Transcript Australia_Ben_17thAug12

Market Outlook and Opportunities
in the Australian
Auto Parts Industry
Presenter: Ben Bartlett
Senior Manager, Government Relations & International
Australian Automotive Aftermarket Association
The AAAA – Who are we?
The Australian Automotive Aftermarket Association
(AAAA) is the national industry association representing
1300 manufacturers, distributors, wholesalers, importers
and retailers of automotive parts and accessories, tools
and equipment in Australia.
The AAAA represents member companies in
negotiations with Government, Regulators and other
industry groups and works with member companies on
the development of their businesses.
The AAAA – Who are we?
The AAAA represents member companies in negotiations
with Government, Regulators and other industry bodies.
The AAAA has relationships with Automotive Aftermarket
industry associations in the USA, Europe, Canada, Africa,
Asia and the Middle East.
The AAAA produces Australian Auto Aftermarket Expo,
the Australian Automotive Aftermarket magazine and
works with member companies on the development of
their businesses.
The Australian Economy
Total Population 22 million people
GDP USD$700 Billion per annum
The Resources sector drives the Australian economy
Economy has not entered a Recession at any stage
during the Global Financial Crisis
Australian Repair & Service Sector – Current Status
• 2010/11 industry revenue $12.5 billion (1% -1.5% growth)
• 26,315 premises delivering vehicle maintenance and repair.
(includes approx 2,300 dealerships)
• Highly fragmented industry
• High degree of competition in post warranty repair and
handbook service segments
• Independent repairers approx 65% market share overall
• Significant consolidation/structural change taking place
Australian Car Parc – Current Status
• Total Number of Registered Vehicles– 16 million (2% growth)
• Average age vehicles – 10.0 years (9.8 years PMV)
• New Vehicle Sales – approximately 1 million per annum
• 62 brands selling over 320 models (85% imported)
- Europe 60 brands: 15 million new vehicles sold
- USA 32 brands: 17 million new vehicles sold
• 85 makes and 1200 models of vehicles registered
The Australian automotive industry
The GFC slowed vehicle sales, however 2008 was only the
second time on record over 1 million vehicles were sold in a
calendar year.
The Passenger vehicle market contributed 59% of total
sales, followed by sports utility vehicles (18%), light
commercial vehicles (18%) and heavy commercial
vehicles (4%).
AFTERMARKET DISTRIBUTION
Opportunities to purchase from the Australian
automotive aftermarket industry
What types of products?
Performance Parts and Accessories
Accessories for PMV & SUV vehicles
Some Replacement parts eg, suspension, brake, engine
Opportunities to supply to the
automotive aftermarket industry
What types of products?
Service parts including filters & brake pads
Replacement parts eg, suspension, brake, engine
Performance Parts and Accessories
Accessories for PMV & SUV vehicles
Workshop tools and equipment
The Australian automotive aftermarket industry
Typical Retail Store Turnover –
% of Turnover Automotive Parts & Accessories
Cosmetics & Appearance:
17.00%
General accessories:
17.00%
Communication & Electronics:
15.00%
Oils, Filters & Chemicals:
13.00%
Auto Electrical:
13.00%
Brake, Exhaust & suspension:
10.00%
Engine, Cooling & Transmission:
8.00%
Paint & Body:
3.00%
Performance:
2.50%
Wheels & Tires:
1.50%
Australian Aftermarket Growth
Segments
www.4wdcouncil.com.au
www.prtc.com.au
Market Dynamics
Australia is a large country with a relatively small
population
Most people live on the eastern seaboard
Diverse car park, high percentage of imported vehicles
Well developed distributor, wholesale and retail
networks
Significant number of Retail Chains, with the
independent segment reducing.
Opportunities to supply to the automotive
aftermarket industry
What do we look for?
Quality
Delivery
Relationship
Innovation
Price
AAAA Choice of Repairer Campaign
The Global
“Right to Repair”
Campaign
• Australia’s leading Auto Parts &
Accessories Magazine.
• Published 8 times per year.
• CAB audited circulation of 14,000
businesses across Australian and
around the world.
• Held Bi-Annually, rotating between Melbourne & Sydney
• Next held in Sydney in April 11-13 2013
• 18,000 sqm of exhibition space
• Concurrent Collision Repair Expo
• 350+ Exhibitors – OVER 92% SOLD OUT
• 10,000 B2B Visitors including OE, Aftermarket & International
• International Pavilions from USA, Thailand, Taiwan & China.
• Supported by 14 Australian & International Business Associations
• Like AAAA on Facebook: search Australian Automotive
Aftermarket Association.
• Follow AAAA on Twitter: search AAAATweets
• On LinkedIn? Join the ‘Australian Automotive Aftermarket
Association’ Group.
• Check out the AAAA YouTube Channel
Major AAAA Contacts
• Stuart Charity – Executive Director
• Ben Bartlett – Senior Manager – Government Relations &
International
Australian Automotive
Aftermarket Association
Building 3, Suite 16, 195 Wellington Rd
Clayton, VIC, 3168, Australia
Ph: +61 3 9545 3333
Fax: +61 3 9545 3355
Email: [email protected]
Web: www.aaaa.com.au
Ben Bartlett – Senior Manager,
Government Relations & International