Motor Vehicle Dismantling and Used Parts Wholesaling in Australia - Market Research Report

Hit the brakes: The increasing age of the vehicle fleet has reduced demand for industry parts

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.

The Motor Vehicle Dismantling and Used Parts Wholesaling industry has faced challenging conditions in recent times. Growth in the number of vehicles fitted with crash avoidance technology has reduced the likelihood of serious motor vehicle accidents. Hence, demand from smash repairers for used parts has withered. The pandemic and associated lockdown measures significantly reduced people's movement, minimising motor vehicle use and decreasing the need for dismantling and used parts wholesaling services. But a rising motor vehicle price index has discouraged people from purchasing new vehicles and parts, with consumers opting to buy used parts to fix their current vehicles. The average age of Australia's vehicle fleet has also increased, limiting demand falls for used auto parts, as older vehicles are more likely to need repairing. Overall, revenue has plunged at an annualised 5.2% over the past five years and is expected to total $926.1 million in 2023-24, when revenue is expected to sink by 1.7%. Industry operators primarily dismantle motor vehicles or motorcycles, and wholesale the used parts obtained in the dismantling process. Industry operators can also wholesale used motor vehicle parts online. However, pure online wholesalers are excluded from the industry.