In 2007, Australian automotive parts and accessories imports from the U.S. were valued at $402 million, which is an increase of 12% from 2006. This industry can be segmented into suppliers to the motor vehicle manufacturing sector and suppliers to the aftermarket. The aftermarket segment is the largest, estimated to represent 70% of the total automotive parts and accessories market and therefore represents a large proportion of the prospective buyers. Wholesalers that service the aftermarket segment import nearly 50% of products.

• The aftermarket currently owns 70% of the automotive parts and accessories business in Australia.
• In a recent survey, in the past four years, imports from the US have risen from 20% of total imports to 27%.
• The US is listed consistently in the top four import sources for Australian businesses.

The Australian automotive industry is moving to lower tariffs on vehicles and associated parts and less Australian government assistance. The automotive tariff on passenger vehicles was reduced to 10% on January 1, 2005 and will fall to 5% in 2010. Government assistance to the industry in this form will cease in 2015 when the transition to lower tariffs will be complete. By the time government support to the automotive industry ends in 2015, it will have totaled $4.2 billion.

Best Prospects 

There are a number of opportunities for U.S. companies supplying automotive parts to the following segments: small car market, light trucks, SUV and high performance.

• Small Passenger Vehicles: Year to date (September 2008) sales of passenger vehicles has increased by 0.3% in comparison to 2007. Although comparatively small, this increase reflects a continuing trend within the Australian market with consumers favoring small, fuel-efficient vehicles.
• Light Trucks: In total the market has risen by 7.7% in year to date terms. This growth is being driven by the van segment, which rose by 28.5% alone and the light bus segment up 47.1%.
• Sports Utility: The Sports Utility Vehicle Market increased to 152,943 vehicles, up 5% from the same time last year.

• Performance Parts: Parts relating to motor reconditioning are being sought after with Australian consumers preferring U.S. parts to Asian automotive parts in relation to quality. Although, it should be mentioned that Australian consumers continue to purchase Japanese and Chinese parts due to their lower cost. The aftermarket parts segment is seen to be less volatile however it is very competitive due to reduced tariffs.

U.S. – Australia Free Trade Agreement

Australia and the United States enacted a Free Trade Agreement (FTA) on January 1, 2005. As a result, import duties on more than 99% of automotive products have been eliminated. It is essential that U.S. companies understand the FTA in order to take advantage of its benefits. This webinar will address the strict and often complex eligibility requirements, certification, duty phase out, and classification that has to take place in order to receive duty free access.

Webinar Program and Presentations: 

• Highlights, best prospects, and entry strategies for the automotive sector in Australia
  U.S. Commercial Service, Melbourne, Australia Australina Market Opportunities (1502KB)
• Rules of origin and certificate of origin
  Trade Information Center of the U.S. Department of Commerce. US-Australia Free Trade Agreement (337KB)
• Australian Automotive Aftermarket
  Australian Automotive Aftermarket Association (AAAA) Australian Aftermarket Opportunities (1591KB)

Australian Automotive Company Trade Leads:

• Company seeking brand new Cadillac SUVs and Dodge Ram Trucks in any color.
• Company wants plastic molded drawer systems for fitment in the back of 4WD, station wagons and utility vehicles.
• Company looking for general 60s and 70s restoration parts.
• Company interested in a cheaper line of car wash, car polish and a cutting compound.
• Company in search of automotive tuning and diagnostic equipment.
• Company seeking cast pistons, forged pistons, ARP fasteners, engine bearings and piston rings.
• Company wants windscreens or any automotive glass manufacturers on the West Coast.

For more information contact:

Shannon Christenbury (704)-333-4886 ext. 225 shannon.christenbury@mail.doc.gov
Leandro Solorzano (215)-597-6127 leandro.solorzano@mail.doc.gov

Upcoming Trade Event 

The Australian Auto Aftermarket Expo
Date: April 2-4, 2009
Location: Sydney Exhibition Centre
www.aftermarketexpo.com
Visit the largest dedicated event for the automotive industry and discover 350+ industry leaders launching the latest parts, accessories, tools and equipment. 

In partnership with: