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The Australian Automotive Dealer Association (AADA) will travel to Beijing this week to participate in the 2026 World Intelligent Connected Vehicles Conference (WICV), bringing the perspectives of Australian dealers to one of the world’s leading automotive industry forums.

The AADA delegation will present on the transformation of the Australian automotive market, the opportunities and challenges arising from increasing competition, and the importance of strong and profitable dealer-manufacturer partnerships in delivering positive outcomes for customers and businesses.

The delegation will also meet with government and industry stakeholders, including regulators, industry associations and vehicle manufacturers, to discuss developments affecting the Australian market and advocate for the interests of Australian dealerships.

AADA Chief Executive Officer James Voortman said Australia had become one of the world’s most competitive automotive markets and offered valuable lessons for the global industry.

“Australia is being closely watched by other automotive markets. Intense competition between new and established brands has coincided with rapid technological change which is shaping the future of automotive retail.”

“The AADA represents thousands of Australian businesses, many of them family-owned dealerships, and it is important that their interests are represented in international discussions about the future of our industry.”

“As Australia’s automotive market becomes increasingly diverse and competitive, Australian dealerships need a seat at the table and a voice in conversations that will influence the future of automotive retail.”

“Our presentation will focus on market trends, the opportunities and challenges created by increasing competition, and why strong local and profitable partnerships remain critical to long-term success.”

“We will also be highlighting the role dealer councils can play in helping manufacturers better understand local market conditions, strengthen communication and build stronger, more sustainable dealer networks.”

Mr Voortman said the delegation also expected discussions on connected vehicle technology and the changing ownership experience.

“As vehicles become increasingly connected and software-driven, important questions continue to be examined globally around vehicle data, customer choice and the future ownership experience. The AADA’s role is to ensure the perspectives of Australian dealerships and their customers are part of those conversations.”

The AADA represents more than 3,900 franchised new vehicle dealers across Australia and is the national voice of the retail automotive industry.

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The Australian Automotive Dealer Association (AADA) is calling on the Australian Parliament to support the Australia-European Union Free Trade Agreement and help deliver its benefits for Australian consumers and businesses.

AADA welcomed the conclusion of negotiations earlier this year, particularly the removal of the 5 per cent tariff on passenger vehicles imported from the European Union.

AADA CEO James Voortman said the agreement builds on a longstanding automotive trading relationship between Australia and Europe and the deep commercial partnerships that have developed between Australian franchised dealers and European manufacturers.

“European automotive brands have been an important part of the Australian new car market for decades, supported by Australian dealers who have invested significantly in facilities, people, training and their local communities,” Mr Voortman said.

“Brands such as Volkswagen, BMW and Audi have longstanding franchising relationships with Australian dealers. These relationships have brought European vehicles and technology to Australian consumers while supporting dealerships, jobs and investment across the country.”

“This agreement strengthens those relationships by removing an unnecessary 5 per cent tariff on European vehicles and putting downward pressure on the cost of bringing those vehicles to Australia.”

Mr Voortman said removing barriers to trade would support consumer choice while contributing to the long-term sustainability of Australia’s automotive retail sector.

“Australia is home to one of the most diverse new car markets in the world. Maintaining strong trading relationships with major automotive markets such as Europe is important to ensuring Australian consumers continue to have access to a broad range of brands and vehicles,” Mr Voortman said.

“This agreement is also bigger than automotive. It represents an opportunity to deepen Australia’s economic relationship with Europe at a time when strong and open international trading relationships are increasingly important.”

AADA continues to believe the agreement should have gone further on reform of the Luxury Car Tax, but Mr Voortman said this should not stand in the way of securing the broader benefits of the agreement.

“We remain disappointed that the negotiations did not deliver more substantial reform of the Luxury Car Tax, but that should not prevent Australia from securing the wider benefits of this important agreement,” Mr Voortman said.

“After years of negotiations, Australia has an opportunity to strengthen an important economic and trading relationship.

