This report examines the restructuring of Australia's automotive sector, focusing on the shift from domestic manufacturing to a post-production, import-based market, and the growth of the aftermarket sector. 

It presents data collected from a multi-year project which investigated the spatial and economic aspects of restructuring the automotive sector, with a specific focus on the repair and maintenance industry and the changing requirements of the workforce. The report identifies the significant contribution of aftermarket automotive sales and services to the economy, and flags a growing skills shortage as the market turns increasingly to electric vehicles (EVs).

Key findings

• The aftermarket sector is a significant part of the Australian economy, with car maintenance and repair the single largest industry.
• Modern vehicles are increasingly complex, leading to new challenges for repair and maintenance.
• There is a growing skills shortage in the automotive trades.
• Consumers are highly dependent on cars but face rising costs and new challenges with EVs.
• Independent mechanic shops are losing aftermarket share and closing at an alarming rate.
• The aftermarket contributes significantly to dealership profits.
• EVs have lower scheduled maintenance costs but higher insurance premiums, costs of parts, and greater depreciation.
• Telematics data presents opportunities and risks in terms of vehicle management and data privacy.