Australian Service Station
and Convenience Store Association (ASSCSA)
A National Industry Sector Committee of the Motor Trades Association of Australia

Industry Activity

The Australian Automotive Industry conducts and supports a wide range of industry based conventions, programs and activities.

2015 17 Industry snapshot Motor vehicle new parts wholesaling in Australia

The motor vehicle new parts wholesaling industry has two major markets: motor vehicle manufacturers and the service parts aftermarket. The decline in activity and the impending closure of Australia’s largest local motor vehicle manufacturers (Toyota, Holden and Ford) has significantly reduced demand for new motor vehicle parts. However, as the Australian motor vehicle fleet continues to grow and disposable incomes increase, the demand for motor vehicle new parts is expected to continue. Regardless of this growth, it is projected that some industry players will be forced out of the industry. (Source: Wu, T. IBISworld. Jan2017).

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2016 17 Industry snapshot Motor vehicle engine and parts repair and maintenance in Australia

Continuing growth in the motor vehicle engine and parts repair and maintenance industry is largely due to consistent growth in the number of motor vehicles and increases in real household disposable income. New technology introduced into vehicles will require specialist skills and training and nonmanufacturer aligned workshops will be disadvantaged if government policy does not ensure access to repair information. (Source: Johnson, S. IBISworld, Mar 2017).

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Motor vehicle parts retailing in Australia

The motor vehicle parts retailing sector is continuing to grow steadily as disposable incomes rise and consumers have the choice of purchasing new vehicles and maintaining their current vehicle. As the number of Australian registered cars increase the demand for specialised motor vehicle parts also rises. (Source: Thomson, J. IBISworld. Aug 2017)

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comparing automotive industry by states

Each state in Australia differs in the numbers and types of automotive activities being undertaken. They also differ in terms of industry growth and decline and business confidence.

All states experience skill shortages that are constraining growth. Skills shortages are largely the result of reduced apprenticeships and automotive training schemes.

NSW, ACT, Victoria, South Australia and Western Australia all experienced industry decline. Growth in Victoria and South Australia are restricted by reduced automotive manufacturing activities whilst Western Australia is affected by the reduction in mining activities. Advancements in automotive technology and increasing affordability of new cars are reducing demand for automotive repair services. Offsetting this, new car sales are growing which increases the size of the Australian vehicle fleet.

In comparison, Tasmania, Northern Territory and Queensland are experiencing positive growth and higher levels of business confidence. For Queensland and Northern Territory, growth can be contributed to a growing population and consumer demand. (Source: VACC 2017).

Source: Victorian Automotive Chamber of Commerce (VACC) (2017). Directions in Australia’s automotive industry: An industry report 2017.

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motor vehicle wholesaling 2017 18

With the end of the local car manufacturing in Australia, the demand for imported vehicles will fuel growth within the motor vehicle wholesaling sector. Increased demand is also the result of higher discretionary incomes, positive business confidence and an increasing demand for imported vehicles (particularly smaller vehicles and SUVs). Intense competition between dealers and pressure from manufacturers to clear stock reduces consumer purchase costs and profit margins for industry operators. (Source: Thomson, J. IBISworld. Aug 2017).

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