AAAA critical issues report highlights EVs, ADAS and new car brands

Australia’s independent automotive repair sector is facing one of its most complex periods of change, as electric vehicles (EVs), advanced driver assistance systems (ADAS), and an influx of Chinese-built models reshape the way workshops operate.

These shifts are highlighted in the Australian Automotive Aftermarket Association’s (AAAA) 2025 Critical Issues Report, released at the Bridgestone Family Channel Conference in Sydney in November.

AAAA government relations and advocacy director Lesley Yates said that despite mounting pressure, the sector remains committed to supporting motorists.

“With clear guidance and the right people, workshops are equipped to promise: the whole job, done right, done here,” she told conference delegates.

EV uptake modest, readiness growing

One of the key themes emerging from the report is the tension between investment and demand: workshops are rapidly building EV skills and equipment, yet battery EVs are projected to make up only about seven per cent of the national car parc by 2030 – 10 per cent including plug-in hybrids – with many workshops questioning whether public interest in EVs may be overstated despite non-plug-in hybrids gaining strong market share recent years and sharing many components and safety considerations with battery electric and plug-in hybrid models.

Despite scepticism, EV preparedness across the sector continues to build.

According to the AAAA, 21 per cent of workshops now report they are equipped to service hybrids and EVs, supported by investment in high-voltage safety training, battery and thermal diagnostics, insulation-resistance testing and specialised PPE.

Workshops are also streamlining software and workflow processes to complete EV repairs safely and efficiently.

Larger metropolitan workshops, often employing auto-electricians and equipped with broader diagnostic capability, are more likely to complete EV and hybrid work in-house. By contrast, smaller or more traditional operators remain more likely to decline these jobs, citing limited experience, safety concerns, and the high cost of specialised equipment.

Although EV service volumes remain relatively low, many workshops that have not yet invested in capability plan to do so over the next few years as electrified vehicles become more common on Australian roads.

ADAS goes mainstream but challenges remain

Alongside the shift to electrification, the report highlights the growing prominence of advanced driver assistance systems (ADAS) in newer vehicles.

Currently, all new vehicles sold in Australia are required to be equipped with automatic emergency braking (AEB) at the very least and ADAS features are already present in about one-third of registered cars. This is forecast to reach almost 10 million vehicles by 2030.

Any repair that affects a vehicle’s sensors – such as windscreen replacement, suspension work, ride-height changes or steering adjustments – may require precise ADAS validation or calibration.

While forward-looking workshops have invested in level floors, controlled lighting, alignment equipment and physical targets, many smaller or regional businesses still rely on dealerships for ADAS-related work.

Technicians working on mechanical, tyre, glass, and collision repairs face challenges with ADAS calibration and want simpler, consistent guidance rather than complex, model-specific instructions, the report notes.

Chinese vehicles drive new demands

One of the fastest-moving shifts highlighted in the report is the rapid rise of Chinese-built vehicles on Australian roads, a trend already reshaping the mix of models entering independent workshops.

These newer platforms often come with distinct diagnostic requirements and evolving software and parts systems, prompting workshops to expand their scan-tool coverage, update workflows and ensure technicians can service these vehicles confidently. 

Technician shortage threatens growth

The most significant challenge highlighted in the report is Australia’s shortfall of around 40,000 technicians, putting considerable pressure on the automotive industry. 

Some of the impacts include longer repair times, increased appointment waiting periods and even jobs being turned away.

Workshops investing in training, secure data systems and modern diagnostic tools are more likely to achieve higher first-time fix rates, reducing the number of customer re-visits and increasing business efficiency.

Meanwhile, smaller businesses – especially those trying to build expertise in EV servicing, ADAS calibration and OEM-level programming – are struggling to keep up.

Unique challenges for regional workshops

Workshops outside Australia’s major cities face additional challenges due to the diversity of vehicles they service, including heavy commercial trucks, agricultural machinery, and off-road equipment.

Access to reliable service and repair information is critical to ensuring productivity and efficiency, yet delays in obtaining the necessary data or specialised tools often hinder their operations.

Some technicians say they have spent up to five hours diagnosing faults on heavy machinery simply because the required service information is unavailable.

Although many regional workshops have the skills to handle complex tasks, these structural challenges leave many regional workshops at a disadvantage compared to their metropolitan counterparts.

An industry adapting under pressure

The report identifies several national priorities for 2026–27, including keeping automotive trades on skilled migration priority lists, improving employer-sponsored migration programs and strengthening apprentice retention through paid training and clear career pathways.

Consistent national rules governing ADAS validation and expanded micro-credentials in high-voltage EV systems, diagnostics, OEM programming, immobiliser access, and ADAS calibration are also needed.

The rise of Chinese-built models will require broader tool, data, and training access for workshops to continue delivering safe, timely, and affordable repairs.