The Australian Automotive Aftermarket Association (AAAA) is urging the government to act on manufacturing funding commitments, which are essential to the growth and competitiveness of the automotive manufacturing industry.

The AAAA, the peak body for the automotive aftermarket industry, was encouraged by last year’s announcement of the $15 billion National Reconstruction Fund and the more recent $22.7 billion Future Made in Australia Fund, which sparked optimism within the industry. However, the lack of clear guidance and access to these funds has left many automotive manufacturers frustrated and uncertain.

“Our manufacturing industry needs clear action now to ensure we can continue to innovate and compete on the global stage,” said Stuart Charity, CEO of the AAAA.

“It’s been over a year since the funds were announced and the industry is still waiting for details on how to access 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,” said Stuart.

The automotive manufacturing industry is particularly concerned about the complexity of eligibility requirements, which often exclude 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 being made inaccessible to the very businesses that could drive growth.”

“The Honourable Tim Ayres, who is the new Assistant Minister for a Future Made in Australia has a chance to be a real advocate for the automotive manufacturing industry, which contributes so much to Australia’s economy.

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 government and industry are on the same page. If we want manufacturing to continue to thrive it is vital that a clear automotive manufacturing roadmap is developed in partnership with the federal government,” said Ricciuti.

The AAAA has written to the new minister seeking action regarding the Future Made in Australia Fund, and will continue to campaign on behalf of its manufacturing members.