The Australian Automotive Aftermarket Association (AAAA) wants the government to act on manufacturing funding commitments.
It says the announcement of the $15 billion National Reconstruction fund and the more recent $22.7 billion Future Made in Australia fund sparked optimism within the industry.
However, according to the AAAA, the lack of clear guidance and access to these funds has frustrated and made many automotive manufacturers uncertain.
“Our manufacturing industry needs clear action now to continue to innovate and compete on the global stage,” AAAA chief executive Stuart Charity says.
“It’s been over a year since the funds were announced, and the industry is still waiting for details on accessing this critical support. The lack of progress is not only frustrating but is also putting our industry at a disadvantage.”
The government’s announcements without follow-through could exacerbate existing challenges in the sector, including global supply chain disruptions, technological advancements in ADAS and EVs, and increasingly harsh regulations.
“Our industry is navigating complex challenges, and the promised funding could provide crucial support in adapting to these changes. However, without clear guidance and timely allocation, these opportunities remain out of reach,” Charity says.
“The automotive manufacturing industry is concerned about the complexity of eligibility requirements, often excluding small and medium-sized businesses with innovative ideas.
“The government aims for a guaranteed 10-times return on investment, but this expectation is unrealistic for many in our sector. Instead of fostering innovation, these funds are inaccessible to businesses that could drive growth.”
“Tim Ayres, the new Assistant Minister for a Future Made in Australia, has a chance to advocate for the automotive manufacturing industry, contributing so much to Australia’s economy,” he says.
Gino Ricciuti, Chair of the Australian Automotive Products Manufacturers and Exporters Council (APMEC), has echoed the AAAA’s call for funding commitments.
“Our industry is ready to evolve into the EV space, producing global quality products as we have always done, but we need a plan to ensure that the government and industry are on the same page. If we want manufacturing to continue to thrive, a clear automotive manufacturing roadmap must be developed in partnership with the federal government,” Ricciuti says.
The AAAA has written to the new minister seeking action regarding the Future Made in Australia Fund.