“Australian dealers have a long history of doing business with European manufacturers. We urge the Parliament to support the agreement and provide greater certainty for businesses to continue investing in these relationships into the future.”

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Key Headlines

1. Used vehicle sales climbed 6.0 per cent in September to 258,127, the third consecutive monthly increase.
2. Four-wheel drive and all-wheel drive vehicles accounted for 46.2 per cent of sales, up from 44.6 per cent 12 months earlier.
3. Manual transmissions fell to just 6.6 per cent of used vehicle sales, while white remained the most popular colour across major brands.
4. EV sales reached 5,417 in September, up 29.8 per cent on August. EVs now make up 2.1 per cent of all used sales, up from 1.5 per cent in July.

1. Market Snapshot

Australia’s used vehicle market continued to build momentum in September, with sales rising for a third consecutive month as buyers increasingly favoured four-wheel drive vehicles and automatic transmissions.

New data from the Australian Automotive Dealer Association (AADA) and AutoGrab shows 258,127 used vehicles were sold nationally in September, up 6.0 per cent on August and 20.1 per cent higher than June.

The increase in sales came as the number of vehicles listed for sale continued to fall. Active listings dropped to 390,184 in September, down 7.7 per cent on August and 10.9 per cent below July’s peak of 437,855.

Despite stronger sales, vehicles took slightly longer to sell, with the average time on market increasing from 51.5 days in August to 52.8 days in September.

2. 4WDs Gain Ground

4WD and AWD share has edged up across the market over the past 12 months, from 44.6 per cent of sales in October 2025 to 46.2 per cent in September 2026.

Four-wheel drive remains king in the used Ute market, with more than four in five buyers opting for a 4WD and that share staying above 81 per cent every month since January. The 2WD Ute is becoming an increasingly rare sight, while SUVs are edging in the opposite direction, with front-wheel-drive compact models such as the Toyota Yaris Cross, Corolla Cross and MG ZS helping nudge the segment towards two-wheel drive.

3. Manual Cars Continue to Fade

Manual transmissions are becoming less common in Australia’s used vehicle market, with their share of sales falling from 8.3 per cent in October 2025 to 6.6 per cent in September 2026.

Manual Ute sales recorded the biggest decline by segment, with their share dropping 3.3 percentage points to 15.5 per cent. Manual transmissions accounted for just 2.0 per cent of used SUV sales in September, down from 2.5 per cent a year earlier.

Across the market, manual vehicle sales fell 19.0 per cent over the 12-month period, from 9,512 to 7,707.

4. EVs Edge Further into the Used Market

Reflecting the growth in the new market, used electric vehicle sales continued to gain momentum in the September quarter, with monthly sales climbing from 3,496 in July to 5,417 in September. EVs accounted for 2.1 per cent of used vehicle sales in September, up from 1.5 per cent in July.

Dealers played an increasingly significant role in the market, accounting for 75.4 per cent of used EV sales in September, while private sales remained broadly flat.

 

5. White Remains Australia’s Favourite Car Colour

Despite the variety of colours available to buyers, white continues to dominate the used vehicle market, ranking as the most popular colour across all major brands examined in the data.

Mitsubishi recorded the highest share of white vehicles among the listed makes, at 42.1 per cent, followed by Toyota at 39.0 per cent. When Toyota’s Glacier White is included, white shades accounted for 44.6 per cent of its sales.

Grey was a popular second choice across most brands, while colour preferences varied elsewhere. Mercedes-Benz stood out for its black vehicles, with black accounting for 19.1 per cent of sales. Mazda had a more evenly distributed colour mix, with red accounting for 9.5 per cent and blue 9.4 per cent, compared with 18.6 per cent for white.

6. General Market Statistics

1. 258,127 vehicles sold in September, a 6 per cent increase on August.
2. 390,184 vehicles listed for sale in September, a 7.7 per cent decrease month on month.
3. Dealer share rose to 43.9 per cent of sales.
4. 8 days average time to sell in September, compared with 51.5 days in August.

