CEO’s message

Here’s a big question for you to start the new working year with: what will your business look like in 10 years’ time? If you’ve got a business plan tucked away in a drawer or on the shelf, maybe you have a clear answer to that. Maybe it’s more staff or bigger premises or more hoists. Maybe you’re close to retirement and it’s a succession plan rather than a business plan that will guide the next decade of your business operations. Maybe you don’t have a plan at all. We know from the 2022 State of the Nation report that nearly two-thirds of Members don’t have one. (In which case, we hope this edition of Ignition might spark something for you, and you put some thought into it as a priority for 2023. It’s not too late to make it your New Year’s resolution.)

Whether you’ve got a plan or not, that 10-year time frame is one that should concentrate the minds of everyone operating a business in the automotive aftermarket in Australia or New Zealand. Why? By 2033, most carmakers will have switched to only manufacturing electric vehicles. Many, including Alfa Romeo, Lexus, Mercedes-Benz, Volvo, and BMW, have committed to producing only EVs by 2030. Nissan, Toyota, VW, GM, Honda and Hyundai all have similar commitments — promising to be all electric by somewhere between 2035 and 2050 (if economic conditions, government regulations or consumer demand don’t compel swifter change).

But it’s a safe bet that by 2033, a lot of the cars about to come out of warranty and make their aftermarket debut will be electric vehicles. In the years thereafter, we can assume the percentage of EVs rolling onto workshop aprons will only increase, and the number of internal combustion engine vehicles will proportionally decrease. Will you be ready for that transition when it comes? If not, the good news is you have the next decade to watch, learn, and plan.

Let that research and planning task start today, if you haven’t begun already. This edition of Ignition is filled with great insights and advice on the workshop of the future. We’ve got research from our team, who have been to Europe investigating EV adoption to find practical lessons for the Australian and New Zealand aftermarket.

Separately, we’ve also got great reads on a digital startup that is set to revolutionise the way people choose which car to buy, and advice from one of our parts Preferred Suppliers on surviving the spare parts shortages and price increases that have been affecting the industry.

Cover to cover, you’ll find this edition of Ignition brimming with insights and knowledge designed to help you meet the challenges not just of today, but of tomorrow. Our plan is for us all to be stronger together today, in 10 years and for many years beyond that.

Happy New Year.