AAAA News

Addressing ADR Challenges:A Path Forward for Australia’s Automotive Industry

The Australian Automotive Aftermarket Association (AAAA) welcomes the review of the Australian Design Rules (ADRs), offering a long-overdue opportunity to address critical challenges faced by the automotive industry.

Announced by the Hon Catherine King, Minister for Infrastructure, Transport, Regional Development, and Local Government, and led by Dr. Warren Mundy, the review provides a chance to tackle systemic flaws in the existing ADR framework. For meaningful outcomes, Dr. Mundy and his team must engage extensively with the aftermarket sector, which plays a crucial role in ensuring in-service vehicle modifications meet ADR standards.

While the review’s focus on international harmonization is important, the AAAA firmly believes the scope must be expanded to better address Australia’s unique needs.

“ADRs have long been influenced by European regulations, but they no longer reflect the realities of the Australian market,” said Lesley Yates, AAAA’s Director of Government Relations and Advocacy.

“Consumer preferences have shifted dramatically toward U.S.-style 4x4s, utilities, and recreational vehicles, yet our regulations remain stuck in a European-centric framework that doesn’t align with Australia’s needs.”

State-by-state inconsistencies in ADR application, combined with onerous and unnecessary compliance requirements, stifle innovation without providing meaningful safety benefits. The aftermarket sector has been forced to adapt, but change is urgently needed to prevent further disruptions to trade and innovation.

“Our industry is conducting more ADR compliance testing than ever before—often exceeding that of OEMs—due to the surge in second-stage vehicle modifications,” said Yates. “This review must address jurisdictional inconsistencies, streamline compliance, and ensure any new measures are evidence-based and proportionate to the actual risks involved.”

The AAAA is the only independent national body representing and supporting the automotive aftermarket industry, which includes manufacturers, suppliers, and retailers of automotive parts and accessories, tools and equipment, and providers of service, repair, and vehicle modifications.

AAAA is urging the government to resist entrenching Australia’s ADRs exclusively within the European framework, advocating instead for regulations that reflect the country’s evolving vehicle demographics, which now closely align with the United States.

“The ADRs are overdue for a refresh that balances harmonization with local relevance. The rules need to support, not hinder, the diverse range of modifications that define Australia’s world-class automotive industry,” Yates added.

Submissions to the ADR Harmonization Review are open until January 24, 2025. Members and stakeholders are encouraged to share their views via ADR Harmonization Review 2024-25

Further underscoring its commitment to regulatory reform, the AAAA conducts the National Light Vehicle Modifications Summit, a unique forum bringing together aftermarket leaders, manufacturers, and regulators. This summit facilitates collaboration on national vehicle standards, supports innovation in vehicle modification, and ensures compliance with evolving regulations. Tickets for the summit are available at www.autocare.org.au/modsummit.

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