Zone RV, a luxury caravan manufacturer based on the Sunshine Coast, entered voluntary administration on Monday, resulting in the redundancy of most of its 250 employees. The closure follows a series of recent collapses among Australian caravan companies, reflecting broader challenges in the domestic manufacturing sector.
In the past two years, multiple caravan businesses have gone under. Infinity Motorhomes on the Gold Coast entered liquidation in 2023, followed by Victoria’s Highline Caravans in May 2024. Melbourne-based Tango Caravans collapsed in August 2024, reportedly owing more than $3.4 million to customers, suppliers, and the tax office.
Gold Coast companies Boss Adventure and Hitch & Go also closed in July 2025 after shareholder disputes led to court-ordered wind-ups. Boss Adventure’s assets were later purchased by JVA Corp, allowing the business to continue operating.
Data from CreditorWatch indicates that closures in the motor vehicle and motor vehicle part manufacturing sector — which includes caravan manufacturing — peaked in October 2024, and have since leveled off to slightly below the national average for all businesses.
Industry experts point to rising costs and market pressures as key factors behind these closures. Luke Chippindale, from the Caravan Industry Association of Australia, highlighted “increasingly significant” manufacturing costs in Australia.
He said caravans built domestically are “extremely high quality” and largely bespoke, which drives up production costs. He added that high labour costs, combined with the absence of local vehicle manufacturing, make production more expensive.
The market dynamics following the COVID-19 pandemic have also affected the sector. Richard Barwick, CEO of the Campervan and Motorhome Club of Australia, noted that a “large supply” of caravans at dealerships has created pressure on businesses.
According to ABC News, he suggested that consolidation may be necessary for the industry to maintain high-quality products, stating, “Currently, in my opinion, there are too many [caravan companies].”
Changing consumer expectations have further influenced costs. Chippindale described modern caravans as “a high, glossy home on wheels,” requiring manufacturers to innovate while managing delivery timelines.
Both experts emphasized the importance of cost management and government collaboration to support industry sustainability. Barwick also encouraged consumers to “do their research” to ensure value for money when purchasing caravans.
The recent wave of closures underscores the financial and operational challenges facing Australian caravan manufacturers. Businesses in the sector may need to consider strategic consolidation, cost management, and innovation to remain viable while meeting evolving consumer expectations.