7. Reaction

“The data gives us an interesting snapshot of what Australians are looking for when they buy a used vehicle. Four-wheel drive remains a clear preference among Ute buyers, while automatic transmissions continue to dominate across the market. White also remains a popular choice, showing that while buyers have plenty of options, some trends are remarkably consistent,” said AADA CEO James Voortman.

“Whilst consumer preferences continue to evolve, and the decline in manual sales is a good example of that shift. For dealers, understanding what buyers want, from vehicle specifications to everyday practicality, is important when deciding which vehicles to stock and how to meet demand,” Mr Voortman said.

“September was the third consecutive month of sales growth, with 258,127 used vehicles sold nationally. Over the same period, active listings fell to 390,184, down 10.9 per cent from their July peak. In September there were 66 sales for every 100 vehicles listed, up from 55 in July, so more vehicles are selling from a smaller pool of stock,” said AutoGrab Chief Commercial Officer Saxon Odgers.

“Buyer preferences show up clearly in the sales data. Manual vehicles made up 6.6 per cent of used sales in September, down from 8.3 per cent in October 2025, and white was the most common colour for all ten major makes we examined. That information helps dealers decide what to stock, how to price it and how long it is likely to take to sell,” Mr Odgers said.

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The Australian Automotive Dealer Association (AADA) is calling for greater transparency and clearer information regarding connected vehicle technologies, following increased public discussion about vehicle privacy, cybersecurity and safety.

AADA CEO James Voortman said Australian dealers and their 64,000 employees are increasingly facing questions from customers about what modern connected vehicles are capable of, what information they collect, what functions can be accessed remotely and what safeguards exist to ensure these technologies remain safe and secure.

“Australian car buyers are asking legitimate questions about connected vehicle technologies and deserve clear answers,” said Mr Voortman.

“Those questions are not limited to privacy and data collection. Customers also want to understand how these technologies operate, what protections are in place and how manufacturers and regulators are managing potential cybersecurity and safety risks.”

“Dealers are the customer-facing part of the supply chain and are regularly asked questions about connected technologies which are standard features of modern vehicles.”

“We need an urgent debate on this issue informed by the facts, so that as an industry we can provide car buyers with confidence. We also need a thorough understanding of what the future regulatory landscape looks like.”

The AADA said responsibility for vehicle design, software systems, connected technologies and regulatory compliance rests with manufacturers and relevant government authorities, but industry should not be left without the information required to support customers.

“Manufacturers are responsible for the technologies they introduce to the Australian market, while government agencies and regulators play a critical role in ensuring appropriate oversight and public confidence.”

“This issue also highlights vulnerabilities in the Australian Consumer Law and makes it clear why manufacturers and not dealers should be liable for the products they supply to the Australian market.”

“If Australians are expected to embrace increasingly connected vehicles, there must also be a coordinated effort to ensure clear and accessible information is available to both industry and the public.”

The AADA believes greater collaboration between manufacturers, transport regulators, security agencies, dealers, consumer groups and the wider automotive industry is required to improve transparency and public confidence.

“Our objective is simple. We want Australian dealers and their customers to have confidence in the technologies entering our market, supported by factual information, transparency and appropriate safeguards.”

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Key Headlines

1. National used and demonstrator vehicle sales rose 1.3 per cent in August to 243,514 vehicles, the second consecutive monthly increase.
2. Sales of one-to-five-year-old used vehicles increased 5.4 per cent nationally, with Victoria narrowly beating NSW for the strongest growth among the five largest states.
3. Victoria recorded 14,148 sales, up 6.7 per cent, while NSW remained Australia’s biggest market with 16,956 sales, up 6.6 per cent.
4. Used EV sales jumped 19.4 per cent in August.
5. The Ford Ranger was the best-selling one-to-five-year-old used vehicle in seven of eight states and territories, with the Toyota RAV4 taking top spot in the ACT.

1. Market Snapshot

Australia’s used vehicle market continued its recovery in August, with sales rising for the second consecutive month and most states recording stronger activity.

