Q: Did your members face any challenges during the COVID? Elaborate.

Charity: As the pandemic started to impact Australia in February, our members initially faced the uncertainties of the virus itself and how that would affect their businesses, customers, employees, and the economy. State and Territory Governments then started imposing various levels of restrictions on people movement and trade. This affected (to varying degrees) large portions of manufacturing, distribution, retail, and automotive service and repair across the country.

Our members then faced the challenge of interpreting hastily constructed and not always coherent new regulations and sought answers to whether they could remain open, and if so to what degree.

Businesses also had to navigate the various Government assistance options available, make difficult decisions around staff, faced the loss of revenue and customers and worried about the short-term survival of their businesses.

Following a national lockdown from March through to May, Australia regained control of infection numbers, and once restrictions started easing businesses exhibited substantial recoveries. However, the state of Victoria (the second largest in Australia) was hit with a second, much larger COVID-19 wave in June. The Victorian Government responded by imposing a hard lockdown of metropolitan Melbourne which ran from July until the end of October. It is only now that restrictions are slowly being wound back, that Melbourne based businesses can start their process of recovery.

Q: What are the learnings for AAAA from the pandemic and how the association supported its members during this time?

Charity: We were proactive in our approach to the pandemic, but of course no one was fully prepared for how events would turn out and the scale of the impact on our economy.

As the first wave hit, we received an unprecedented influx of members and the broader industry who turned to the AAAA seeking information and assistance. Our primary role was to influence and interpret Government regulations and support offerings and provide clear and timely information to our members. Regular, accurate updates assisted our members in making the best decisions and receiving the Government support they needed.

Due to the high level of demand for this information, we had to adapt and further strengthen our communication methods quickly. We added online webinars to our repertoire of communication channels to provide information to as many people as possible. Webinars provided the additional benefit of allowing direct, live member Q&A sessions.

Members had direct access to our advocacy team during the crisis, and the team were inundated with individual requests and queries asking for advice concerning the pandemic, the Government response and their particular situation.

We were successful in lobbying Government to classify automotive repair as an essential service. As a result, the majority of our industry stayed open throughout the year, and we have lost very few staff from the industry, which is a remarkable achievement.

The innovation that was displayed right across the sector was inspiring-mechanical workshops implemented contactless drop-off and pick up systems, adopted SMS and digital communications to inform their customers that they were still open and implemented a range of process changes to ensure the safety of their staff and customers.

Our parts supply chains had to deal with working from home arrangements, scaled back staffing in distribution centres and a whole range of logistical challenges to ensure the trade had the right part, at the right time for the right price.

Automotive retailing also held up remarkably well right throughout the year as people with disposable income and extra time worked on their cars.

We also learned how resilient our industry is. Despite the challenges, we saw incredible resolve, determination and support across the industry and ‘being in this together’ unified everyone toward common goals, putting aside competitive rivalries for the greater good.

Q: How are online sales in the automotive parts retail segment evolving in Australia?

Charity: While online sales of automotive parts and accessories have grown over the past five years due to the strong consumer uptake of online shopping in general, they still make up less than five percent of the overall market. The diversity of the Australian car parc and the need to ensure parts meet exact specifications means that many consumers and trade customers still buy from traditional bricks-and-mortar retailers and resellers. Having said that, outside of the online marketplaces such as e-Bay, the majority of online sales are through the large traditional retail groups such as Supercheap Auto, Bapcor (Autobarn/AutoPro) and GPC (Repco/Sparesbox). While Amazon attempted a major push into online retailing of automotive parts and accessories several years back, they have not been able to gain significant market share from the established online retailers.

Q: What is the role played by AAAA whenever issues crop between nations on Tariff etc.? Is there any impact on imports of aftermarket products from China?

Charity: We take a proactive approach to address any tariff issues that arise from time to time that have the potential to impact on our membership. An example of this was in 2019 when the Trump administration was considering imposing a Tariff of 25 percent on automotive products exported into the USA based on national security grounds (section 232). The USA is our largest export market.

We were able to lobby for our Department of Foreign Affairs and Trade to engage with their US State Department counterparts to advocate for Australia’s interests with the US Administration. This involved direct representations by Australia’s Foreign Affairs Minister as well as our Ambassador to the USA to put the position that the products that the Australian industry supply into the USA complement rather than compete with US manufacturers. Ultimately the Trump administration did not proceed with the Tariff.

We have not experienced any issues with the import of aftermarket products from China other than some isolated supply issues earlier in the year as a result of the impact of the COVID-19 on China’s manufacturing sector.

