australian bus manufacturers can deliver a range of
essential vehicles including:

Military vehicles

Emergency services vehicles

Armoured security vehicles
Australian bus manufacturers retain a capacity to deliver large quantities of these vehicles locally at times where
sudden increases in production are required and ensure the knowledge of how to manufacture these vehicles is
maintained in Australia.
Whilst the industry is open to competition and the BIC represents both Australian and overseas bus manufacturers
in our advocacy, the retention of the unique skills set within Australia is important for future self-reliance.
Local bus manufacturers have design capability in Australia. Like the automotive industry, local bus manufacturers
require sufficient scale to be profitable and maintain Research and Development programs through skilled
workforce. Once lost, this design capability and workforce would be very difficult to regain.
The local bus manufacturing industry, unlike the automotive industry receives no Government assistance.
The recent entry of large global organisations (Marco Polo and Alexander Dennis) taking ownership of the 2 largest
local bus manufactures which account for some 70% of the local bus manufacturing industry bring significant
expertise in innovation, business practices and management. The local organisations are being trained in these
skills which will have a spill-over effect into other industries.
It is vital that this unique and local skill set and workforce is retained to ensure heavy vehicle automotive
manufacturer excellence and to ensure it is available to other related industries.