The automotive market is divided into two distinct areas. Original Equipment refers to all of the materials which are supplied to the vehicle assembler to be fitted on the vehicle - essentially everything that goes into a vehicle before it leaves the showroom. Aftermarket Equipment refers to all of the goods and services which are consumed by vehicles after they have left the dealer's showroom.
There are over 10.5 million vehicles on Australian roads covering one of the most diverse range of brands and models in the world.
The Australian automotive components industry is essential in keeping these vehicle on the road by providing everything from replacement parts such as tyres, batteries, brakes, clutches, shock absorbers, and windscreens, to items to help people make a statement about their individual automotive dreams - whether it be mag wheels, a sound systems, racing seats, or high performance suspension, tyres or engine components.
Australia loves its cars. We have the third highest vehicle ownership rate in the world at over 600 vehicles per 1000 people. Australia also has one of the oldest 'car parcs' in the world, at an average age of 10.8 years.
The Australian aftermarket for replacement parts and accessories for these vehicles is a very significant element of Australian component producers' total sales. The market is estimated to be worth between $5 and $6 billion and is split fairly evenly between local producers and imports.
Exports of aftermarket equipment, worth over $200 million, account for 21% of all exports by component producers.
Demand in the aftermarket is particularly influenced by enforcement of cars' compliance with design rules, emission and safety standards and the tax treatment of parts and accessories.
There is a close correlation between local vehicle manufacture and opportunities for Australian suppliers in meeting the aftermarket requirements for the cars on our roads today.