Automotive Aftermarket Industry Thriving
Automotive consumers and fleet managers are increasingly opting for independent workshops to service and repair their vehicles.
The findings form part of the groundbreaking State of the Industry research report unveiled by the Australian Automotive Aftermarket Association (AAAA) in collaboration with Fifth Quadrant. The report highlights the evolving service and repair trends on the nation’s car-parc, which currently comprises 19.7 million vehicles.
Annually, the automotive service and repair sector sees an average expenditure of $10 billion, with 70% attributed to consumer vehicles and 30% to fleet vehicles.
The latest research indicates a 10% increase in market share for independent workshops servicing consumer vehicles over the past three years, now accounting for 60% of all service and repair activities. The aftermarket sector now commands 57% of consumer vehicle revenue, marking a five percent increase during the same period.
In the fleet space, the shift toward the aftermarket is even more pronounced with the sector now holding a dominant 55% market share, a substantial 23% increase since 2021. This contrasts with a 21% decrease in dealership market share over the same period, debunking perceptions that the aftermarket only serves older vehicles.
“We are very pleased to see that consumers and fleet managers are increasingly choosing independent workshops to service and repair their vehicles,” said Stuart Charity, CEO of the AAAA.
AAAA’s research also explored why the shift toward the aftermarket is occurring; with relationships, customer trust, convenience and competitive pricing all contributing factors in the research findings. In the trust category independent workshops are striding ahead, with 71% of consumers trusting their local mechanic.
The service and repair shift to the aftermarket has coincided with a healthy growth in independent workshops numbers, expanding by 12% to 27,700 over the last five years. This growth has also created more workshops offering employment, and expanding workshop facilities to meet demand.
“With forecasts indicating a 20 percent increase in the number of individual service and repairs undertaken each year by 2030 we are expecting continued growth in service and repair activities for our independent workshops for many years to come,” said Stuart.
“This growth, which we welcome and support, doesn’t come without challenges, and there is a desperate need for more qualified technicians and apprentices to meet this demand. As the peak body for the automotive aftermarket, the AAAA will continue to address the skills shortage challenge on behalf of the industry, which is being tackled at government, industry and at a workshop level.
“While we must be cognisant of the challenges facing us, this new research clearly shows the positive trajectory of the aftermarket industry and presents a promising outlook for the future,” said Stuart.
