Archives: Dealer Bulletins

Over the last few months, the AADA has been made aware of delayed processing times and a backlog of imported vehicles awaiting clearance through Australian ports due to increased biosecurity risk.

In response, AADA has met with the Federal Chamber of Automotive Industries (FCAI) and officials from the responsible Federal Government department, the Department of Agriculture, Fisheries and Forestry to discuss what is being done in response to this issue and make representations on behalf of Australia’s franchised new car Dealer network.

The FCAI (supported by its member committees), the Department and the port authorities are in regular communication and are working to resolve these issues, with the Department advising that current delays to the delivery of new vehicles are a direct result of the capacity of the commercial companies to manage the surge in contaminated vehicles arriving at the border.

On 3 March, the Department released updated guidance on Biosecurity Risk Material on new vehicles arriving in Australia. This guidance states that since 2021 Australia’s ports have seen an 88 per cent increase in new vehicles arriving with biosecurity risk material contamination. Increased rates of biosecurity contamination are likely due to several commercial factors, including increasing demand for new vehicles coupled with the ongoing recovery in global supply chains and shipping schedules post COVID.

AADA will continue to monitor this issue and update members with any new advice received.

 

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AADA has gathered data from various sources to create the 2023 edition of the annual Automotive Statistics booklet. AADA Automotive Statistics 2023 is a valuable resource which provides insights into the latest trends in the automotive industry, summarising some of the most relevant and interesting data.

This comprehensive guide contains various statistics on new vehicle sales; Australia’s in-service fleet; the economic contribution of Dealerships; the sales performance of each Dealer network; taxation in the automotive industry; fuel trends of vehicles from 2019-2022 and results of electric vehicle research.

To access your essential summary of the past year in the automotive industry, download the AADA Automotive Statistics 2023 booklet.

 

DOWNLOAD AADA AUTOMOTIVE STATISTICS 2023

 

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Solar Victoria has provided an update on the progress of the Zero-Emission Vehicles (ZEV) Subsidy Program. As of mid-January 2023 there have been 7,839 applications since the program launched in mid-2021. There are currently over 4,000 ZEV subsidies remaining in this release.

There is an important update for ZEV Traders. As of 2 February 2023, there is a new and improved ZEV Trader Portal available, and the previous portal has been closed. Participating Dealers will need to access the new portal directly to apply subsidies, as the old portal link has been taken down.

The ZEV Trader Portal has been updated and streamlined to address feedback received from participating Dealers. Solar Victoria have simplified the application requirements including improvements to customer eligibility checks.

Key improvements now allow Dealers to:

• Check the customer’s eligibility before generating a contract of sale
• Manually enter a customer’s address if it isn’t recognised in the portal
• Edit a customer’s address
• Create new orders on the portal homepage
• Only enter odometer readings for demonstration vehicles
• Upload additional documents and provide reasons for cancelled orders
• See payment dates on your Dealership activity report
• View business names in the order and assessment tabs

All data from the previous portal will be migrated to the new one, and trader credentials retailed to minimise disturbance in the transition process. PDF guides and instructions on the application process for individual and business customers have been made available.

 

ACCESS ZEV TRADER PORTAL

 

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Minister for Skills and Training, Brendan O’Connor, has announced an expanded 2023 skills priority list of apprentice trades that will attract Government incentives. Included on the list are motor mechanics and almost all other auto trades. The Australian Apprentice Priorities List is based on independent analysis by Jobs and Skills Australia.

The Australian Apprenticeship Priority List has been expanded to include 111 apprentice occupations that are eligible for additional support, as part of the Australian Apprenticeship Incentive System. The support includes up to $5,000 in direct apprentice payments, and up to $15,000 in wage subsidies for employers.

The following automotive related apprenticeships were already included on the list:

• Motor Mechanic (General)
• Auto Electricians
• Fitters (Diesel and Mobile Equipment)
• Metal Machinists
• Metal Fabricators
• Small Engine Mechanics
• Vehicle Body Welders
• Welders

New and eligible occupations as of 1 January 2023:

• Diesel Motor Mechanic
• Motorcycle Mechanic
• Panel Beater
• Vehicle Painter
• Vehicle Trimmer

Incentives for employers of apprentices are managed through the Australian Apprenticeship Support Network. Dealers employing new apprentices in this new year are likely to be eligible for Priority Wage Subsidies.

 

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VFACTS for December 2022 and the full calendar year were released yesterday by the Federal Chamber of Automotive Industries. New car sales remained strong for 2022, with 1,081,429 vehicles sold. This represents a 3 per cent increase on 2021.

Increasing interest rates and ongoing supply issues don’t appear to have affected the market throughout 2022, with demand remaining high. However, the result seems to have fallen slightly short of start of year predictions for some brands, particularly due to these continuing issues throughout the year.

Toyota continues to dominate, with a 21.4 per cent market share, and was the top seller for the 20th year in a row with 231,050 cars sold. The top five was rounded out by Mazda (95,718), Kia (78,330), Mitsubishi (76,991) and Hyundai (73,345). This is the first time that Kia has outsold Hyundai, as they posted a 15.3 per cent increase on the previous year’s sales figures.

Brands that didn’t fare as well include Honda, who posted their lowest sales numbers on record, Nissan, whose sales figures decreased by 35.8 per cent, and Volkswagen saw a 24.1 per cent decrease for 2022.

The Toyota Hilux became the first vehicle since the Holden Commodore in 2005 to break the 60,000 mark for cars sold in a year, with its 4×4 and 4×2 variants selling a total of 64,391 vehicles. SUVs and light commercial vehicles remained extremely popular, accounting for 16 of the top 20 models sold in 2022. This represented just over 75 per cent of vehicles sold for the calendar year.