New data from the Australian Automotive Dealer Association (AADA) and AutoGrab shows 243,514 used and demonstrator vehicles were sold nationally in August, up 1.3 per cent on July.

The near-new market was even stronger, with sales of one-to-five-year-old used vehicles increasing 5.4 per cent nationally to 58,090.

2. State versus State

The August data provides a clear snapshot of how Australia’s used vehicle markets are performing against each other.

New South Wales remained the largest market, with 16,956 one-to-five-year-old used vehicles sold during the month.

Victoria was the fastest growing of the five largest states, with sales increasing 6.7 per cent compared with July.

3. Ford Ranger Dominates State Markets

The Ford Ranger is the best-selling 1- to 5-year-old used vehicle in 7 of 8 states and territories and has held first place in every mainland state since June. The exception is the ACT, where the Toyota RAV4 outsold the Ford Ranger 27 to 19. The Toyota Hilux is second in 5 markets; in the Northern Territory the two utes together account for 20.4% of sales.

4. Chinese-Made Cars Among Australia’s Fastest-Selling Used Vehicles

Chinese-made vehicles are making a strong impression in Australia’s used car market, accounting for five of the eight fastest-selling models across the states and territories in August.

The BYD Shark 6 was the fastest-selling used vehicle nationally, taking an average of just 27.9 days to sell, while the BYD Atto 3 was Victoria’s fastest seller at 27.7 days.

Interestingly, fast-selling vehicles did not always command strong retained values. The MG ZST, for example, took just 23.2 days to sell in Queensland but retained 60.7 per cent of its original value. By contrast, the Suzuki Jimny, the best-retained model nationally, took 58.3 days to sell.

 

5. General Market Statistics

1. 243,514 vehicles sold in August, a 1.3 per cent increase on July.
2. 422,509 vehicles listed for sale in August, a 3.5 per cent decrease month on month.
3. Dealer share fell back to 40.9 per cent of sales.
4. Average days to sell slightly decreased to 51.5 for August, after last month’s high-water mark.

6. Reaction

“Australia’s used vehicle market continued to build momentum in August, but the state-by-state numbers show there is no single story playing out across the country,” said AADA CEO James Voortman.

“Victoria may have taken the title for fastest-growing major market, but NSW is still comfortably the biggest, with almost 17,000 one-to-five-year-old vehicles changing hands in August. Queensland, WA and South Australia also recorded solid growth, while Tasmania and the territories went backwards.”

“The Ford Ranger’s dominance of the used market is pretty remarkable, it was the top-selling one-to-five-year-old vehicle in seven of the eight states and territories. The ACT was the one market to buck the trend, where the Toyota RAV4 managed to beat the Ranger.”

“Used EV sales rose 19.4 per cent in August outpacing the movements in all other fuel types, albeit that EVs continue to make up a significantly smaller segment of the used market than petrol and diesel vehicles,” said AutoGrab Chief Commercial Officer Saxon Odger.

“Looking at 1-5-year old cars, five of the eight fastest-selling used vehicles across the states and territories in August were Chinese-made. The BYD Shark 6 was the quickest nationally at 27.9 days and retained 92.1 per cent of its original value.”

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The Australian Automotive Dealer Association (AADA) has congratulated the Albanese Government for expanding the DRIVEN Program to include EV servicing and repair equipment, a change that adopts recommendations put forward by AADA and recognises the significant investments being made by franchised new car dealers to support Australia’s transition to electric vehicles.

AADA CEO James Voortman said the announcement reflects recommendations made by AADA in its pre-budget submission and demonstrates that the Government has listened to industry concerns and understands the significant costs and operational challenges dealers face as they prepare their businesses for an increasingly electrified vehicle fleet.

“AADA welcomes the Government for recognising that Australia’s transition to electric vehicles requires more than charging infrastructure alone.

“Franchised dealers are investing millions of dollars in specialised equipment and workplace safety measures to support Australia’s growing EV fleet, and the expansion of the DRIVEN Program acknowledges these real-world costs.