Q: The connected vehicle is a boon for the users; how is it for the aftermarket industry?

Charity: Similar to other new technologies, connected vehicles present new opportunities for the aftermarket; however, at the same time, challenges have presented themselves. Over the years as vehicles include more and more electronics, both hardware and software, it has made it more difficult for independent service and repair workshops to access software updates and repair and service information from car manufacturers. This has a flow-on effect on their ability to compete with dealerships on fair and reasonable terms in servicing and repair of vehicles. We have campaigned for over ten years to have a law implemented that compels the manufacturers to share this data. In great news, a mandatory data sharing law will be introduced in Australia in 2021, which will force all car companies to share all repair and service information with all repairers on fair and reasonable commercial terms.

Despite the advances in the connected car, the fundamentals of vehicles have not changed. Components need service and repair, and vehicles remain open to all manner of modifications and customisation. In Australia, changing government regulations can impose challenges regarding the modification of vehicles; however, we have a constructive dialogue with regulators to ensure our members can continue to offer safe accessories and modifications for vehicle owners.

Q: What percentage of sales in Australia account for electric vehicles? What is the current EV parc? How does AAAA support its members in catering to the requirements of these new breed vehicles?

Charity: Electric vehicles continue to gain some popularity with sales volumes increasing year on year; however, they remain a tiny part of the Australian car parc. Electric vehicles account for only about 0.6 percent of the Australian market currently. Sentiment wise, consumers are more receptive towards owning an EV vehicle than five years ago. The main challenges we face are the lack of EV charging infrastructure and the vast distances involved in Australian road networks, as well as the price of EV’s compared to the equivalent internal combustion engine model. We don’t foresee any sizeable shift in the change to the car parc in relation to EV’s for at least another ten years.

At an AAAA-member support level, we are beginning to host information and training evenings that focus on EV safety and specific servicing requirements and monitor any changes in the car parc or Government regulations around EV’s that may have an impact on the industry.

Q: Can you briefly tell us about your initiatives in building professional skills to your members?

Charity: One of the core principles of the AAAA is to ensure member sustainability and foster member growth, with skills development an important component of this.

At Government level, we support and advocate for issues around skills and training. In Australia, there is a shortage of skilled labour, and our industry needs more apprentices to choose automotive as a career. Along with Government advocacy on these issues, we are increasing our work on strategies at an industry level to drive new apprenticeship levels and interest in what is a fantastic and diverse industry.

AAAA members are exposed to regular AAAA training and networking evenings, designed to educate and build skills of those in our industry. Our member webinars are often themed toward skills development with topics including local area marketing, cash flow and business efficiency.

We also provide business development tools and services to members. This includes access to our advocacy team, market research, including our Car Parc Data tool and Workshop Health Check, and hotlines for human resource and legal matters.

Q: Can you update on the “Automotive Innovation Labs” that AAAA established in Victoria and South Australia a couple of years ago?

Charity: The Auto Innovation Centre (AIC) is just about to celebrate its first birthday in Victoria, while the facility in South Australia is close to being opened. The Melbourne facility contains cutting-edge testing and scanning equipment, workshop facilities and other manufacturing and development capabilities for our industry to utilise, plus a fleet of new vehicles for product development.

The AIC is already the go-to facility for many Australian businesses seeking assistance with product development thanks to its unique capabilities. The AIC conducts regular Electronic Stability Control and Brake Testing to ensure products such as suspension and braking systems meet Australian Design Rules. 3D Scanning is another popular service offering, with a soon to be launched database of vehicle scan data available to subscribers. The AIC also hosts businesses that run training, networking and information evenings and the fully equipped workshop is used by companies for product fitting sessions using the AIC vehicle fleet.

Q: What is your outlook for the growth of the aftermarket in the next five years?

Charity: We are very positive about the growth outlook in the aftermarket over the next five years as all the key drivers that we look at to assess future demand in our industry is positive. These include:

The fact that Australians are still very reluctant to use public transport like they did in the past which has driven up the price of second-hand cars as families buy a second or even third car to ensure they can get to where they need to be without relying on transport.

New car sales that had already experienced two consecutive years of month-on-month declines have been decimated this year. This will drive up the average age of vehicles meaning that a greater proportion of vehicles will and are being serviced in the independent aftermarket.

With many interstate borders still closed and international borders shut for the foreseeable future, we are seeing the return of the family road trip which has seen a massive boom in the sales of 4WD accessories and vehicle modification services.

To further support these market dynamics, the imminent introduction of a national mandatory data-sharing law will lay the foundation for further strengthening of the independent service and repair sector moving forward.

