The Australian Automotive Aftermarket Is Driven By Increasing Vehicle Fleet

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The Australian automotive aftermarket includes replacement parts, accessories, performance upgrades and appearance modifications for used passenger vehicles and commercial vehicles. It caters to the maintenance, repair and service of vehicles outside the original warranty offered by OEMs. Key components include batteries, braking systems, filters, engine parts, lighting, tires and rims. These allow customers to customize their vehicle's appearance and performance as per their requirements. The aftermarket distribution system comprises warehouse distributors, specialist distributors, parts retailers and installers. Online platforms are also gaining prominence for offering a wider choice and competitive pricing.

Australia Automotive Aftermarket Market is estimated to be valued at US$ 9.88 Bn in 2024 and is expected to exhibit a CAGR of 10.% over the forecast period 2024-2031.

Key Takeaways

Key players operating in the Australian Automotive Aftermarket are Denso Corporation, Hella KGaA Hueck & Co., Continental AG, Delphi Automotive, ACDelco. These companies occupy a major share through their extensive product ...
... portfolio and wide distribution network across the country.

The growing vehicle fleet in Australia is a major factor driving demand in the aftermarket. As more cars ply on roads, the need for replacement parts and repairs increases substantially over the years. Moreover, Australians usually own their vehicles for longer duration necessitating periodic maintenance and fixes.

The market is also witnessing increased global expansion activities from overseas players. Several international brands are entering partnerships with local distributors to boost availability of their products. Others are setting up manufacturing plants to cater to the strong demand and hedge risks arising from supply chain and logistic issues.

Market Drivers

Rising mileage of existing vehicles is a key factor propelling the automotive aftermarket. As cars clock higher annual kilometers, their parts undergo accelerated wear and tear mandating more frequent replacements. Extended lifecycles have resulted in an older average vehicle age in Australia. This substantially raises the need for aftermarket components and services.

The current geopolitical uncertainties are impacting the growth of the Australia automotive aftermarket market. Factors like rising geopolitical tensions between Australia and China are disrupting the supply chains. China is a major trading partner and source of imports for Australia. The rising tensions have led to sanctions and counter sanctions between the two countries. This is negatively impacting the availability of automotive spare parts and components in the Australian aftermarket. Similarly, the ongoing Russia-Ukraine war is exacerbating the supply issues. Both Russia and Ukraine are major exporters of raw materials for automotive components like palladium, nickel, and aluminum. The supply disruptions caused by the war are affecting automotive part manufacturers in Australia.

To sustain growth in such uncertain times, aftermarket players need to diversify their supply sources. Locating alternate suppliers in friendly trade nations can help reduce over-reliance on potentially volatile partners. Investing in local manufacturing is another strategy. This will help shore up domestic supply capacity and insulate the market from export troubles. Players also need to focus on demand forecasting and inventory management. Accurate prediction of part requirements and maintaining optimal stock levels can help meet demand despite supply issues. Collaboration across the value chain from manufacturers to retailers can streamline forecasting and inventory synchronization. Adopting such proactive strategies will help Australian automotive aftermarket companies mitigate geopolitical risks and sustain growth over the long term.

In terms of geography, the state of New South Wales generates the highest automotive aftermarket revenue in Australia due to higher vehicle sales and concentration of service centers and workshops. It accounts for over 35% of the country's total aftermarket value. Similarly, Victoria and Queensland are also leading automotive aftermarkets owing to their large vehicle parc and presence of major cities. Regarding growth, Western Australia is projected to see the fastest expansion in its aftermarket business over the forecast period. Factors like rising mineral exports, industrialization, and urbanization are driving higher vehicle adoption and maintenance needs in Western Australia.

The current geopolitical uncertainties like tensions between Australia and China and the ongoing Russia-Ukraine war are exacerbating supply issues for automotive spare parts and components in the Australian aftermarket. To sustain growth in these uncertain times, aftermarket players need to diversify suppliers, invest in local manufacturing, focus on demand forecasting and inventory management through collaboration. In terms of geography, New South Wales generates the highest aftermarket revenue for Australia while Western Australia is poised to witness fastest market growth over the forecast period due to increasing vehicle density and economic development.

Get more insights on this topic: https://www.timessquarereporter.com/news/australia-automotive-aftermarket-market-to-surpass-us-16-billion-by-2031-owing-to-growing-demand-for-quality-aftermarket-services                       

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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)

What Are The Key Data Covered In This Australia Automotive Aftermarket Market Report?

:- Market CAGR throughout the predicted period

:- Comprehensive information on the aspects that will drive the Australia Automotive Aftermarket's growth between 2024 and 2031.

:- Accurate calculation of the size of the Australia Automotive Aftermarket and its contribution to the market, with emphasis on the parent market

:- Realistic forecasts of future trends and changes in consumer behaviour

:- Australia Automotive Aftermarket Industry Growth in North America, APAC, Europe, South America, the Middle East, and Africa

:- A complete examination of the market's competitive landscape, as well as extensive information on vendors

:- Detailed examination of the factors that will impede the expansion of Australia Automotive Aftermarket vendors

FAQ’s

Q.1 What are the main factors influencing the Australia Automotive Aftermarket?

Q.2 Which companies are the major sources in this industry?

Q.3 What are the market’s opportunities, risks, and general structure?

Q.4 Which of the top Australia Automotive Aftermarket companies compare in terms of sales, revenue, and prices?

Q.5 Which businesses serve as the Australia Automotive Aftermarket’s distributors, traders, and dealers?

Q.6 How are market types and applications and deals, revenue, and value explored?

Q.7 What does a business area’s assessment of agreements, income, and value implicate?

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it