“Recent record EV sales demonstrate that the transition is happening now. These changes will help dealers meet the challenges of the fastest transition the Australian automotive industry has ever experienced while ensuring motorists continue to have access to safe, high-quality EV sales, servicing and repair facilities.”

AADA consumer research shows that customers who are open to purchasing an EV are overwhelmingly looking to the new vehicle market, with 71 per cent saying they would consider buying a new EV over a used EV. This highlights the important role franchised dealers play in helping customers make the transition to EVs not just through sales, but through ongoing servicing, repairs and advice.

The AADA said the Government’s decision demonstrates the value of industry consultation and evidence-based policymaking.

“By adopting AADA’s recommendation to expand the DRIVEN Program, the Government has delivered a practical policy outcome that reflects the realities of modern automotive retailing.

“AADA looks forward to continuing to work with the Government on policies that support vehicle electrification while ensuring customers have access to the skilled technicians, equipment and dealer networks they need to confidently purchase, service and repair new vehicle technologies.”

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Key Headlines

1. National sales rose 11.8% in July to 240,311 units, recovering from a June dip caused almost entirely by dealer demonstrator clearance ahead of the financial year end.
2. Dealer used volume grew a healthy 9.1% in July. Private seller volume grew 26.2%, roughly three times faster. Dealer share of the near-new used market slipped from 71.8% to 70.1% in a month.
3. Dealers are taking around 22 more days than private sellers to sell equivalent 1 to 5-year-old vehicles, despite discounting less frequently and less deeply.

Market Snapshot and the EOFY Demo Effect

Australia’s used vehicle market rebounded strongly in July after a softer June, with national sales rising to 240,311 vehicles.

New data from the Australian Automotive Dealer Association (AADA) and AutoGrab shows the June decline was largely the result of end-of-financial-year demonstrator clearance activity rather than weaker underlying demand.

June’s 2.9% sales dip was not a demand story. It was a dealer demonstrator stock effect: dealers clear demo fleets ahead of the June 30 financial year end. Demo sales spiked from 17,547 in May to 22,427 in June, then collapsed to 11,418 in July, a fall of 49%. Genuine dealer used stock, excluding demo, held broadly flat through the demo spike (82,839 in May, 82,360 in June) before growing 9.1% in July to 89,857.

Dealers Selling More but Losing Market Share

While dealers increased used vehicle sales during July, private sellers grew at almost three times the rate.

Dealer used vehicle sales increased 9.1 per cent compared with June, while private seller sales rose 26.2 per cent.

Private sellers recorded stronger growth than dealers across every vehicle age category, despite dealers continuing to dominate the near-new segment.

The two channels remain structurally different businesses: 42% of dealer volume in July was 0-4 years old versus 10% for private sellers, while 61% of private volume was 11 years or older versus 24% for dealer.

General Market Statistics

1. 240,311 vehicles sold in July, an 11.8% increase on June.
2. 437,855 vehicles listed for sale in July, a 13% increase month on month.
3. Dealers accounted for 42.1% of the sales for the month.
4. Average days to sell jumped out to 52.1 for July, the highest point for the year.
5. Dealers achieved broadly the same retained values as private sellers while discounting less frequently and less deeply

Reaction

“The July rebound shows the June decline was largely a seasonal effect driven by end-of-financial-year demonstrator clearances rather than any softening in underlying demand,” said AADA CEO James Voortman.

“It’s encouraging to see dealers increase used vehicle sales during July. However, private sellers grew at a much faster rate, highlighting the competitive conditions across the used vehicle market.”

“The data also shows dealers are continuing to achieve similar retained values to private sellers while discounting less often. That suggests slower stock turnover is being influenced by broader market dynamics rather than pricing alone,” he said.

“Supply grew a little faster than demand in July. There were 437,855 vehicles advertised for sale, up 13 per cent on June, against 240,311 sold, up 11.8 per cent. The average vehicle took 52.1 days to sell, the longest of the year so far. A market can be busy and slow at the same time, and in July it was both,” said AutoGrab Chief Commercial Officer Saxon Odgers.

