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)

VSL PowerHive Pvt Ltd has unveiled the P261, a liquid-cooled battery storage system rated at 125 kW/261 kWh, targeting industrial and commercial customers in India and other global markets. The announcement represents the company's first official product launch under its own branding, distinguishing it from the earlier VION offering. This move positions the Vikram Solar subsidiary for accelerated growth in the competitive energy storage arena.

The newly introduced unit tackles operational requirements including emergency power provisioning, load smoothing during expensive tariff periods and maximised solar generation utilisation. Additional functions include curtailment of diesel generator usage, stabilisation of power quality, accommodation of EV charging points and enabling of microgrid networks. By drawing upon Vikram Solar's production capabilities, the company intends to serve clients navigating different phases of decarbonisation.

Compact cabinet construction combines with active liquid thermal management to preserve electrochemical stability and prolong service life relative to air-cooled designs. A built-in controller provides live system oversight and off-site troubleshooting, complemented by automated extinguishing mechanisms and redundant protection circuits. The modular layout permits future augmentation and merges photovoltaic inputs, mains connectivity, storage hardware and EV supply under one operating platform.

Embedded within the chassis is a 261 kWh lithium iron phosphate core with 832V nominal voltage and 314 Ah cells, facilitating rapid energy exchange in both grid-tied and standalone modes. Functional operation spans from -30°C to 50°C, with an IP52S enclosure safeguarding against particulate and moisture ingress. Practical benefits include diminished demand charges, intelligent solar shifting and resilient backup during grid failures. The system also supports fuel savings, fast-charging rollouts and power conditioning across distributed and bulk applications. Through the P261, VSL PowerHive addresses surging C&I storage demands while signalling future expansion across diverse market tiers.

Arun Mittal, CEO, VSL PowerHive Pvt. Ltd., said, "India's industrial and commercial sectors are ready for storage solutions that actually work for their needs, and the P261 answers that call. Bringing this to market as our first official product under PowerHive is a significant step, and there's much more in the pipeline."

Gyanesh Chaudhary, Chairman and Managing Director, Vikram Solar, said, "India’s energy transition is entering its most decisive phase, and storage will determine how fast and how far we go. With the P261, PowerHive moves from concept to commercial reality, built on the same manufacturing discipline and quality rigour that have defined Vikram Solar’s journey in solar. This is more than a product launch; it is the foundation of a business we intend to scale with real ambition as we work towards building PowerHive into a full-fledged storage solutions provider serving India and global markets in the years ahead."

European auto major Stellantis has announced leadership changes within its Enlarged Europe organisation, effective 1 September, as part of the execution of its Fastlane 2030 strategic plan. The newly appointed executives report directly to Emanuele Cappellano, Chief Operating Officer (COO) for Enlarged Europe.

The company has announced that Arnaud Belloni will take on the role of Chief Executive Officer of the FIAT, Abarth and Lancia brands, alongside taking on the role of Chief Marketing Officer for Europe. He returns to Stellantis, where he previously spent 16 years managing marketing strategy for its Italian and French brands, after serving as global Chief Marketing Officer and Chief Branding Officer at Renault Group. He succeeds Olivier Francois, who will assist with the leadership transition through mid-October before taking up a role as a company strategic advisor.

Among other executive changes, Xavier Chardon has been appointed CEO of DS Automobiles while retaining his responsibilities for Citroen. Xavier Peugeot has been named Head of the Jeep brand in Europe, a newly created position focused on product, marketing and sales development within the European market. Meanwhile, Roberta Zerbi will focus on customer journey excellence and network development.

Under the reorganised Commercial Operations Enlarged Europe division led by Maurizio Zuares, Gaetano Thorel assumes responsibility for Enlarged Europe Lancia alongside his current duties for FIAT and Abarth, reporting functionally to Belloni. Laurent Diot takes responsibility for Enlarged Europe DS Automobiles alongside Citroen, reporting functionally to Chardon. Fabio Catone remains responsible for Enlarged Europe Jeep, Ram, and Dodge brands, with a functional reporting line to Peugeot.

Emanuele Cappellano, COO, Enlarged Europe, said, “These appointments mark another important step in accelerating the execution of our Fastlane 2030 strategic plan. They establish the foundations for a European marketing vision centered on creativity and innovation, reinforce Jeep’s growth through dedicated leadership, and clarify the positioning of Lancia and DS Automobiles as specialty brands, preserving their distinctive identities while strengthening integration with FIAT and Citroen, respectively. I would like to congratulate Arnaud as he joins Stellantis, together with all the colleagues taking on new and more challenging responsibilities. I am confident that each of them will play a vital role in delivering these strategic priorities. I would also like to thank Olivier for his outstanding contribution to the Company over more than 30 years managing iconic brands and shaping communication as Global Chief Marketing Officer. Olivier has embodied the perfect balance between dedication and empathy, combining a proactive mindset with unconventional spirit that truly sets exceptional creative leaders apart. I am sure we will take advantage from his expertise as a strategic advisor to our Company”.

