AAAA Is Positive On Growth Outlook Over The Next Five Years
- By T Murrali
- December 19, 2020
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)
Vedanta Aluminium’s BALCO Unit Deploys 30 Women Crane Pilots
- By MT Bureau
- March 19, 2026
Vedanta Aluminium has deployed its first cohort of 30 women crane pilots at the Bharat Aluminium Company (BALCO) unit in Korba, Chhattisgarh. The group includes 20 Pot Tending Machine (PTM) pilots and 10 beam-raising operators, marking a shift toward women-led operations as the facility enters the ‘million tonne club’.
The pilots operate in a smelting environment, executing tasks for stable metal production. These responsibilities include: anode changing & covering, tapping of molten aluminium and beam raising activities across all potlines.
The deployment followed a training programme involving classroom instruction, simulator sessions and on-the-job exposure. Currently, beam-raising activities at the plant are led by women designated as Beam Raising In-Charge in each room.
The initiative is part of a broader strategy to automate core manufacturing roles and make them gender-agnostic. Vedanta Aluminium has previously implemented:
- Jharsuguda: India’s first fully women-operated potline.
- Lanjigarh: An all-women team managing the digital command centre at the alumina refinery.
- Logistics: An all-women locomotive crew for in-plant rail operations.
BALCO also integrates transgender professionals into functions such as forklift operations and security, supported by policies including financial assistance and paid leave for gender reaffirmation.
Rajiv Kumar, CEO, Vedanta Aluminium, said, “Automation and advanced technologies are reshaping how modern aluminium operations function across all our units. This transformation is creating space for a new generation of highly skilled professionals to lead critical, technology-enabled roles. At Vedanta Aluminium, we are proud to see women stepping confidently into these specialised positions across our operations. This milestone at BALCO reflects our commitment to building a future-ready workforce while fostering greater participation of women in core manufacturing.”
Naaz Fatima, a PTM pilot, commented, “Working as a PTM pilot is both challenging and deeply rewarding. What I value most is that the company trusts us with these critical operations and invests in our growth. It feels empowering to know that our work directly contributes to BALCO’s progress and that we are shaping a new future for women in industrial roles.”
KKR Commits $310 Million To Indian Electric Bus Platform Allfleet
- By MT Bureau
- March 18, 2026
KKR, Allfleet India and PMI Electro Mobility Solutions have announced definitive agreements for a strategic partnership. KKR-managed funds will commit up to USD 310 million to scale Allfleet’s electric bus platform and enhance PMI Electro’s manufacturing capabilities.
As part of the transaction, KKR will acquire a majority stake in Allfleet and a minority stake in PMI Electro. This represents the eighth investment globally under KKR’s Global Climate Transition strategy and its first in India.
Established in 2022, Allfleet serves as the e-bus platform for PMI Electro, focusing on the ownership and operation of public transport fleets. The company is currently deploying over 5,000 electric buses under long-term service agreements with various state transport authorities across India.
The partnership will see an integrated model covering manufacturing led by PMI Electro, ownership and operations by managed by Allfleet and lifecycle support by technical maintenance and infrastructure management.
KKR’s investment is drawn from its Global Climate Transition strategy, which has committed over USD 44 billion to sustainability initiatives since 2010. The firm’s global portfolio in this sector includes transport electrification specialist Zenobe in the UK and solar developer Avantus in the US.
The capital will be used to expand Allfleet’s presence in Indian cities and support the national transition toward decarbonised urban mobility.
Neil Arora, Partner and Head, of KKR’s Climate Transition strategy for Asia-Pacific, said, “Transport electrification is a critical pillar of the energy transition, and India – with its scale, urbanisation trends and decarbonisation ambitions – represents one of the most significant opportunities for the sector globally. The differentiated combination of Allfleet’s proven, scalable platform and PMI’s manufacturing and service expertise stands out as a full-service solution in this market. We look forward to supporting Allfleet’s next phase of growth by working together with PMI and leveraging KKR’s global operational expertise and experience investing across climate transition.”
