Bold reality check: Australia’s caravan industry is under pressure, and a wave of closures isn't just bad luck—it's signaling a structural crunch that affects manufacturers, workers, and buyers alike. This is the story behind Zone RV’s administration and the broader pattern of recent collapses, with several notable companies failing or restructuring in quick succession.
Multiple companies have disappeared in recent years
Several Australian caravan makers have fallen by the wayside. Infinity Motorhomes (Gold Coast) entered liquidation in 2023, followed by Highline Caravans (Victoria) in May of the previous year. Melbourne’s Tango Caravans also collapsed in August 2024, leaving creditors—including customers, suppliers, and the tax office—owed more than $3.4 million. In the Gold Coast region, Boss Adventure and Hitch & Go ceased operations in July of the current year after a shareholder dispute triggered a court-ordered wind-up. Liquidators reported claims exceeding $3.5 million against Boss Adventure, which marketed Chinese-made caravans. Although the business paused, it continued operating after its assets were acquired from the liquidator by JVA Corp. The latest development saw Zone Manufacturing on the Sunshine Coast fall into voluntary administration, with the vast majority of its 250 staff made redundant. This downturn comes as CreditorWatch data shows motor vehicle and parts manufacturing—encompassing caravan production—reached a peak in October last year, though the figure has since leveled off and sits just below the all-industry average.
Rising manufacturing costs are a core driver
Industry observers, including Luke Chippindale of the Caravan Industry Association of Australia, point to persistently high manufacturing costs as a key factor in these closures. He notes that the sector isn’t immune to broader economic pressures seen in construction, trucking, and agriculture, and adds that supply chain disruptions persist even after COVID-19.
Australian-built caravans tend to be high-quality and often bespoke, which makes their price tags considerably higher. With Australia’s comparatively high labor costs and the exit of vehicle manufacturing from the local scene, costs naturally rise—especially since the loss of domestic collaboration can reduce efficiency and escalate expenses.
Post-pandemic supply and current market dynamics
During the COVID-19 lockdowns, caravan demand surged as families and travellers stocked up, leading manufacturers to scramble to restock and secure components. Today, the market has returned to more typical levels, and dealers report a surplus of caravans on sale. This abundance, combined with cautious consumer purchasing behavior, has put pressure on businesses that built to long lead times and premium specifications.
Richard Barwick, CEO of the Campervan and Motorhome Club of Australia, describes the market as facing a larger supply of units and a slower sell-through rate, which squeezes margins and cash flow. He argues that the industry would benefit from consolidation to maintain quality while managing scale and costs.
The demand for a premium “home on wheels” and its cost implications
As the market shifted toward families and grey nomads alike, caravans began to be marketed as premium, glossy homes on wheels. This shift has driven manufacturers to innovate and streamline go-to-market timelines, but it also raises the cost burden. Higher input costs, shipping, and shorter windows to recoup investment all contribute to a fragile financial balance for many producers.
Barwick and Chippindale both emphasize that if ventures cannot achieve profitability, their viability will deteriorate quickly. Protecting consumers while ensuring value for money remains a central concern for the industry’s leadership.
Calls for cost-cutting and industry collaboration
Chippindale advocates for industry-wide efforts to curb costs, including energy and insurance expenses, and suggests that government collaboration with manufacturers could help stabilize the sector. Reducing operating costs would ease the pressure on cash flow and help prevent further closures.
Barwick also urges consumers to exercise due diligence: verify the deal’s value, understand long-term costs, and beware offers that seem too good to be true. The alignment of price, quality, and service is critical to a positive ownership experience.
Bottom line for buyers and policymakers
The caravan sector’s recalibration will likely involve consolidation among manufacturers, heightened focus on efficiency and supply chain resilience, and continued consumer education to ensure quality products at fair prices. As the market evolves, stakeholders—from regulators to retailers to buyers—will need to balance innovation with affordability while safeguarding jobs and investment in Australian manufacturing.
What do you think about these shifts? Should there be stronger protections for buyers and more government support to stabilize the industry, or is market consolidation the best path forward? Share your perspective in the comments.