ICRA, a leading rating agency, has released a report stating that toll collection growth on national highways across India is projected to increase between 10 percent and 12 percent in 2027-28, up from an estimated 7 percent to 9 percent in 2026-27.

The projected recovery follows an expansion of 10 percent in 2025-26 and is expected to be supported by toll rate revisions alongside stable traffic growth of 4 percent to 5 percent.

The anticipated rise in toll rates in 2027-28 reflects movements in Wholesale Price Index inflation. Toll rate growth is projected at 6.2 percent to 6.4 percent for newer projects linked to December index figures, and 4.5 percent to 5.5 percent for older projects linked to March figures.

Suprio Banerjee, Co-Group Head, Corporate Ratings at ICRA, said: “Traffic growth on national highways largely moves in line with the gross value added (GVA) of construction, mining and manufacturing (CMM). GVA growth of CMM has increased by a notable 8.1% in 2025-26. Consequently, traffic on national highways witnessed a healthy growth of 6%. Coupled with a toll rate hike, toll collections increased by 10% in 2025-26. ICRA estimates the GVA growth of CMM to remain at 7-8%, which is likely to entail traffic increase of 4.5-5.5% in 2026-27, albeit partly impacted by export-related traffic challenges. This, coupled with a relatively lower toll rate revision of 3.4-4.0%, is likely to moderate toll collections growth in 2026-27. Thereafter, supported by a higher toll rate revision in 2027-28, toll collection growth is expected to increase to 10-12%.”

It further finds that road execution by the Ministry of Road Transport and Highways is expected to remain between 9,000 km and 9,500 km in 2026-27, compared to 9,380 km recorded in 2025-26.

Project execution during the first quarter of 2026-27 was affected by increases in bitumen prices and supply disruptions linked to events in West Asia. While, project awarding activity by the Ministry declined to approximately 7,000 km in 2025-26 from 7,538 km in 2024-25, following focus on land acquisition and environmental clearances prior to project allotment.

Budgetary allocations are expected to increase project awarding to between 8,000 km and 8,500 km in 2026-27.

Engineering, procurement and construction contracts accounted for 65 percent to 70 percent of total project awards in recent years, while hybrid annuity mode contracts represented 25 percent to 30 percent.

ICRA projects the share of hybrid annuity contracts to be between 24 percent and 26 percent in 2026-27, as projects exceeding INR 5 billion are directed toward hybrid annuity or toll models. The Ministry has introduced a revised model concession agreement for build-operate-transfer toll projects, featuring revenue support mechanisms during traffic shortfalls and termination provisions.

Bidding discounts for engineering, procurement and construction projects averaged median levels of -30 percent in 2024-25 and -35 percent in 2025-26, while hybrid annuity projects recorded median discounts of -16 percent and -19 percent over the same period. To address bidding margins, performance security norms were updated in June 2026, alongside plans for bundled highway project allocations.

Banerjee added, “The moderation in road execution is primarily attributable to the sustained slowdown in project awarding activity over the past three years. Consequently, road construction activity slowed down in 2024-25 and 2025-26, and ICRA expects road execution to remain in the range of 9,000-9,500 km in 2026-27. The Ministry’s move to revive the BOT (Toll) road projects through the revised model concession agreement is a welcome step and is expected to support increased private sector participation in the roads sector. However, the extent to which it translates into a meaningful revival in construction activity remains to be seen. Despite stricter bidding norms and the expected bundling of project awards, competition in the sector is unlikely to come down unless project awarding activity picks up materially.”

JSW MG Motor India, one of the leading passenger vehicle manufacturers, has announced the appointment of Parth Jindal as its new Chairman, effective immediately.

Jindal has been instrumental in the company’s strategy since the formation of the joint venture between JSW Group and MG Motor India. He has been closely involved in the product strategy, localisation and manufacturing expansion for the automaker in India.

At present, Jindal also serves as the Managing Director of JSW Cement and JSW Paints. He is also the Chairman of JSW Dulux, Chairman of JSW MG Motor India and a Director on the Board of JSW Energy.

In addition, he is the Founder of JSW Sports and Chairman and Co-Owner of the Delhi Capitals.