Australia Automotive Market Report and Forecast 2024-2032

Australia Automotive Market Outlook

The Australia automotive market is expected to grow at a CAGR of 5.9% between 2024 and 2032.

Key Takeaways:

• The Australian aftermarket for replacement parts and accessories is valued at approximately USD 9.2 billion, with local manufacturers and imported aftermarket parts sharing this market evenly. 

• According to estimates from the Australian Automotive Aftermarket Association (AAAA), annual exports of aftermarket parts from Australia amount to around USD 1.85 billion. In 2021, U.S. auto parts exports to Australia reached a value of USD 1.85 billion. China stands as the primary source of auto parts imports into Australia, followed by the United States, Japan, Thailand, Germany, and Korea.

Australia is a key market for U.S. auto parts exports, ranking ninth globally. The market is relatively accessible for U.S. companies, with all vehicles being imported. The aftermarket for replacement parts and accessories is valued at approximately USD 9.2 billion, evenly split between local production and imports.

Annual Australian exports of aftermarket parts are estimated at USD 1.85 billion, with U.S. auto parts exports to Australia reaching USD 1.85 billion in 2021. China is the largest source of auto parts imports, followed by the U.S., Japan, Thailand, Germany, and Korea.

The performance market in Australia encompasses several segments. Firstly, there's a demand for performance and aftermarket parts for various vehicle brands, including Ford, European brands like Audi and Porsche, as well as Japanese manufacturers like Toyota and Honda. Performance parts are also sought after for locally-manufactured vehicles such as the Ford Commodore and GM Holden Falcon while driving the Australia automotive market growth.

Another segment is supplying parts to the motorsport industry, covering drag racing, circuit racing, off-road racing, and powerboat racing. The off-road market is particularly promising, driven by the vast outback terrain and the popularity of light trucks like Toyota Hilux and Ford Ranger. Popular accessories include upgraded suspension components, bull bars, roof racks, and lighting upgrades.

U.S. manufacturers are well-regarded in Australia for producing high-quality auto aftermarket and specialty products. Key opportunities for U.S. manufacturers in the Australian market include supplying aftermarket performance parts, off-road accessories, repair tools, and consumables.

Exporting automotive products to Australia involves minimal barriers under the Australia-U.S. Free Trade Agreement, provided products meet the minimum 51% U.S. content requirement. Compliance with Australian Design Rules (ADRs) is essential, sometimes necessitating modifications to meet local standards.

The automotive market in Australia, although now entirely import-driven, remains a significant contributor to the economy, employment, and community development, with a vast network of dealers and service providers supporting the industry.

Market Segmentation

Australia Automotive Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Vehicle Type

• Passenger Cars 

• Commercial Vehicles

Market Breakup by Engine Type

• Electric Vehicle

• Hybrid Electric Vehicle

• Plug-in Hybrid Electric Vehicle

• Mild Hybrid Vehicle

• Natural Gas Vehicle

• Fuel Cell Electric Vehicle

• Diesel Vehicle

Market Breakup by Region

• New South Wales

• Victoria

• Queensland

• Western Australia

• Australian Capital Territory

• Others

Competitive Landscape

Key players in the market offer products and services through imports and as well as mergers and acquisitions in the market.

• Volkswagen Group Australia Pty Ltd 

• Hyundai Motor Company Australia Pty Limited    

• Ford Motor Company of Australia Pty Limited     

• Toyota Motor Corporation Australia Limited    

• Volvo Car Australia Pty Ltd     

• RVDA Pty Ltd       

• Others

Key Highlights of the Report