Every year 800,000 new cars are sold in Australia, but little has been done in the way of objective research to map the Australian car industry. In a bid to address this, Monash marketing experts are taking part in a major collaborative study.

By Corey Nassau

The International Car Distribution Program (ICDP) is a worldwide effort designed to map the motor vehicle distribution system - supplying cars to dealers, selling, servicing and re-marketing them.

A research team at Monash University, led by Mr Peter Dapiran from the Department of Marketing, is currently conducting research for the Australian arm of the project, the ICPDA.

Currently the centre, based at the univer-sity's Gippsland campus, has more than 8000 students within Australia and overseas studying through distance education.

In what is perhaps the first piece of objective research into the used vehicle market in Australia, marketing management lecturer Ms Linda Brennan has completed the group’s first research project.

With the average age of cars on our roads being 10.7 years, Ms Brennan says the used car market here is very different to those overseas, such as in Europe for example, where the focus is very much on new cars.

"Being an island continent, our cars are ‘bounded’, meaning we have no secondary market to push our cars into. As a result we have to manage our second-hand vehicles efficiently," Ms Brennan said.

	Mr Peter Dapiran, Ms Susan Freeman and Ms Linda Brennan

She describes the second-hand vehicle market in Australia as one where there are some very sophisticated businesses that are able to address some very sophisticated data management issues.

"I found that those businesses that are members of associations like the VACC or the AADA were generally very good, and some of the larger dealerships were run as very professional organisations," Ms Brennan said.

According to Ms Brennan, the results of the research will change people’s perception of the used car industry. She says it is apparent now that the Australian used vehicle market displays best practice standards in keeping records, managing stock and understanding what is required for profitability.

"The general perception that used car dealers are a bunch of cowboys is incorrect. In the main they run their businesses very efficiently," Ms Brennan said.

According to Mr Dapiran, similar research is soon to be conducted in South Africa, which will help provide benchmarking standards between two very similar markets.

The other two projects currently under way for the ICPDA include Mr Dapiran's study, 'New vehicle dealer best practice' and fellow lecturer Ms Susan Freeman's study, 'New vehicle supply and stocking'.

"The ICDP in Europe has been a definite positive influence on the way car distribution has been managed there. The expectation is that the ICDPA-sponsored research will have a similar impact on the Australian automobile industry," Mr Dapiran said.

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