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)

WACKER is presenting a portfolio of battery electric vehicle safety innovations at the Battery Show in Stuttgart, Germany, running from June 9 to June 11. Among the products featured at the company’s Hall 1, Booth K45, are a ceramifying silicone for thermal barriers, thermally conductive potting compounds for power electronics and materials under the ELASTOSIL, SEMICOSIL, SILRES and WACKER Silgel brands. The ceramifying silicone notably enhances heat and flame resistance, while the potting compounds enable effective temperature control with minimal sedimentation, allowing processing after long storage without complex pretreatment.

New potting compounds for thermal management take centre stage as another key exhibit. The spotlight falls on ELASTOSIL RT 7616 TC and ELASTOSIL RT 7624 TC, both filled addition-curing silicone elastomers that cure at room temperature, enabling energy-saving handling of large components. ELASTOSIL RT 7616 TC offers a thermal conductivity of 1.6 W/mK, while ELASTOSIL RT 7624 TC achieves 2.4 W/mK.

Thermally conductive potting compounds must balance on-spec thermal conductivity with low viscosity, but low viscosity can cause particulate fillers to sediment and cake after prolonged storage. Redispersing such fillers is time-consuming and may require special mixing equipment. WACKER has now eliminated these concerns with the optimised rheological properties of its new products, making sedimentation and agglomeration effects irrelevant for customers.

Even if fillers settle under unfavourable transport or storage conditions, standard mixing equipment can easily redisperse them. ELASTOSIL RT 7616 TC and ELASTOSIL RT 7624 TC feature low viscosities of 5,500 and 8,000 mPa•s, respectively, allowing quick, bubble-free filling of gaps as small as a few hundred micrometres. Their room-temperature curing eliminates the need for ovens regardless of component size.

These heat-resistant, low-emission formulations are primarily used in electromobility battery chargers, DC/DC converters and inverters for thermal management of discrete components like coils or inductors. Other silicones for electromobility include SILRES MK, a methyl silicone resin for mechanical and thermal barriers and ELASTOSIL CM 18x potting compounds for side potting of cells and top potting of pressure-relief vents, providing electrical and thermal insulation without impairing vent function.

ELASTOSIL R 531/60, a ceramifying silicone rubber for busbar insulation in high-voltage batteries, rounds out the offerings. This extrudable material improves electric vehicle safety by ceramifying in a fire, encasing busbars in a ceramic layer to maintain electrical insulation. WACKER is demonstrating all these solutions live at the Stuttgart exhibition.

ELANTAS Beck India Ltd. has announced a strategic push to strengthen its speciality chemicals portfolio in response to the country’s rapidly expanding data centre infrastructure sector. The company, recognised for its expertise in electrical insulation and electronic protection, aims to support the evolving technical demands of this high-growth market.

The firm’s product range includes wire enamels, high and low voltage insulation materials, varnishes, resins, potting compounds and electronic protection solutions. These materials serve critical components across data centre ecosystems, such as transformers, generators, motors, power distribution units, cooling systems, server room electronics and battery energy storage systems.

India’s data centre capacity is growing swiftly due to rising artificial intelligence workloads, cloud computing, 5G rollouts and stricter data localisation norms. As facilities shift towards higher density and always-on operations, the need for reliable electrical infrastructure has intensified, placing greater emphasis on thermal management, cooling efficiency, electronics protection and uninterrupted energy storage.

Leveraging over 70 years of experience in speciality chemicals, ELANTAS Beck India Ltd. continues to enhance its capabilities through application-driven innovation, technology transfers and ongoing material development. The company remains focused on aligning with emerging industry standards for efficiency, reliability and performance across critical electrical and electronic applications.

Anurag Roy, Managing Director, ELANTAS Beck India Ltd., said, “As India’s data centre ecosystem continues to expand, the demand for reliable and high-performance electrical infrastructure is increasing significantly. This is creating strong opportunities for advanced insulation and protection solutions across critical applications that enable uninterrupted operations of these facilities. With our proven chemistry in electrical insulation and electronic protection, ELANTAS is well-positioned to support this evolution through application-focused chemistries designed for reliability, efficiency and long-term operational performance.”

Greaves Finance, the EV-focused non-banking financial company (NBFC) subsidiary of Greaves Cotton, has announced the successful deployment of its previously sanctioned institutional debt of INR 2.23 billion.

The capital injection, executed during the April-March 2026 fiscal cycle, has accelerated the retail lending footprint of its multi-brand electric vehicle financing platform, ev.fin, scaling its physical presence to 74 cities across India. The entity plans to surpass 80 operational cities by July 2026.