So while 2020 is a year that we’d all rather forget, we are experiencing strong demand for our products and services across all segments of the aftermarket and we are projecting this to be sustained over the next five years. (MT)

Tata Motors, a leading passenger vehicle manufacturer, has added another feather to its cap, bagging two Red Dot Design Awards for the Avinya X Concept and Sierra Concept models. Martin Uhlarik led the in-house design for both models.  

The Red Dot Design Award, which was established in 1955, assesses design quality across three categories: Product Design, Brands & Communication Design and Design Concept. The competition has operated for nearly 70 years under the current brand structure developed in the 1990s by Red Dot CEO Professor Dr Peter Zec.

The Avinya X Concept first showcased at Bharat Mobility 2025 was recognised for its innovation through its design, stance and proportions. The vehicle features technologies such as matrix LED lighting, aero enhancements and wheels, which boost efficiency and emphasise its elegance. Its silhouette and enclosed surfaces balance strength, power and off-road capability while offering cabin space.

The interior is designed to rejuvenate mind and body, blending craftsmanship with wellness. Cabin details include fabric-wrapped soundbars, aroma diffusers and lounge-style rear seating. The dashboard integrates technology, providing information while minimising distractions for a driving experience. The Samudra exterior colour, paired with protective accents and detailing, enhances the concept's presence. The rear interior, crafted from materials, offers a lounge-like experience.

On the other hand, the revived Sierra design captures the charm of the original while embracing sophistication, balancing nostalgia with elegance. The rear glass has been reimagined as a combination of a finisher along the roofline and a panoramic sunroof to recreate the illusion of glass. This design gives the concept a roof appearance while meeting safety standards.

The exterior features surfaces that convey confidence and elegance. Haunches and a shoulder line contribute to a stance, reflecting the vehicle’s character. The rear is designed to express width and stability, with a tailgate that reinforces the stance. This design enables taillights. A D-pillar enhances the roof effect, creating continuity and flow.

A traffic management initiative, undertaken by the Institute of Road Traffic Education (IRTE) for Gurugram Traffic Police and supported by the Hyundai Motor India Foundation (HMIF), aims to improve traffic management across 22 major intersections in Gurugram.

A scientific audit for these 22 intersections was completed by the Traffic Engineering Centre (TEC) and Organisation Development Centre (ODC), established by IRTE for the Gurugram police. Work to improve traffic management at two intersections, Rajiv Chowk and Shankar Chowk, has begun.

Dr Rohit Baluja, President, IRTE, said, “The Traffic Engineering Centre (TEC) has been designed to scientifically audit develop sustainable traffic management system for Gurugram under the aegis of the Gurugram Traffic Police, where IRTE's Road Safety Engineers observe traffic movement, violations, and behavioural issues of vulnerable road users, along with studying the causative factors related to congestion. These will be monitored and analysed through camera inputs of 218 junctions with the valuable support of the ICCC Gurugram.”

Under the Easy roads project, the IRTE team provided support to the Gurugram Traffic Police for:

• Conducting safety and traffic engineering audits across 22 major junctions and intersections.
• Reviewing and improving 15 km of key road stretches prone to congestion and risk.
• Rectifying identified blackspots to reduce accident occurrences.
• Developing safety and traffic management measures for school zones.
• Conducting feasibility studies on stakeholder proposals related to road safety and mobility.

Vikas Arora, Commissioner, Gurugram Police, said, “In coming days Gurugram police will increase enforcement by deploying 10-15 officers at each traffic violation spot across the city for a week to challan and stop violations. The Gurugram police has also increased challans for drunk driving as 30,000 challans were issued in a year as compared to 4000 in previous year. 32 black spots have been recognized in Gurugram and are being rectified by improving road engineering and signages”.

Saurabh S. Shrama, of Hyundai Motor India, said, “This initiative marks a significant step toward a data-driven and scientific approach to traffic management. Through collaboration with enforcement agencies and the application of forensic methodologies, we can ensure more sustainable and effective road safety interventions.”

Iron Mountain, a global leader in information management services, has become an Official Partner of the McLaren Formula 1 Team, kickstarting a new multi-year partnership that will commence at the 2025 United States Grand Prix. The collaboration will leverage Iron Mountain’s expertise to spearhead a digital transformation of McLaren Racing’s legendary heritage archive.

Utilising an advanced AI-powered platform, the project will convert priceless historical materials, including vintage photography, film and technical blueprints, into an intelligent and dynamic digital resource. This initiative is designed to unlock new value from these assets, enabling McLaren to share its iconic history with a global audience. By creating new and immersive stories, the team aims to connect fans and partners more deeply to its legacy and the sport.

