Australia: An Overview and Economic Insights Australia, the only country that spans an entire continent, ranks among the largest nations globally. Despite its vast natural resources and fertile land, over a third of Australia is desert. Canberra, the nation’s capital, is strategically located between the major economic and cultural hubs of Sydney and Melbourne. The Australian economy is primarily driven by its service sector, which accounted for 62.7% of GDP and employed 78.8% of the labor force in 2017. During the peak of the mining boom in 2009-10, the mining industry contributed 8.4% to the GDP. Australia excels in income, jobs, education, health, environmental quality, social connections, civic engagement, and life satisfaction.
Auto Parts Aftermarket in AustraliaThe Australian auto parts aftermarket is poised for growth, with an anticipated compound annual growth rate (CAGR) of 3.9% from 2024 to 2030. The market’s expansion is driven by the digitalization of automotive repair and component sales, along with advanced technological integrations in aftermarket component manufacturing.
Macro-Economic Factors Influencing the Market Australia’s economy has seen steady growth and low unemployment rates in recent years, boosting consumer confidence and purchasing power. Favorable interest rates and flexible financing options have further facilitated vehicle ownership. Additionally, government policies and incentives have spurred the adoption of electric and hybrid vehicles, contributing to market growth. Financial incentives and infrastructure development have encouraged consumers to consider environmentally friendly alternatives, fueling the overall growth of the passenger car market.
Market Size and Growth
More Than 2 Million Used Cars Sold in Australia in 2023
According to data released by the Australian Automotive Dealer Association (AADA) and AutoGrab, a total of 2,074,535 used cars were sold in Australia from January to December 2023. This robust supply of used cars coincides with a record year for new vehicle sales, underscoring the significance of the used car market in Australia. For every new car sold, 1.7 used cars were sold. The Australia Used Car Market was valued at an estimated USD 62.83 billion in 2023. Most of Australia’s vehicles are imported from Japan, Thailand, Germany, and Korea. Generally, imported vehicles are subject to Duty and Goods and Services Tax (GST). Toyota is expected to hold a market share of 24.9% in 2024, with a value market share of 24.2%.
Key Economic Indicators
- Population: 26.1 million
- GDP Annual Growth: 4.3%
- GDP Per Capita: USD 61,340
- Inflation Rate (2024): 3.6%
- Interest Rate: 4.30%
- Government Debt to GDP Ratio: 38.1%
- Exchange Rate: 1 USD = 1.48 AUD
- Import Tariffs: 10% to 25%
Transportation Options
- By Air: Flights from Jinnah International Airport (KHI) to Melbourne International Airport (MEL) take about 15 hours and 30 minutes.
- By Sea: Ship travel from Karachi Port (PKKHI) to Melbourne (AUMEL) takes approximately 21 days and 19 hours, with vessels departing every 1-2 days.
Key Events in Australia Auto Parts Sector for 2024~2025
Upcoming Exhibitions
| 25 ~ 27 Oct 2024 | 4WD & Adventure Show | 4WD, Caravanning and Camping, Boat, Fishing and more | Adelaide Showground, Wayville. SA Australia |
| March ~ April (Date Not decided yet) 2025 | Australian Auto Aftermarket Expo 2025 | Auto Parts | Melbourne Convention & Exhibition Center, South Wharf. Australia |
| 15~18 May, 2025 | Brisbane Truck Show | Truck New and old | Brisbane Convention & exhibition Centre, Brisbane. Australia |
Conclusion Australia presents promising opportunities for the auto parts aftermarket, bolstered by a robust economy and favorable conditions for growth. Exploring these opportunities can benefit both the nation and individual companies, driving economic stability through increased exports. Embracing this potential can lead to a more prosperous future for all stakeholders involved.
By Mashood Khan, Director – Mehran Commercial Enterprises, Expert Auto Sector / Former Chairman PAAPAM