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)

Greaves Cotton Establishes Dubai Subsidiary For International Expansion

Greaves Cotton

Mumbai-headquartered engineering major Greaves Cotton has incorporated a wholly-owned subsidiary, Greaves International Trading FZE (GITFZE), in Dubai, United Arab Emirates. The subsidiary will function as a hub for trading and distribution, aiming to increase the company’s presence in the Middle East and Africa.

The subsidiary will manage business development, customer engagement, technical support, channel partnerships, aftermarket services and supply chain coordination. Its portfolio will include diesel engines, gensets and powertrain solutions.

Greaves International Trading FZE  will initially target GCC markets, including the UAE, Saudi Arabia, Qatar, Oman, Kuwait and Bahrain, with subsequent expansion planned for the Levant and Africa.

Parag Satpute, MD & Group CEO, Greaves Cotton, said, “International Business is a key growth driver for Greaves and a core pillar of our GREAVES.NEXT strategy. In line with our strategic roadmap, its contribution increased from 9 percent to 13 percent in FY2026. The establishment of Greaves International Trading FZE marks a significant step in strengthening our presence across the Middle East and Africa. It enhances our ability to respond with agility to market needs, deepen customer engagement and deliver reliable, future-ready solutions. This is a focused move towards expanding our global footprint and driving sustained, long-term growth.”

The establishment of GITFZE is part of the company's strategy to scale its footprint and export capabilities.

Stellantis Appoints Santo Ficili As CEO Of Maserati Brand , Luca Napolitano Head Of Stellantis &You Sales & Services

Santo Ficili

Stellantis, one of the leading automotive groups, has announced appointments within its Enlarged Europe organisation, effective 1 July 2026.

The company has announced that Santo Ficili has been appointed the CEO of the Maserati brand, while continuing his role as CEO of Alfa Romeo. In addition, Luca Napolitano has been appointed Head of Stellantis &You Sales and Services.

These appointments follow the departure of Jean-Philippe Imparato, who is leaving the company after 36 years.

Emanuele Cappellano, COO, Enlarged Europe & European Brands and Head of Stellantis Pro One, said, “I would like to extend my sincere thanks to Jean-Philippe for his unparalleled contribution to our Company, in which he spent his entire professional life. Jean-Philippe has been a true example of how to combine passion with business, inspiring people with his daily commitment and deep knowledge of the automotive industry. I congratulate on their appointments Santo and Luca, who are already fully operational within Maserati and Stellantis &You organisations and will ensure continuity in these key areas. Their experience and leadership will be crucial in this new stage of growth.”

Tata Motors And Castrol India Forge Partnership For Used Engine Oil Recycling Pilot

Tata Motors And Castrol India Forge Partnership For Used Engine Oil Recycling Pilot

Tata Motors has entered into a memorandum of understanding with Castrol India to launch a pilot programme focused on establishing a circular economy for used engine oil. The initiative directly supports India’s Extended Producer Responsibility regulations while addressing the environmental challenges posed by lubricant waste.

The collaboration will create a structured and traceable system for the collection, storage and channelling of used oil originating from Tata Motors’ authorised service network. Operations for this pilot are specifically centred in Karnataka, targeting a longstanding gap in the responsible handling of this hazardous material.

Under the programme, Tata Motors’ service touchpoints in the state will function as designated collection hubs. Castrol India will leverage its technical expertise to oversee the delivery of the recovered oil to registered recyclers, ensuring rigorous quality control and traceability throughout the recycling chain.

This partnership extends the companies’ established relationship and reinforces their mutual dedication to sustainability. The pilot complements Tata Motors’ wider strategy of promoting alternative-energy vehicles while supporting Castrol India’s objective of integrating recycled content into its premium lubricant offerings.

Vikram Agrawal, Head – Spares and Non-Vehicle Business, Tata Motors Commercial Vehicles, said, “Responsible used-oil management is central to building a truly circular automotive ecosystem in India. The volume of used engine oil generated across India’s roads each year makes responsible collection and recycling a matter of significant environmental consequence. By partnering with Castrol India, we are creating a credible, scalable model that links responsible collection at our service touchpoints to high-quality re-refined output. This is a meaningful step in Tata Motors’ broader sustainability journey.”

Anoop Jindal, Vice President – B2B (OEM) Sales, Castrol India Limited, said, “Creating a circular economy for lubricants requires collaboration across the entire value chain. This association with Tata Motors marks our first OEM collaboration focused on building a structured ecosystem for responsible used-oil management in India. We are working to strengthen every link in the circularity chain, from collection and channelisation to recycling and reuse. Insights from our used-oil collection pilots in southern India have deepened our understanding of both the opportunities and challenges involved in scaling circularity. Together with Tata Motors’ extensive service network, this initiative can help create a more organised, traceable and scalable model for used-oil circularity in India.”

Quitterie de Pelleport

French automotive major Renault Group has appointed Quitterie de Pelleport as General Secretary, effective from 1 July 2026. The new division will oversee Legal, Audit, Risk, Ethics & Compliance, Prevention and Protection, Sustainability, Strategic Partnerships, Defence activities and the Circular Economy unit ‘The Future Is Neutral’.

The company also announced the appointment of Sandra Gomez as Chief Product & Program Officer and Francois Lavernos as Chief Information & Digital Officer. Both will report to CEO Francois Provost, who will oversee strategy and the futuREady product plan.

Francois Provost, said, “Four months after the launch of our futuREady plan, we are continuing the transformation of Renault Group with a clear focus on simplification and speed of execution. The creation of the General Secretariat is a key lever to strengthen our governance and our capacity to deliver on our ambitions. This role will also contribute to the development of certain high-potential activities. I have every confidence in Quitterie to lead this strategic function. At the same time, we are simplifying the scope of product, programs and strategy to accelerate the strengthening of our vehicle range and technologies.”

Pelleport joined Renault Group in 2021 as Chief Legal Officer. Her career includes roles at Kramer Levin Naftalis & Frankel, DLA Piper, Rhodia and Solvay.