The Australian Automotive Dealer Association (AADA) is urging the Albanese Government to honour its election promise by legislating protections for franchised new car dealers and banning unfair trading practices and contract terms in the automotive industry.
James Voortman, CEO of the AADA, said that it has been exactly one year to the day that the Government publicly committed to banning the use of unfair trading practices and unfair contract terms to protect Australian franchised new car dealers after years of exploitation of the power imbalance between multinational auto manufacturers and Australian new car dealers.
“As international competition in Australia’s automotive market intensifies, franchised new car dealers are increasingly facing pressure from multinational manufacturers through unfair trading practices and contract terms that exploit the clear power imbalance in the sector.”
“As local new car dealers are squeezed, it will ultimately be Australian customers who pay the price through less investment in local jobs and reduced access for regional communities,” said Mr Voortman.
“It is therefore, absolutely vital that the Government implements the commitments made prior to the election to extend unfair contract terms to all new car franchisees and to develop an unfair trading practices prohibition for franchisees.”
“In the past five years, 28 brands have set up in Australia. However, an increase in the number of brands has not resulted in increased profits. If this trend continues, we certainly don’t want to end up in a situation where we’re seeing dealerships closed, and local jobs lost,” said Mr Voortman.
The call to protect Australian dealers comes as the AADA releases its 2026 ‘Dealernomics’, an evidence-based report with insights into the performance of franchised car and truck dealers across Australia, as well as broader trends shaping the automotive market.
The latest edition shows the sector continues to play a significant role in the national economy, with 3,868 dealerships across Australia contributing $21.5 billion in economic activity and employing more than 64,000 people, including 7,508 apprentices.
“Australian franchised new car dealers have seen their fair share of manufacturers come and go. However, new car dealers are dedicated to their communities and have always been there to honour warranty obligations, Australian Consumer Law guarantees, and recall requirements for drivers.”
“In a rapidly changing industry, it is imperative that the automotive infrastructure and services that Australians rely upon are protected and maintained,” said Mr Voortman.
The 2026 Dealernomics Automotive Statistics booklet is available for download below.