AAAA Is Positive On Growth Outlook Over The Next Five Years

Need for scrap tyre disposal policy

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)

Cedric Ratinaud Becomes New Global Brand Head Of Nissan Motor Corporation

Cedric Ratinaud

Japanese automaker Nissan Motor Corporation has announced the appointment of Cedric Ratinaud as the new Global Head of Brand, Nissan.

Ratinaud previously served as the Director of Creative and Campaigns for Global Communications at Nissan Motor Corporation, a role he held from April 2024. Prior to that position, he worked as General Manager of INFINITI Global Communications. His background includes two decades in the automotive sector across communications, marketing communications, and brand management roles.

His career at Nissan spans operations across Europe, Asia, and Oceania. Most recently, he served as General Manager of Brand, Marketing, and Communications for Nissan Motor Asia Pacific, operating out of Thailand.

TVS Supply Chain Solutions, Japan’s Sankyu Inc. Ink Strategic MoU

TVS SCS - Sankyu

TVS Supply Chain Solutions has signed a Memorandum of Understanding with Japan-based Sankyu Inc. to collaborate across supply chain and engineering services.

As part of the agreement, Sankyu intends to acquire a 0.5 percent equity stake in TVS Supply Chain Solutions, subject to regulatory approvals.

The partnership combines TVS Supply Chain Solutions' logistics network in India with Sankyu's engineering capabilities and corporate connections in Japan. Initial operations will focus on serving manufacturing and industrial clients in India, where over 1,400 Japanese companies operate.

Future plans include expanding joint operations into regions across Asia, the Middle East, Africa and additional international markets where both firms hold established infrastructure.

To manage operations under the agreement, the companies will form a joint steering committee with representatives from both organisations to identify operational opportunities and oversee joint initiatives.

R. Dinesh, Chairman, TVS Supply Chain Solutions, said, “This partnership represents an important step in our strategy to strengthen our capabilities and create greater value for customers. Sankyu's engineering expertise and deep relationships across the Japanese industrial ecosystem complement TVS Supply Chain Solutions' integrated supply chain capabilities, strong customer relationships and market presence. We share a strong commitment to long-term value creation, and together we are well positioned to deliver more comprehensive solutions, support the evolving needs of manufacturing and industrial customers, and unlock new growth opportunities across India and other strategic markets.”

Kimihiro Nakamura, President and CEO, Sankyu Inc, said, "Since our inception in 1918, Sankyu has been dedicated to supporting the progress of the manufacturing sector, underpinned by our core philosophy of valuing our people. We are profoundly honoured to enter into this partnership with TVS SCS, an organisation that shares our philosophy and commitment to the highest ethical standards. Our two companies possess a strong strategic alignment, and by integrating and complementing our respective strengths, we look forward to achieving collective growth in the global market and contributing to sustainable industrial development."

VinFast Elevates India Head Tapan Ghosh To Oversee Operations In Indonesia

VinFast - Tapan Ghosh

Vietnamese automotive company VinFast has expanded the role of its India Chief Executive Officer, Tapan Ghosh, to oversee operations in Indonesia, uniting the company's management structure across both regional markets.

Interestingly, Ghosh becomes Chief Executive Officer for VinFast Operations across both countries, making him the first executive from India to manage multiple markets for the Vietnamese company.

Since joining the Vietnamese brand in 2025 from Hyundai Motor India, Ghosh has managed local manufacturing setups, dealership distribution expansion and product strategies. His new responsibilities will include overseeing the development of a complete knock-down (CKD) assembly operation in Indonesia.

The dual-country manufacturing and distribution setup establishes operational hubs for VinFast across South Asia and Southeast Asia, supporting its strategy to expand production beyond Vietnam.

An Cong Hui Succeeds Li Shu Fu As Chairman Of Geely, Gan Jia Yue Becomes CEO

Geely

Chinese automotive major Geely Automobile Holdings has announced changes to its board of directors and executive leadership structure, effective 18 August 2026, as part of its succession planning framework.

Li Shu Fu has resigned as Chairman of the Board and Executive Director to focus on other business commitments. He has accepted an appointment as Honorary Chairman for Life, a role outside the formal corporate governance structure. Li remains a controlling shareholder of the company and confirmed that he has no disagreement with the board regarding his departure.

On the other hand, Executive Director An Cong Hui has been appointed Chairman of the Board. The board cited An's operational experience within the group and strategic alignment with the controlling shareholder entity as factors supporting the appointment. Independent non-executive directors will continue to oversee potential conflict management protocols under Hong Kong Stock Exchange listing rules.

Further board adjustments include the resignation of Li Dong Hui, Daniel, from the role of Vice-Chairman. He retains his seat as an Executive Director. Gui Sheng Yue has stepped down as Chief Executive Officer and assumed the role of Vice Chairman while remaining an Executive Director.

Following Gui's transition, Executive Director Gan Jia Yue has been appointed Chief Executive Officer. Gan assumes responsibility for managing the group's operational activities and executing long-term business objectives.