“The private channel is the larger half of this market. Dealers accounted for 42.1 per cent of July sales; private sellers moved 139,036 vehicles, close to 58 per cent of the total. Private sellers have held the larger share in each of the past three months, and that share widened again in July.”

“The days-to-sell gap barely moved across the quarter. Dealers took around 22 more days than private sellers to sell equivalent one to five-year-old stock in May, again in June and again in July. The consistency is the finding here, not the size of the gap. Three months at the same spread is a settled pattern rather than a one-month result”, he said.

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New AADA research finds cheaper running costs have overtaken environmental concerns as the number one reason Australians would consider an electric vehicle, as Chinese brands continue to gain a larger market share.

Australians are increasingly viewing electric vehicles as a way to save money rather than save the planet, according to new research released by the Australian Automotive Dealer Association (AADA).

AADA’s latest national consumer research has found that cheaper running and recharging costs are now the leading reason Australians would consider purchasing an electric vehicle (EV), overtaking environmental benefits from January this year and for the first time since the AADA began tracking consumer sentiment more than four years ago.

AADA CEO James Voortman will present the new research findings to more than 900 dealers and automotive stakeholders at the AADA Convention & Expo in Sydney today.

“This is one of the most significant shifts we have seen since AADA began tracking EV sentiment,” Mr. Voortman said. “For years, Australians considered EVs primarily for their environmental benefits. Today, the biggest attraction is their lower running and recharging costs compared with petrol or diesel vehicles.”

The research found that 45 per cent of prospective EV buyers nominate lower running and charging costs as a reason for considering an EV, making it the most important driver of future EV interest. At the same time, environmental motivations have continued to decline significantly.

“The conflict in Iran and renewed concerns around global energy markets have focused attention on fuel affordability and fuel security,” Mr. Voortman said. “Australians are increasingly viewing EVs through a practical financial lens rather than an environmental one.”

The study found that 55 per cent of Australians agree rising petrol and diesel prices make EVs more attractive, while EV consideration increased to 41 per cent of Australian drivers.

Australia’s automotive market is also undergoing unprecedented change. Australia is expected to have 67 vehicle brands competing in the market in 2026, rising to 75 brands by 2031 as manufacturers compete for a share of the growing EV market.

“The June new vehicle sales results show the transition is occurring more quickly than previously forecast, particularly for Chinese manufacturers,” Mr. Voortman said. “Based on recent sales trends, the AADA expects China to account for an even larger share of Australia’s new car market, reaching around 58 per cent by 2035, thereby exceeding previous estimates.”

“The Australian automotive market is undergoing the most significant transformation in its history,” Mr. Voortman said. “Consumer preferences are changing, technology is evolving, and new brands are entering the market at an extraordinary rate. More than 900 industry leaders will gather at the AADA Convention & Expo this week to discuss these trends and what they mean for dealers, manufacturers and consumers.”

“As this transformation accelerates, the Albanese Government must ensure the regulatory framework keeps pace. That means delivering stronger franchising protections for Australian new car dealers and modernising Australian consumer laws to ensure drivers remain protected as new brands enter the market. The pace of change is accelerating, and the policy settings that underpin consumer confidence, dealer investment and long-term market sustainability must evolve just as quickly.”

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The Australian Automotive Dealer Association (AADA) is calling on Treasury to exempt family-owned and small to medium-sized franchised new car dealership transactions from Australia’s new mandatory merger notification regime following the release of an independent report prepared by BDO Australia.

The report demonstrates that the current turnover thresholds unintentionally capture family-owned, regional and small to medium-sized dealership transactions, not because those acquisitions create market power, but because dealerships are high turnover, low-margin businesses that exceed the notification thresholds despite posing no meaningful competition risks.

AADA CEO James Voortman said the findings highlighted a significant unintended consequence of the new framework.

