A Brief History of Australian Automotive Manufacturing
Australian Automotive Manufacturing has a long and rich history of production, which began in the early years of the 20th century. The automotive sector of Australia underwent significant development in the mid-twentieth century. Production houses like Ford Holden, and Toyota set up manufacturing units all over Australia. Automotive production in Australia increased in the 1970s, where it provided nearly half a million vehicles annually, making the country one of the premier car manufacturers of the world with a top 10 rank.
However, the automotive industry started experiencing some difficulties in the last two decades of the 20th and early years of the 21st century. High production costs, rising competition from imported vehicles, and changing consumer demands and tastes were some of the reasons that led to reduced production in the local auto industry. By 2009, the overall automobile production in Australia had reduced to a level of 175000, and almost all the vehicles were imported from Asia and Europe.
The shutdown of the large manufacturing units in the following decade was another turning point that has to this date repercussions in the industry. Today the automotive aftermarket industry is one of the important components of the Australian economy but the absence of local production has serious and far-reaching consequences.
The AAAA’s Plea for Support
In the middle of these challenges, the Australian Automotive Aftermarket Association (AAAA) has emerged as a leading voice that is advocating for the industry’s growth and profitability in the country. The association has been very vocal on the need for government intervention especially in trying to revive the struggling sector.
Our manufacturing industry needs clear action now to ensure we can continue to innovate and compete on the global stage. It’s been over a year since the funds were announced, and the industry is still waiting for details on how to access this critical support. The lack of progress is not only frustrating but is also putting our industry at a disadvantage.
Stuart Charity, CEO of the Australian Automotive Aftermarket Association
Key Challenges and Opportunities
The automotive sector faces a myriad of challenges, including:
- Global Supply Chain Disruptions: In a pandemic like COVID-19 is evident that the global supply chain has been fragile and impacting the availability of the components as well as the efficiency of the manufacturing process is concerned.
- Technological Advancements: There are new model development opportunities and risks associated with Advanced Driver Assistance Systems (ADAS) alongside challenges associated with electric vehicles (EVs) for Australian manufacturers.
- Stringent Regulations: These are the factors that have contributed to the increase of risks and costs of the operation of the industry due to the ever-high standards of environmental and safety measures.
Our industry is ready to evolve into the EV space, producing global quality products as we have always done, but we need a plan to ensure the government and industry are on the same page.
Said Gino Ricciuti of Australian Automotive Products Manufacturers and Exporters Council (APMEC).
A Call for Action for The Government of Australia
Thus, the Australian Automotive Aftermarket Association urges the government to intervene and take decisive action to solve the problems and support the growth and development of the automotive manufacturing industry. Specifically, the association is urging for:
- Clear Guidance and Timely Allocation: What is required for the development of this industry is a proper plan pointing to how the automotive industry will obtain the funds as have been promised and a streamlined method of applying for the funds.
- Broader Eligibility: Government grant programs should be expanded in such a way that more automotive businesses especially small and medium-sized should qualify for the grant programs.
- Investment in Innovation: Government grants should be related to the advancement of new technologies, such as electric vehicles and autonomous driving.
- A Collaborative Approach: Strong cooperation between the government and the automotive industry is needed to keep Australia competitive in the global automotive industry.
A Brighter Future Ahead
Despite these challenges, AAAA is very optimistic about looking at the Australian automotive industry and the future that lies ahead for it. With the timely and proper support of the government, the sector can not only survive but also thrive in the face of international competition. If the government unlocks the promised funding and creates a supporting environment for innovation, the Australian automotive industry can position itself as a leader in automotive manufacturing.
This appeal by AAAA is a great reminder for the government of the important role of the automobile industry in Australia’s economy. Hence, the government can play a big role by doing what is needed and paving the way for a more prosperous future in this important sector.
