With over 20 million registered vehicles currently on Australian roads, the size of the country's automotive Aftermarket has grown considerably in recent years. Favourable economic conditions have seen new vehicle sales hit record highs, pushing the total vehicle parc to its highest levels. As these vehicles age, the need for repairs, maintenance and replacement parts grows. Statistics indicate there are now over 5 million vehicles on Australian roads that are over 10 years old, all of which require Aftermarket support to remain roadworthy. With new vehicle sales projected to continue rising over the coming decades, analysts forecast strong ongoing growth for the Aftermarket segment servicing this expanding vehicle fleet.
Independent Workshops Thrive On Convenience
Independent automotive repair workshops have capitalised on consumer preference for convenience and accessibility when it comes to vehicle servicing and repairs. No longer content with waiting days for a dealer appointment, many vehicle owners opt to use local independent mechanics for basic services and repairs. The flexibility and walk-in availability provided by these smaller businesses has seen their numbers multiply in major cities and regional centres across the country. Technological advancements have also allowed independent workshops to perform more complex repairs that were previously only possible at dealerships. With over 95% of all light vehicles serviced through independent automotive repairers, this segment of the Aftermarket will remain vital in supporting Australian motorists into the future.
Changing Parts Landscape Follows Vehicle Complexity
As vehicles have increased in technological sophistication, so too have the types of components and parts required over their lifespan. Complex engine management systems, driver assistance technologies and evolving emission standards have meant repairs now regularly involve electronic modules, sensors and computer-controlled components. Aftermarket parts suppliers have adapted by expanding their inventories to cater to these changing repair and replacement needs. While commodity parts remain important, the growing role of remanufactured and recycled electronic control units has become a major focus. Suppliers are also developing repair and programming capabilities for advanced driver assistance system technologies to tap into the premium end.
Rise Of Independent Parts Retailers
In line with the proliferation of independent repairers, the parts distribution network supporting them has dramatically expanded in recent decades. Whereas vehicle dealerships and large warehouse chains once dominated parts sales, innumerable independent automotive parts stores have emerged across Australia automotive Aftermarket, catering directly to mechanics and do-it-yourself consumers. Convenient locations, extensive inventories covering all vehicle makes and models, and competitive pricing have seen these Mom and Pop stores prove highly successful. Many leverage modern web-based systems to stay connected to suppliers, some even offering online purchase and delivery. Their entrepreneurial spirit enables these smaller parts retailers to rapidly respond to local demand and outcompete larger centralised operations on service.
Outsourcing Drives Shift To Distributor Model
As vehicle complexity has grown, so too has the level of specialisation required across automotive repair and service functions. Many independent workshops have outsourced more niche diagnostic and programming capabilities to dedicated mobile services. This, along with the proliferation of independent parts retailers, has seen a shift away from the traditional dealer-centric model. Distributors who carry vast multi-line parts inventories and provide technical support services have gained traction by supplying both retailers and mobile technicians. Consolidation is seeing the larger players expand through mergers and acquisitions, benefiting from economies of scale to offer an even wider range of solutions for all areas of the Aftermarket. Their focus on distributing goods efficiently positions them strongly as gateways between suppliers and garages.
Legislative Change Enables Cheaper Repairs
Strong consumer advocacy resulted in recent progressive changes to automotive right to repair legislation. New laws aim to make vehicles and their onboard diagnostics systems more accessible to independent repairers and do-it-yourselfers. Mandating that manufacturers provide access to repair and diagnostic tools as well as sharing vehicle service and repair information is expected to drive down costs for consumers over the long term.By fostering fair competition, these enhancements encourage investment and improvement across the broader automotive repair . Greater transparency around parts availability, safety recalls and warranties will deliver ongoing benefits. Meanwhile, a thawing of licensing restrictions has enabled mobile technicians to expand diagnostic and programming service reach into new regional areas.
Green Initiatives Open Up Reuse Opportunities
Clamping down on automotive emissions through alternative fuel and electric vehicle mandates has major implications for the Aftermarket. However, it also presents opportunities as an inevitable surge in battery and fuel cell replacements will emerge. Remanufacturing and reusing has become focus areas, with some leading programs collecting and redeploying modules from decommissioned vehicles. Elsewhere, recycling infrastructure is scaling up to efficiently extract precious and scarce metals from aging batteries. Financial incentives are pulling consumers toward electric options, yet their lifetime costs rely upon viable repair and maintenance channels developing in parallel. If positioned to capture this emerging Aftermarket, the Australia automotive Aftermarket looks primed for enduring sustainable growth well into coming decades.
Get more insights on this topic: https://www.pressreleasebulletin.com/the-growing-australia-automotive-aftermarket/
Author Bio:
Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163 )
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
Comments
0 comment