For further information on the Automotive industry in Australia, please contact Commercial Specialist Melanie Heskin, U.S. Commercial Service Melbourne on Tel: (+61-3) 9526-5924, Fax: (+61-3) 9510-4660, Email: melanie.heskin@N0SPAM.mail.doc.gov

Overview

The economic crisis will have a short-term negative impact on capital-equipment purchases within the automotive industry. It is anticipated that the slowdown of new car sales as a result of the world economic crisis will have a positive impact on the aftermarket industries as more consumers look to improve and repair their existing motor vehicles. Adopted from industry experts, the forecasts above indicate a decrease in local production which will have a positive impact on imports; an expected 3 percent increase in imports from the U.S. from 2008 to 2010.

The Australian Automotive Aftermarket Industry is a mature industry that is believed to be moving into decline. The Federal Chamber of Automotive Industries (FCAI) reports that new vehicle sales have decreased 2.9 percent or 28,048 vehicle sales from November 2007 – November 2008. As of November 2008, market shares were; Toyota (22 percent), GM Holden (14 percent), Ford (10 percent), Mazda (7 percent), and Mitsubishi (6 percent). Of these companies, GM Holden, Ford, and Toyota have manufacturing facilities in Australia.

The industry is increasingly driving towards the acquisition of businesses by larger companies, which has led to the consolidation and rationalization of the industry. It should be noted that cars in Australia have a right side steering column as they drive on the left side of the road.

The U.S.-Australia FTA has resulted in the elimination of tariffs across most U.S. automotive imports. This fact coupled with the larger size of the U.S. industry has contributed to a 10.4 percent increase in U.S. exports to Australia since its inception. Future growth potential may be limited by the modest size of the Australian market. Although the United States is Australia’s largest import source of these components, U.S. exports to Australia represent less than 2 percent of total U.S. exports of motor-vehicle parts.

Best Prospects

The Australian automotive market provides good opportunities for U.S. suppliers of both specialty aftermarket equipment/accessories as well as the necessary aftermarket parts such as; 4WD parts and accessories, street performance parts and accessories, and automotive tools. In general, high-quality, innovative, environmentally conscious and competitively priced parts and accessories are particularly in demand.

Standards

Before a road vehicle can be registered for the first time in Australia, it must comply with the Federal Motor Vehicle Standards Act 1989. The Motor Vehicle Standards Act requires vehicles as well as automotive parts and accessories to meet the national standards that cover a variety of safety and emission requirements. These national standards are currently known as the Australian Design Rules (ADRs). Compliance with the ADRs is overseen by the Department of Transport and Regional Services (DOTARS); www.dotars.gov.au.

The Australian Quarantine and Inspection Service (AQIS) inspect secondhand automotive parts. Therefore some U.S. companies may also have to comply with the AQIS standards; www.aqis.gov.au.

Opportunities

A prime area of opportunity in Australia’s auto sector is for accessories and replacement parts for light and medium-sized family cars and sports utility vehicles. Parts and accessories for routine auto maintenance, street performance, and high-end cosmetic auto enhancement also offer considerable opportunity for U.S. firms. Sales are generally through agents or distributors.

Trade Shows

National 4x4 Show
Frequency: Annual
Email: info@N0SPAM.etf.com.au
Tel: +61 3 9321 6755
Fax: +61 3 9321 6751
Web Site: www.4x4show.com.au or www.etf.com.au

Brisbane: March 20-22, 2009 -RNA Exhibition Grounds
Melbourne: Dates TBC -Melbourne Exhibition and Convention Center

Auto Equip Expo 2009
Frequency: Annual (alternates with Sydney)
Date: TBC
Location: Melbourne Convention and Exhibition Centre
Tel: +61 2 9452 7575
Email: info@N0SPAM.expertiseevents.com.au
Web Site: http://www.autoequipexpo.com.au/sydney08.php

THE AAAA Expo 2009
Date: April 2-4, 2009
Location: Sydney Convention and Exhibition Center
Frequency: Biannual
Tel: +61 3 9654 7773
Email: aaaa@aec.com.au
Web Site: http://www.aaaa.com.au & http://www.aec.net.au/aaaa

Collision Repair Expo
Date: April 2-4, 2009
Location: Sydney Convention and Exhibition Center
Frequency: Biannual
Tel: +61 3 9654 7773
Email: aaaa@aec.com.au
Web Site: http://www.collisionrepair.com.au & http://www.aec.net.au/aaaa