“This report confirms what AADA has been saying since the merger reforms were announced, that franchised new car dealerships are not the type of businesses these laws were designed to target. Unlike other industries, dealership competition is already heavily shaped by manufacturers through franchise agreements, dealer network planning and ownership limits.”

“Dealership acquisitions are typically driven by owner retirement, succession planning, increasing compliance costs, margin pressure and the need to achieve scale. They are not about accumulating market power or reducing consumer choice.”

Mr. Voortman said the timing of the reforms could not be worse for dealers already navigating unprecedented change across the industry.

“Dealers are investing heavily to meet manufacturer requirements, manage the transition to EVs and adapt to the impacts of the New Vehicle Efficiency Standard, all while facing rising costs and intense competition.”

The report identifies the Federal Government’s New Vehicle Efficiency Standard, rising compliance obligations and increasing capital investment requirements as key factors driving dealership succession and consolidation activity across the sector.

The AADA is urging Treasury to introduce either a specific exemption for franchised dealership transactions or a low-cost, expedited approval pathway that recognises the unique characteristics of the franchised automotive retail sector.

“Dealers are under pressure from the NVES, rising compliance costs, major facility investment requirements and shrinking margins,” Mr Voortman said.

“When a dealer sells, it’s typically about succession, viability and business continuity, not market power.”

“As part of the upcoming review of the merger laws, the Government should introduce an exemption for smaller franchised dealership transactions that pose no realistic competition concerns.”

“Dealers are already grappling with the impacts of the NVES, growing compliance burdens and significant investment requirements. The merger regime should not create another barrier to business succession, regional investment and dealership viability.”

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A new independent review commissioned by the Australian Automotive Dealer Association (AADA) has found that Australia’s consumer law framework is failing both car buyers and franchised new car dealers, leading to significant delays, increased costs and poor consumer outcomes.

The report, prepared by Emeritus Professor Jenny Buchan, concludes that key shortcomings in the Australian Consumer Law (ACL) are contributing to lengthy delays in resolving vehicle fault claims. The review found consumers can face delays of six to eight weeks in claim resolution, while state and territory tribunal hearings can take between 12 and 18 months. The report also highlights concerns that some manufacturers are denying reimbursement claims and failing to engage effectively in dispute resolution processes.

A 2017 ACCC market study concluded that manufacturers needed to overhaul the way they were handling consumer guarantee claims and review their commercial arrangements with dealers. This latest review finds those issues have deteriorated further. Its findings come at a critical time, as Australia’s automotive market undergoes unprecedented change, with industry forecasts indicating the number of vehicle brands operating in Australia will reach 75 within five years, a 92 per cent increase over the past decade.

“This review clearly shows that Australia’s consumer laws are not delivering the outcomes that consumers and new car dealers deserve,” James Voortman, CEO of AADA said.

“The evidence presented in this report indicates that some international manufacturers are either failing to engage with, or are not adequately responding to, Australia’s consumer law processes.”

“Ambiguous definitions and unclear procedures are creating unnecessary costs for businesses, placing additional pressure on tribunals and, most importantly, leaving motorists without access to their vehicle for extended periods.”

In response to the review, the AADA is calling on the Federal Government to introduce mandatory and earlier manufacturer participation in vehicle-related consumer claims, undertake a targeted review of key legislative definitions, and conduct a broader assessment of how the ACL operates in the new vehicle market.

“For most Australians, purchasing a car is the second-largest financial commitment they will make. Consumers have every right to expect a fair, timely and efficient process when faults arise,” Mr. Voortman said.

“Multinational manufacturers must take greater responsibility for the products they import in Australia and be active participants in resolving consumer disputes.”

Key Findings of the Review

• Delays of six to eight weeks in processing consumer defect claims.
• Tribunal hearings can take between 12 and 18 months to resolve disputes.
• Inconsistent manufacturer engagement in consumer law processes.
• Unclear legislative definitions creating inefficiencies and increased costs.
• Growing market complexity as the number of vehicle brands in Australia continues to expand.

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