Furthermore, McLaren will utilise Iron Mountain’s global leadership in the secure and efficient management of end-of-life IT assets. As part of the agreement, Iron Mountain branding will be featured on the team’s race cars beginning in Austin, with additional visibility planned throughout the 2025 season and beyond.

Nick Martin, Co-Chief Commercial Officer, McLaren Racing, said, “Our fans are at the centre of what we do, and we are passionate about sharing our storied past with them. With the integration of Iron Mountain, we will be able to bring to life more of the team’s rich history for our fans and partners as we look to shine a light on the McLaren Racing brand.”

Greg McIntosh, Executive Vice President & Chief Commercial Officer, Iron Mountain, said, “We are proud to partner with the McLaren Formula 1 Team, which embodies the spirit of innovation and high performance at Iron Mountain. Our AI-enabled digital platform will help to fuel new opportunities for success and transform McLaren Racing’s iconic heritage media – protecting these timeless assets for future generations, connecting them to fans and partners and activating them to unlock value like never before.”

The latest wholesales data shared by the Society of Indian Automobile Manufacturers Association (SIAM) for Q2 FY 2025–26 shows mixed domestic performance across segments, but strong growth in exports.

During Q2, passenger vehicle sales stood at 1.04 million units, down 2 percent compared to 1.05 million units last year. However, sales in September 2025 were up by 4 percent, with SUV segment with 204,938 units, down 1 percent YoY, accounting for around two-thirds of sales.

Two-wheelers posted sales of 5.56 million units, a growth of 7 percent YoY, supported by higher economic activity and the positive impact of a GST rate reduction. The scooter segment grew by 12 percent, compared to 5 percent YoY growth in motorcycles.

Three-wheelers recorded their highest-ever Q2 sales of 229,239 units, with a growth of 8 percent YoY, driven by the Passenger Carrier sub-segment’s 12 percent growth YoY.

Commercial vehicles sales stood at 239,781 lakh units, reflecting a growth of 8 percent YoY. Growth was broad-based, with Medium & Heavy Commercial Vehicles (MHCVs) and Light Commercial Vehicles (LCVs) both showing improvement.

AUTOMOTIVE SALES IN INDIA
Segment	Q2 FY'26	Q2 FY'25	Change (in units)	Change (YoY)
Passenger Vehicles
Passenger cars	318,895	318,805	90	0%
SUVs	683,014	697,569	-14,555	-2%
Vans	37,291	38,763	-1,472	-4%
Total PVs	1,039,200	1,055,137	-15,937	-2%
Three-Wheelers
Passenger Carrier	194,204	172,855	21,349	12%
Goods Carrier	29,387	27,656	1,731	6%
E-Rickshaw	4,069	7,227	-3,158	-44%
E-Cart	1,579	980	599	61%
Total Three-wheelers	229,239	208,718	20,521	9.8%
Commercial Vehicles
M&HCV
Passenger Carrier	13,717	13,416	301	2%
Goods Carrier	74,332	69,524	4,808	7%
Total M&HCV	88,049	82,940	5,109	6%
LCV
Passenger Carrier	11,752	11,864	-112	-1%
Goods Carrier	139,980	126,659	13,321	11%
Total LCV	151,732	138,523	13,209	10%
Total Commercial Vehicles	239,781	221,463	18,318	8%
Two-Wheelers
Scooter	2,059,957	1,832,306	227,651	12%
Motorcycles	3,370,495	3,209,965	160,530	5%
Mopeds	131,625	137,078	-5,453	-4%
Total Two-wheelers	5,562,077	5,179,349	382,728	7%
Quadricycle	0	28	-28	-100%
Grand Total	7,070,297	6,664,695	405,602	6%

The industry enters the second half of FY 2025–26 with renewed cheer, supported by the festive season momentum, stable macroeconomic conditions and GST 2.0 reforms. The extended festive and wedding season is expected to sustain growth momentum through Q3.

Shailesh Chandra, President, SIAM, said, "The GST 2.0 reform is a landmark decision of the Government of India, which apart from catapulting the Indian auto industry to the next level, would bring in vibrancy in the entire economy, as this industry is closely intertwined with strong forward and backward linkages. Inspite of the new GST rates coming into effect from of September, i.e. only for 9 days of the month, Passenger Vehicles, Two-Wheelers and Three-Wheelers have already posted their highest ever sales of September. In addition, very strong exports growth, in all segments in Q2, indicates the growing brand acceptance on Indian made vehicles. Looking ahead, the outlook for the sector remains encouraging on the back of key tailw