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May 2007 - US Aftermarket Magazine article highlights Australian Market

Extract from Speciality Equipment Manufacturers Association (SEMA) magazine interview with the Australian Automotive Aftermarket Association (AAAA) Specialty Councils.

4WD AND PRTC COUNCILS GO FULL STEAM AHEAD

 In recent years, the AAAA has created two new Councils designed to address issues facing its specialty-equipment members.  In 2005 the Performance Racing Tuning Council was launched and in 2006, the Australian  4WD Industry Council.

PRTC Chairman Graham Scudamore-Smith advised that the council has set a high priority on gathering data on the specialty-equipment sector, through an industry survey.  “When the PRTC was launched, we realised no definitive data was available regarding the size and scope of the Australian performance industry,” he said.  “When lobbying governments, we need to be able to quote industry data, including employment rates, manufacturing volumes, export potential and the overall impact of the economy that the performance industry makes.” 

And there are clearly a number of legislative and regulatory issues keeping the  busy.  Among the ‘hot issues’ identified by the PRTC, according to the Council’s liaison, Ben Bartlett, are aftermarket seats, steering wheels, lighting and exhaust systems.

A ban on any additional vehicle lights is also being implemented.  Once fully in place, the PRTC noted that all lights aside from headlights, driving lights and fog lights will be prohibited for all on-road vehicles.  These changes will affect most accessory lights, including special purpose lighting on or under the vehicle body, during on-road use of the vehicle.  South Australia will be the first state to implement these changes, with Victoria also announcing a similar imminent ban.

In addition to seats, steering wheels and lights, exhaust noise is coming under increased governmental scrutiny.  “From speaking with a number of key suppliers and retailers of exhaust systems, we understand that a tightening of legislation regarding exhaust noise and emissions will be high on the agenda of all state regulators going forward,” Mr Bartlett said.  “New South Wales is already reviewing Noise Control Legislation, and the AAAA is in consultation with the Department of Conservation and Climate Change.”

AAAA’s newest council is the 4WD Industry Council.  Council coordinator Grahame McCraw and Committee Chairman Ray Smith-Roberts believe the 4WD industry in Australia is in a period of relative health, despite feeling the pinch of recent fuel price hikes.

The broad category continues to grow, Mr McCraw expanded, but with an internal shift from the large Toyota Landcruiser, Nissan Patrol, Mitsubishi Pajero, medium Jeep Cherokee, Toyota Landcruiser Prado/ Kluger/Highlander, Ford Territory, Nissan Pathfinder, Landrover Discovery four-wheel drive to the ‘soft-roader’ lighter four-wheel drive, such as the Land Rover Freelander, Toyota RAV4, Mazda Tribute, Nissan X-Trail and Suzuki Grand Vitara. Surprisingly, the luxury segment, such as BMW X5, Range Rover, Jeep Grand Cherokee, Lexus RX, Mercedes Benz M Class, has grown by 22.2 per cent since 2004.  The light-truck market consists mostly of Toyota HiLux, Nissan Navara, Ford Ranger, GM Rodeo, Ford F-250/-350, Toyota Landcruiser 75 series and Nissan Patrol Cab Chassis.

Mr McCraw also said that the dual-cab market is growing as consumers see the advantage of a commercial utility combined with the passenger capacity and creature comforts of a sedan.  The trend to dual cab is healthy for the 4WD accessory market, equipping these vehicles for off-road work.  Mr Smith-Roberts agreed and noted, “…new registrations are down 15.2 per cent and 18.9 per cent respectively for large and medium SUV sales while the 4x4 light-truck segment is now on top of the sales charts and has increased 7.8 per cent in the same period.”

All indications are that the market is continuing to grow, though at a reduced rate because of fuel prices.  Mr Smith-Roberts noted that 4x4 and SUV sales are showing signs of trending back upward.  “Many segments of the industry are directly influenced by new-vehicle sales as accessories and equipment are generally installed at, or very close to, the time of a new-vehicle purchase,” he said.  “To this point, these segments are slightly down in line with vehicle sales.  Other segments relating to touring and recreational use are growing.”

According to Mr Smith-Roberts and Mr McCraw, the most popular accessories are bull bars, suspension modifications, winches, touring and off-road driving accessories (such as air lockers, vehicle-protection products, UHF radios, GPS, roof racks, bed liners and interior accessories).  In-car navigation and entertainment electronics are also among the top products sold for this segment.

One of the main goals of the new council, noted Mr McCraw, is to counteract the negative attention the industry has been getting lately and the very real legislative and regulatory threats to 4WD vehicles.  “The various lobby groups, pedestrian interest groups, media organisations and environmental lobby groups have been increasingly successful in their efforts to discredit and restrict the activities of the important 4WD segment of the Australian automotive industry,” he said.  “The 4WD Industry Council is our industry response to this pressure.”  .  Left unchecked, it is reasonable to expect that the activities of these groups will be detrimental to the future of the 4x4 accessories market.

“A major issue for 4WD vehicle owners is the variance in interpretation of regulations across the various state jurisdictions,” he said.  “As with much regulation, there are grey areas open to individual interpretation in different cases.  Variations in wheel and tyre regulation between similar 2WD and 4WD vehicles are a concern for 2WD SUV owners.  The 4WD Industry Council has as a key goal to influence and clarify regulations concerning 4WD vehicle modification.”

When asked about the level of police scrutiny of customised 4x4 vehicles, Mr McCraw remarked that government officials and law enforcement agencies have been increasingly attentive towards them in recent years.  “There is an increased tightening of vehicle regulations in most states,” he noted, “and the sanction of vehicle impoundment is being more widely included in regulations”.  AAAA is working with all jurisdictions to set reasonable guidelines that are acceptable to industry and regulators.  Mr McCraw said that the council “will utilize the broad level of expertise of its members to provide advice and education to both the government and industry and to promote professional and responsible business activities by its members.”  AAAA already represents the 4WD industry on standards committees and at government inquiries; however, it is our view that a much more sophisticated, targeted and proactive response from the industry is required.”

All vehicle modifications in Australia must maintain vehicle compliance with ADRs and state registration requirements.  Everything from brake-system design and performance, safety items, lighting, to seat-belts and pollution-control equipment falls under Regulation, however, Australian modification laws currently vary from state to state.

Commenting on the difficulties of standardising regulations across Australia, Bartlett said, “The Federal department has no constitutional power to enforce that each state complies; hence, it is a difficult task to have a truly National Code of Practice of Light Vehicle Construction and Modification (now known as Vehicle Standard Bulletin 14) (http://www.dotars.gov.au/roads/safety/bulletin/vsb_ncop.aspx) introduced.  Much of VSB14 was already legislation in states before this document was constructed, however, areas including wheels and tyres, suspension, seating, LPG conversions and engine modifications do vary considerably in each state.”  He noted that the difficulties manufacturers currently face with different requirements in different State markets would continue if VSB 14 is not adopted nationally.

The PRTC and the 4WD Industry Council have made it a high priority to push for a nationwide adoption of VSB14 .  As Mr McCraw noted, “VSB14 is a document that was almost 10 years in the making and finally published in February 2006.  The AAAA is promoting some adjustments to VSB14 and common application across the nation”.

To bring all of the players together, the AAAA is piloting an industry consultation process in Queensland.  The Quensland Automotive Working Party, meets regularly combining State Transport Department, Police Traffic Division and other Automotive Associations to discuss issues.  Mr Bartlett noted that the AAAA will begin setting up similar groups nationwide if this effort is successful.


 

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