Australia may not have an automobile manufacturing industry, but the sector is still worth tens of billions of dollars a year. Photo: MTA NSW.
The biggest body representing the Australian car industry has opened a new ACT branch, promising a welcome “boost to productivity, skills and support” for local car businesses.
The Motor Trades Association ACT (MTA ACT) was officially launched at an event at the National Museum of Australia, alongside bigwigs from government and industry.
And it comes at a critical time.
“The ACT automotive industry is facing critical workforce and technology challenges,” MTA NSW CEO Stavros Yallouridis told Region.
“Automotive technology is moving at a faster pace now than it has been, in areas like Advanced Driver Assistance Systems, lane change technology, advanced braking systems, as well as electric vehicle technology and improved standard vehicle technology.
“All of these areas need addressing in workshops across the ACT.”
We might not make our own cars anymore, but the automotive industry still contributes big bucks to Australia’s economy through businesses involved in selling, servicing, repairing, fuelling and maintaining the country’s fleet of 19.2 million vehicles.
Figures put it at 2.1 per cent of Australia’s GDP, or $39.35 billion per year, with 97 per cent from “small and family-owned enterprises”, according to the Motor Trades Association of Australia (MTAA).
The MTAA’s job, according to its website, is to “represent its member associations by educating and informing government and industry” about this “important role”.
“It proactively participates in the development of sound public policy on issues affecting or impacting the retail motor trades, small business and consumers.”
Motor Trades Association ACT 2025 relaunch. Photo: MTA NSW.
A recent major win includes reforms to the Franchising Code of Conduct designed to prevent “large multinational corporations imposing one-sided agreements” on car dealerships.
In the wake of the New Vehicle Efficiency Standard (NVES), it also forbids car manufacturers from “unfairly dumping excess high-emissions vehicles onto local dealers simply to meet compliance targets”.
“The decision to count emissions at the point of sale rather than importation is another significant win for dealers,” Mr Yallouridis said in March this year.
“This ensures they are not left burdened with excess inventory and financing costs due to regulatory loopholes being exploited by manufacturers.”
MTA ACT will operate under MTA NSW. Photo: MTA NSW.
The MTAA has also pressured the Federal Government to acknowledge the massive workforce shortages affecting the automotive industry by including it on its ‘Core Skills Occupation List (CSOL)’, which opens the door for employers to sponsor overseas workers to enter these roles.
Motor mechanics only receive about eight applications per job on average – less than half the national rate – and only 39 per cent of jobs are being filled.
Estimates suggest the sector is predicted to face a shortfall of 160,000 workers by 2031, with vehicle technicians the most in-demand.
“The automotive industry continues to have issues filling the skills gap,” Mr Yallouridis said.
“New technology has led to new thinking and new training for the sector. Additionally, the workforce continues to age, and as such, needs new apprentices so that the skills gap does not become even larger.”
And the situation is even worse here.
“Currently, the ACT faces one of the country’s lowest trade participation rates – only 9 per cent of the local workforce is in trades, well below the national average,” he added.
“The ACT is leading the country in electric vehicle (EV) adoption, yet apprenticeship numbers are not keeping pace. Key roles such as EV technicians are now on the ACT’s Skills Needs List, highlighting growing demand.”
The MTA ACT is not technically new, having been around since 1975 – albeit run entirely by volunteers and hampered by a “lack of resources and no full-time local infrastructure”. Now it will operate under the umbrella of MTA NSW.
Motor Trades Association ACT CEO Stavros Yallouridis. Photo: MTA NSW.
Founded as far back as 1910, MTA NSW currently represents more than 3000 businesses across the state, together employing 25,000 workers. In 2023, it also bought MyTradeStart, which provides support to apprentices getting into the automotive trades.
“The new MTA ACT will provide local businesses with direct support, policy advocacy, and access to workforce development initiatives tailored to the ACT’s context,” he said.
On the positive side, he said the ACT was unique for its “policy environment and national influence”, which made it the ideal place for “piloting innovation in areas like EV readiness, training initiatives, and sustainability programs”.
“As we look to the future, one thing is clear: our industry is changing, and quickly. From electrification and automation to skills shortages and regulatory reform, we’re facing both challenges and opportunities.”
