Australia - Country Commercial Guide
Automotive Parts

This is a best prospect industry sector for this country. Includes a market overview and trade data.

Last published date: 2021-08-16

Overview

Australia’s auto market is mature, with modest growth expected going forward. In 2020, 916,968 million new passenger cars, SUVs, and commercial vehicles were sold in the local market (down from 1,062,867 in 2019). Sales of SUV’s accounted for 49.6% of the market, Passenger cars for 24.2%, light commercial vehicles 22.4%, and heavy commercial vehicles 6.4%. New vehicles must be sold in right-hand drive.

Top Passenger Vehicle Brands 2020

  • Toyota (204,801)
  • Mazda (85,640)
  • Hyundai (64,807)
  • Ford (59,601)
  • Mitsubishi (58,335)
  • Kia (56,076)
  • Volkswagen (39,266)
  • Nissan (38,323)
  • Subaru (31,501)
  • Mercedes-Benz (29,455)

Top 10 Vehicle Models

  • Toyota HiLux (45,176 units –5.2% on 2019)
  • Ford Ranger (40,973 units no change on 2019)
  • Toyota RAV4 (38,357 units +58.8% on 2019)
  • Toyota Corolla (25,882 units –15.1% on 2019)
  • Toyota Landcruiser (25,142 units +9.2% on 2019)
  • Mazda CX-5 (21,979 units -15.1% on 2019)
  • Hyundai i30 (20,734 units -26.9% on 2019)
  • Mitsubishi Triton (18,136 units -29.8% on 2019)
  • Toyota Prado (18,034 units -1.6% on 2019)
  • Kia Cerato (17,559 units -19.3% on 2019)

Other Vehicles of Note

  • Isuzu D-Max (15,062 -10.8% on 2019)
  • Nissan Navara (11,486 units -14.4% on 2019)
  • Toyota Landcruiser 70 Series (10,064 units +9.1% on 2019)
  • Mazda BT-50 (9,588 units -15.6% on 2019)
  • Holden Colorado (7,559 units -56.7% on 2019
  • Isuzu MU-X (7,049 units -16.3% on 2019)
  • Volkswagen Amarok (6,349 units – 24.2% on 2019)
  • Ford Everest (5,996 units +12.4% on 2019)
  • BMW 3 (3,406 units +8.6% on 2019)
  • Ram 1500 (3,299 units +26.4% on 2019)
  • Ford Mustang (2,923 units -26% on 2019)
  • Jeep Grand Cherokee (2,870 units -3.9% on 2019) (Total Jeep Sales in 2020 – 5,748)
  • Nissan Patrol (2,820 +44.5% on 2019)
  • Mitsubishi Pajero (2.399 units 15.6% on 2019)
  • Mercedes-Benz X-Class (2,386 +12.2% on 2019)

Source:  Federal Chamber of Automotive Industries; Australian Bureau of Statistics

Australia is the ninth largest destination for U.S. auto parts exports. The market has relatively few barriers for U.S. companies. Ford, GM Holden, and Toyota have now ceased manufacturing vehicles in Australia. All vehicles are now imported.

The Australian aftermarket for replacement parts and accessories is estimated to be worth around US$8.6 billion and is split fairly evenly between local manufacturers and imports of aftermarket parts. Annual Australian exports of aftermarket parts are estimated by the Australian Automotive Aftermarket Association (AAAA) to be US$1.4 billion.

U.S. auto parts exports to Australia were valued at US$1.6 billion in 2020. China is the largest source of imports of auto parts followed by the U.S, Japan, Thailand, Germany, and Korea.

Automotive Parts Trade Data: 2018 - 2021 est.

 

2018

2019

2020

2021 (Estimated)

Total Local Production

5.14

5.16

5.20

5.35

Total Exports

1.20

1.25

1.25

1.27

Total Imports

4.33

5.00

4.50

4.45

Imports from the US

1.60

1.70

1.66

1.85

Total Market Size

8.27

8.60

8.45

8.53

Exchange Rates

.74

.77

.77

.77

Unit: US$ Billions

(total market size = (total local production + imports) - exports)

Data Sources:

Total Local Production: Industry estimates

  • Total Exports: Industry estimates
  • Total Imports: Industry estimates
  • Imports from U.S: Industry estimates

Leading Sub-Sectors

The performance market can be divided up into a number of sub-sectors with the first being performance and aftermarket parts for new vehicles. These vehicles include the Ford Mustang, Jeep Cherokee and Wrangler, Chrysler 300C, as well as European brands including Audi, Porsche, Jaguar, and Mercedes Benz; as well as Japanese manufacturers Toyota, Honda, Mitsubishi and Mazda. Performance parts are also in demand for Australian-manufactured performance vehicles from Ford and GM Holden including the Commodore and the Falcon. The third part of the performance market is supplying parts to the very healthy local motorsport market which includes drag racing, circuit racing, off road racing, and powerboat racing.

Possibly the most promising sector is the off-road market. With its vast tracks of outback and a large unfolding market as witnessed by the numbers of Hilux/Rangers sold in the local market, consumers are keen to customize their light trucks. Popular accessories include upgraded suspension components, bull bars, roof racks, carrying racks, upgraded lighting, rims, bed liners, and shock absorbers. Popular brands in the local market include Toyota Hilux, Ford Ranger, Mitsubishi Triton, Holden Colorado, Toyota Prado, Nissan Navara, Jeep Grand Cherokee, Isuzu D-Max, Mazda BT-50, and Toyota Land Cruiser 200 Series. VW is also making solid inroads with the Amarok. Jeep’s Gladiator was introduced into the market in mid-2020.

Opportunities

U.S. manufacturers have a good reputation in Australia for making high-quality, well-engineered auto aftermarket and specialty products. The best segments for U.S. manufacturers in the local market include supplying aftermarket performance parts, off-road and light truck accessories, repair tools, and consumables.

U.S.-made pickups such as the Ford 150/250, GM Silverado, Toyota Tucson and Dodge Ram are not imported into Australia by the major manufacturers.  They are imported by private companies and converted locally to right-hand drive. Due to the high cost of conversion, there are relatively few of them on Australian roads. However, at a converted price point of sub AU$100,000, the Ram sells in higher numbers than its competitors.

Currently, there are relatively few barriers to exporting automotive products to Australia. If products can be classified as automotive items of minimum 51% U.S. content, there are no customs tariffs under the Australia-U.S. Free Trade Agreement. Documentation stating the rules of origin should accompany the shipment of goods.

Vehicle compliance is handled by the Australian state in which the vehicle is to be registered. Compliance can sometimes be more onerous than in the United States. The Australian Design Rules (ADRs) are the guiding principles in terms of compliance in Australia and sometimes small modifications can require a construction engineer’s report to ensure the vehicle complies with ADRs.

Resources

  • Australian Automotive Aftermarket Association
  • Australian Customs Service
  • Department of Infrastructure and Transport
  • Federal Chamber of Automotive Industries
  • Federation of Automotive Parts Manufacturers