The INR 2.23 billion institutional capital was raised through a calculated asset-liability mix consisting of Listed Non-Convertible Debentures (NCDs) and structured term loans. The fundraise was anchored by a consortium of tier-one institutional lenders and asset management firms, including AK Capital, Northern Arc Investment Managers, AU Small Finance Bank, Ambit Finvest, MAS Financial Services and Maanveeya.

Backed by this capital deployment and rising consumer credit demand, the company's financial metrics as of March 2026 stand at INR 5.22 billion of Managed Assets Under Management (AUM), cumulative loan disbursements exceeding INR 7.74 billion, which includes over 55,000 active retail and fleet accounts.

Traditional automotive financing heavily weights a borrower's static income profile. In contrast, ev.fin utilises a differentiated, OEM-agnostic asset underwriting model that structures loan terms based on the real-time thermal health, degradation curves, and residual resale value of the EV battery pack.

The platform is directly embedded into the point-of-sale (POS) dealerships of major electric two-wheeler (E2W) and three-wheeler (E3W) original equipment manufacturers, including Ather Energy, Ampere, River, Hero MotoCorp, Bajaj Auto, TVS Motor Company, Suzuki and Ultraviolette.

The platform's proprietary underwriting framework allows it to issue specialised, risk-adjusted credit instruments that track the entire functional lifecycle of an electric vehicle:

P B Sunil Kumar, Executive Director & CEO, Greaves Finance, said, “The deployment of substantial funds from our existing INR 2.23 billion, marks an important milestone for ev.fin and reflects strong institutional and investor trust. Our institutional partnerships and investor endorsement have provided a robust foundation, which demonstrates support for our differentiated business model and is a ringing endorsement of the way we have decided to scale the business."

"As India’s electric mobility market accelerates, innovative and accessible financing solutions will remain central to unlocking the next phase of growth. Recognising this potential, we are actively working toward expanding our lender ecosystem to support our next growth cycle while maintaining robust underwriting and portfolio quality,” he concluded.

The Mexican federal government has officially unveiled the prototype for Olinia, the country's first domestic electric vehicle (EV) brand. Coordinated by the Ministry of Science, Humanities, Technology, and Innovation (SECIHTI) and manufactured in Puebla, the project represents Mexico’s strategic shift from a pure export-oriented assembly hub to a developer of national intellectual property says a report by Mexico Business News.

Commercial production for Olinia is slated to begin in 2027, with the brand looking to challenge the historical dominance of foreign manufacturing frameworks.

Claudia Sheinbaum, President, Mexico, said, “Olinia represents the seed of a new innovation ecosystem built from Mexico."

The initiative directly addresses Mexico's long-standing reliance on final-assembly manufacturing under trade agreements like the USMCA. While countries like China capitalised on state coordination and strict supply chain control to build massive domestic EV ecosystems, Mexico historically lagged in capturing high-value-add automotive IP.

To bridge this gap, SECIHTI orchestrated an intensive 18-month engineering phase, uniting academic and public research powerhouses – including the Instituto Politécnico Nacional (IPN), Tecnológico Nacional de México (TecNM), UNAM and UPAEP.

The brand's debut model, the Olinia Uno, targets urban utility and aggressive affordability, aiming for a market segment largely overlooked by global legacy automakers.

The Olinia Uno is expected to cost approximately MXN 150,000 or USD 8,600 (INR 716,466), comes with a 14.7 kWh battery, with a claimed range of approximately 125 km per charge and a top speed of 50 kmph. The EV is expected to offer a low running cost of around MXN 0.5 or INR 2.74 per km.

In terms of features, the EV comes with a 7-inch centre display, Bluetooth 5.0, USB/USB-C ports, 6-passenger capacity and wheelchair accessibility.

Operating under a mixed-ownership corporate structure, the Olinia project is currently seeking MXN 200 million (USD 11.4 million) in private capital to transition from prototype to commercial manufacturing. Facility construction in Puebla is scheduled to begin between August and September 2026.

The plant is expected to debut with an initial capacity of 20,000 units per year, aiming to scale to 50,000 units within four years and eventually peak at 100,000 units annually. Olinia will launch with 50 percent localisation, with a mandate to hit 75 percent localisation by 2030.

The project is led by Director Roberto Capuano Tripp, with the initial phase involves deploying 2,000 charging points across Mexico City, the State of Mexico and Puebla to support the mass transition of public transport and taxi fleets.

To accommodate the rollout, federal authorities are collaborating with the Ministry of Economy to draft a new regulatory framework specifically governing low- and medium-speed urban vehicles. Furthermore, the vehicle's battery design incorporates a circular-economy strategy: power cells will be repurposed for residential energy storage before undergoing final chemical recycling at processing facilities in Sonora.