Aanchal Jain, CEO, PMI Electro and Director, Allfleet, said, “This investment by KKR marks a defining milestone in our journey and is a powerful endorsement of the integrated electric mobility platform we have built at Allfleet. PMI Electro’s vision is to create a scalable, reliable, and future-ready ecosystem that can transform public transport in India. As our cities grow and mobility needs evolve, clean, efficient, and accessible public transport will play a central role in shaping a more sustainable future.”
Navi General Insurance Enters Motor Insurance Sector With Digital-First Model
- By MT Bureau
- March 17, 2026
Navi General Insurance has launched its motor insurance product, expanding its portfolio into the automotive sector. The offering provides a digital, app-led process for car and two-wheeler insurance with instant policy issuance and a zero-commission structure.
The company’s business model removes intermediary commissions traditionally associated with agent and dealer-led distribution. This direct-to-customer approach is intended to pass cost efficiencies to the policyholder.
Motor insurance currently accounts for approximately 30-35 percent of total premiums in the Indian general insurance market. The sector is supported by mandatory third-party cover requirements and increasing vehicle ownership.
The company’s service includes digital integration, comprehensive coverage options, electric vehicle-specific plans, add-on covers and underwriting & claims.
Vaibhav Goyal, Managing Director & CEO, Navi General Insurance, stated, “Motor insurance is one of the most widely held financial products in India, yet the buying and claims experience remains complicated. We see a tremendous opportunity to change that. As a digital-first, direct-to-customer insurer, we are cutting out commissions entirely, thus passing those savings directly to customers through competitive pricing. Simplifying finance for every Indian is at the heart of what we do at Navi, and with motor insurance, we're extending that promise to a product that touches millions of vehicle owners every year.”
Kordsa Displays Next-Gen Composite Technologies At JEC World 2026
- By MT Bureau
- March 13, 2026
Kordsa, a subsidiary of Sabancı Holding, presented its advanced material technologies to a global audience at the JEC World 2026 trade show in Paris. The company featured its latest breakthroughs in composite technologies tailored for the aviation, energy and automotive sectors. The event also served as a platform for Kordsa to communicate its sustainable growth strategy and technological transformation to an international network of stakeholders.
Held from 10 to 12 March 2026, JEC World is recognised as the premier global event for the composites industry. By convening the entire value chain, the exhibition enabled Kordsa to prominently display its expanding role and expertise in composite materials. The company’s presence was reinforced by its international subsidiaries, including US-based Fabric Development, Inc., Textile Products, Inc. and Axiom Materials, Inc., alongside Italy’s Microtex Composites Srl., demonstrating a unified approach shaped by evolving market demands.
Among the key innovations showcased were Ceramic Matrix Composite (CMC) technologies, carbon-reinforced prepregs, thermoplastic automotive interior components and structural body parts. These solutions are engineered to deliver high performance and reduced weight while simultaneously boosting production efficiency and minimising carbon footprint. For the aviation and energy industries, the company highlighted advanced composites designed to meet stringent demands for high-temperature resistance, durability and operational reliability.
Ergun Hepvar, CEO, Kordsa, said, “JEC World is one of the most important global meeting points in the field of composite technologies. On this platform, which brings together the entire value chain of the industry, we have the opportunity to closely observe both the current state of technologies and the trends that will shape the future. This year, we clearly saw that solutions focused on sustainability, lightweighting, high performance and production efficiency are becoming increasingly decisive. At the same time, we witnessed a transformation in customer expectations towards more integrated, agile and sustainable solutions. As Kordsa, we will continue to be an active part of this transformation and to develop value-creating solutions together with our customers.”
Emphasising that Kordsa differentiates itself in composite technologies by offering an end-to-end integrated structure, from R&D and serial production to supply chain and certification processes, Hepvar further added, “The increasing demand for advanced material solutions further strengthens our position in composites. We position composite technologies as one of our two strategic focus areas in Kordsa’s future. In this field, we adopt an approach that expands technological depth, product diversity and application areas simultaneously. Composite technologies stand out as a core area shaping both Kordsa’s present and future. Our goal is to deepen our capabilities here, build a structure that generates higher added value, differentiates itself and grows together with its customers.”

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