Battery electric vehicles continued to increase in popularity with more than 33,400 cars sold for the year, representing an 821 per cent increase on 2021. 11.2 per cent of vehicles sold in 2022 were low emissions vehicles including hybrids, BEVs and PHEVs. This is an increase from 7.5 per cent in 2021.

The AADA has assessed VFACTs Top 20 Brands & Models for the whole of 2022, and for December 2022, ranking them by volume.

 

DOWNLOAD VFACTS MONTH ON MONTH – DECEMBER 2022

 

DOWNLOAD VFACTS – WHOLE OF YEAR 2022

 

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The Motor Industry Services Group at Pitcher Partners are touring Sydney, Melbourne, and Brisbane with their Automotive Industry Forum.

Register to attend the free state-based forums where they will, alongside Complete Dealer Services, cover the following topics:

• What is the state of the industry?
• What is my dealership worth in today’s market?
• How does my dealership compare when benchmarked, considering the current demand, EVs, agency and the return of the supply push market?
• Update on fringe benefit tax (FBT) on carparking.
• Twenty plus ways you can improve your service department’s NPS.

Dates and Locations

Sydney – Wednesday 30 November 2022
Brisbane – Thursday 1 December 2022
Melbourne – Friday 2 December 2022

Follow the link below to find out more and secure your spot at the Automotive Industry Forum.

 

REGISTER – AUTOMOTIVE INDUSTRY FORUM

 

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Thank-you to those members who have already submitted a response to the Skills Priority List Stakeholder Survey that was sent out on 17 November 2022. This is a reminder to those who may still want to provide a response to please complete the survey before it closes on 9 December 2022.

The AADA was invited by the National Skills Commission to participate in the Skills Priority List (SPL) Stakeholder Survey due to our ongoing engagement on the issue of skills shortages for members and their Dealerships. The SPL identifies occupations that are in shortage across Australia and enables the government to develop policy responses on migration shortages, training funding and employer incentives.

AADA is inviting members to complete a short survey detailing their Dealership’s experiences to ensure we provide accurate responses to the SPL Stakeholder Survey. We estimate it will take Dealers less than 7 minutes to complete the survey.

Please click the link below to take the survey and thank you in advance for your assistance.

 

AADA SURVEY – SKILLS PRIORITY LIST 2023

 

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Members continue to report that they are experiencing a shortage of skilled staff across their Dealerships. These shortages are especially evident in Dealer workshops where there is a shortage of skilled technicians but may also be an issue in other parts of the Dealership.

The AADA has continued engaging with the Federal Government on the issue of skills shortages and as in 2021, we have again been invited to participate in the Skills Priority List (SPL) Stakeholder Survey, conducted by the National Skills Commission.

The SPL identifies occupations that are in shortage across Australia and is an important source of information which enables the government to develop policy responses on migration shortages, training funding and employer incentives.

To ensure that our response is as accurate as possible, we are asking members to assist us by completing a survey detailing their Dealership’s experiences. We estimate that it should take Dealers approximately 7 minutes to provide answers to the 12 questions.

Please click the link below to take the survey and thank you for your assistance.

 

AADA SURVEY – SKILLS PRIORITY LIST 2023

 

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The AADA has lodged our submission to the Federal Government’s National Electric Vehicle Strategy.

The adoption of electric vehicles (EVs) will bring a range of economic, environmental, and social benefits to Australia and franchised new car Dealers will play a crucial role in selling, servicing, and repairing those vehicles, whilst also educating consumers.

We have urged the Government to adopt a strategy which is ambitious, but realistic and flexible, while seeking to avoid unintended consequences which would undermine goals such as lower emissions, affordable vehicles, and vehicle choice.

We have also strongly urged the Government to refrain from expanding used EV imports into Australia and to avoid banning petrol and diesel vehicles prematurely.

In preparing our submission, AADA commissioned survey research from an independent provider to canvas views and experiences of Australian drivers across areas relating to current behaviours, and future vehicle intentions. The goal of the survey was to assist us with understanding the average Australian driver’s mindset and attitude around EVs.

AADA participated in the consultation process by not only by providing our own submission, but also by engaging with other automotive industry associations to formulate a joint submission to showcase the industry’s shared positions on the strategy.

 

AADA SUBMISSION

 

AUTOMOTIVE INDUSTRY ALLIANCE SUBMISSION

 

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Treasurer Jim Chalmers delivered the 2022-23 Federal Budget on Tuesday 25 October 2022 which focused on “Building a better future”. There is a strong focus on cost-of-living relief, responsible budget repair, and building a stronger, more resilient economy. It is essentially a mini budget which has allowed the new Labor Government the opportunity to document its election commitments and reallocate spending decisions taken by the previous government.

From a new car Dealer perspective, there are no real surprises. At this stage there has been no suggestion that the instant asset write off/temporary full expensing measure will be extended beyond 2023. This budget has confirmed the Government’s willingness to support electric vehicle uptake with FBT deductions, tariff concessions, electrifying the Commonwealth fleet, spending on charging infrastructure and investment in the national electricity grid.

To address the skills shortage the Government has increased the skilled migrant intake and provided funding for apprentices in the ‘new energy sector’.

From a taxation perspective, the Luxury Car Tax is expected to raise more than $1.1 Billion in this financial year, while receipts from the passenger vehicle tariff are strong too.

We have prepared the attached Budget Briefing Paper for members which provides a summary and brief explanation of the measures that are relevant.

Further details are also available on the Government’s Budget Website.

 

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