LEADING THROUGH THE FOG: WHY DIVERSIFICATION IS OUR BEST DEFENCE IN 2026

As we move into 2026, it’s clear that the sense of predictability many hoped would return in the post-pandemic period hasn’t quite materialised

Stuart Charity, Chief Executive Officer

Instead, many businesses are operating in an environment shaped by economic, technological and geopolitical uncertainty.
For manufacturers, exporters, retailers and distributors across the automotive aftermarket, conditions have become more challenging. Global markets continue to fluctuate under shifting trade policies, renewed tariff pressures and ongoing geopolitical instability, making planning, investment and long-term market strategy increasingly complex.
We’re seeing this clearly in vehicle technology. The transition to electrification has not followed the smooth, linear path many expected. While the number of EV models continues to grow, consumer uptake has levelled off in some segments. At the same time, hybrid vehicles are accelerating faster than anticipated, reshaping demand and catching even major global manufacturers by surprise. This uncertainty is being felt right across the aftermarket.
In times like these, the old saying about not putting all your eggs in one basket becomes more than just good advice – it becomes a practical strategy for resilience. Relying too heavily on a single market, a single technology pathway, or a narrow set of assumptions increases risk, particularly when global conditions are so fluid.

A significant development for our industry
It is against this backdrop that I’m pleased to share an important development for the automotive aftermarket. The AAAA has been confirmed by the Federal Government as the only automotive industry peak body approved to participate in the new Trade Diversification Network (TDN).
Established under the Government’s Accessing New Markets Initiative, the network brings together national industry peak bodies to work with Austrade to support exporters to diversify into new markets and capitalise on growth opportunities in existing ones.
For our industry, this is a meaningful step forward. It gives AAAA a formal, funded role to help design and deliver export-focused support tailored specifically to automotive aftermarket businesses, strengthening our ability to support members at a time when diversification is no longer optional – it is essential.

Why this matters now
The reality of 2026 is that many of the forces shaping our operating environment sit beyond the control of individual businesses. We can’t control global tariffs, geopolitical tensions or the pace of technological change. What we can control is how prepared we are to respond.
The Trade Diversification Network is designed to help Australian businesses build that preparedness. For the automotive aftermarket, it provides a pathway to reduce reliance on single export markets and pursue growth opportunities that better reflect today’s global conditions.
AAAA’s initial focus under the program will include regions such as Europe, the Middle East and Southeast Asia, where Australian automotive aftermarket products are well regarded and where diversification opportunities are strongest. These markets offer scale, demand for high-quality products and the potential for more sustainable long-term export growth.

What happens next
This is not a program that will be developed in isolation. Over the coming months, we will work closely with industry and with our Automotive Product Manufacturers and Exporters Council (APMEC) to shape priorities and determine where support will deliver the greatest value.
Expressions of interest will be called for shortly, with member input central to determining the mix of activities delivered under the program. Our focus will be on practical initiatives that improve export readiness, provide clearer market insight, and help connect Australian businesses with credible international partners.
This approach reflects what AAAA does best. Our role has always been to lead on behalf of the sector – advocating for our industry, connecting businesses and helping members navigate change. Securing this funding reflects the strength and credibility of the automotive aftermarket as a vital contributor to Australia’s economy.

Reassurance in uncertain times
Uncertainty is never comfortable. It can delay decisions, dampen confidence and add pressure to already stretched businesses. But the automotive aftermarket has repeatedly demonstrated its adaptability, innovation and resilience.
Importantly, the work AAAA does – from advocacy and industry leadership to initiatives such as this – is made possible by the ongoing investment and support of our members. That collective commitment strengthens our ability to represent the sector and deliver outcomes that support long-term industry sustainability.
2026 will bring challenges, but it also presents opportunity for those prepared to diversify and adapt. With this program, and through our broader industry leadership, AAAA will continue working to ensure our members are well positioned – not just to manage uncertainty, but to grow through it.
Expo opportunities
Speaking of opportunities, the Australian Auto Aftermarket Expo in 2026, co-located with the Collision Repair Expo, will be the industry’s largest and most valuable event. Free to attend, it will run from 14-16 May 2026, showcasing the latest technology, equipment and global brands, alongside exclusive training programs delivered by leading local and international experts, plus unparalleled opportunities to connect with peers and partners. Don’t miss out.

Tickets are available at www.aftermarketexpo.com.au