by The automotive Aftermarket in Australia has been steadily growing over the past decade as the average age of vehicles on Australian roads increases. With more older vehicles on the road needing replacement and repair parts, the Aftermarket sector has found increased opportunities to service these vehicles and keep them running. Let’s take a look at some of the key trends currently impacting the Australia automotive Aftermarket.
Rising Average Vehicle Age
According to data, the average age of light vehicles (cars and light commercial vehicles) on Australian roads has been increasing year Aftermarket year, rising to over 10 years old on average currently. This is significantly higher than average vehicle ages even a decade ago. As vehicles keep their registration for longer before being retired or exported, it means there are more older vehicles in need of Aftermarket repairs and replacement parts to keep them roadworthy. The vast majority of the Australian fleet is now over 6 years old, requiring regular maintenance and repairs that benefit the Aftermarket.
Growth Of Independent Repairers
To service the growing number of older vehicles, the independent automotive repair sector across Australia has been expanding rapidly. Independent automotive repairers that are not directly affiliated with vehicle brands have grown to now outnumber licensed dealer workshops across most major cities and regional areas. Independent repairers can often complete repairs and source parts more affordably than licensed dealers. Their competitive pricing and convenience of location is attracting more vehicle owners, especially for those driving older or high-mileage vehicles no longer under warranty who want cost-effective repair options. This shift to independent repairers has provided Aftermarket parts suppliers with a major new sales channel.
Increasing Complexity Of Vehicle Systems
While average vehicle ages are rising, the technology and complexity within modern vehicles continues to rapidly advance each year with new innovations. Integrated electronics, driver-assistance systems, and more precisely-engineered components are pushing repair times higher and requiring advanced diagnostic tools to repair properly. Aftermarket parts suppliers have needed to invest heavily in research and development to reverse-engineer these advanced systems and components to engineered-equivalent replacement parts. They also provide updated diagnostic tools and repair manuals to technicians. Catering to the repair of increasingly sophisticated vehicle technology has become big business and a key focus area for major Aftermarket brands.
Demand For Green Technology Parts
As environmental policies encourage more sustainable transport, vehicle electrification is increasing in Australia automotive Aftermarket with growing EV and hybrid sales. While still a low overall percentage of sales, electric drivetrains require a unique Aftermarket support network for replacement components. Suppliers are engineering replacements for high-voltage batteries, electric motors, and other niche EV components. At the same time, demand remains strong for conventional engine and driveline parts as the existing Australian vehicle fleet remains overwhelmingly combustion-engine based. Aftermarket players recognise green opportunities while still investing heavily in traditional parts production to back the current in-service vehicle population.
E-Commerce And Online Purchasing
Online purchasing has surged across nearly all retail , and the automotive Aftermarket part sales are no exception. Major suppliers have invested in their own extensive e-commerce divisions and web stores to capitalise on consumer demand for online shopping convenience. Technician buyers also increasingly purchaseparts online. Whether searching product catalogs or completing an entire order, much of the automotive Aftermarket transactional business now occurs via the internet on supplier websites or third-party places. Suppliers have focused on streamlining their websites, improving search/checkout processes, and offering fast delivery options to capture this growing online Aftermarket spend.
Warehousing And Distribution Networks
To keep independent repairers and workshop stocked with the huge variety of replacement parts demanded across Australia’s vast road network, Aftermarket suppliers requireadvanced warehousing anddistribution infrastructure. Major players operatesophisticated, automated national distribution networks from strategically located regional warehouses.From these central hubs, sophisticated logistics systems ensuresame or next day delivery of parts orders to suburban and ruralrepair sites. Automated pick/pack systems minimise handling times soorders can be fulfilled promptly. Fleets ofrefrigerated vans thendeliver orders quicklyto thousands of customer locationsdaily. Thesestreamlinedsupply chainsarecritical forcustomersrelying oneffective just-in-time parts delivery.
Faced with an aging national vehicle fleet, booming independent repair sector, sophisticated new vehicle technologies, rising focus on green parts, and shifting customer purchase preferences online – the Australia automotive Aftermarket has needed to steadily evolve. Major suppliers have invested heavily in R&D, production, distribution infrastructure, and e-commerce to remain ahead of these changes and ensure a reliable supply of affordable replacement components reaches technicians nationwide. With average vehicle lifecycles lengthening, the Aftermarket sector looks set to keep growing to service Australia’s vast in-service vehicle population for years ahead. Strategic investment and innovation will remain important pillars for Aftermarket players tackling this expanding landscape.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
About Author - Money Singh
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. LinkedIn Profile
