Vehicle Parts Delays Renew Push for Consumer Law Reform
Synopsis
Lengthy waits for replacement components and refunds are fuelling calls to overhaul Australia's consumer laws and improve accountability across the automotive industry.
Australia's consumer law review is back on track with the automotive dealer sector urging the federal government to update laws they argue no longer reflect contemporary, international supply chain models.
The automotive dealer industry has lodged a submission titled the Motor Vehicle Dealers Report to be taken into account for a review of Australia's motor vehicle dealership sector.
In the report, the Australian Consumer Law has exposed a gulf between consumers, dealerships, and vehicle manufacturers caused by delays in securing replacement components and a surge in disputes.
Supply Chain Pressures Continue to Test Existing Laws
Under the current framework, even though manufacturing is solely a manufacturer's purview, including replacement components, supply chain and distribution across the world, the dealership is held responsible for the vehicle's warranties and the customer.
While parts delays due to ongoing global shortages are a widespread issue, the current legislation may make it challenging to assign responsibility to a specific player.
Changes are sought in the definition of a repair obligation in cases where crucial parts can't be delivered within a reasonable timeframe. Enhanced dispute resolution pathways and communication standards have also been proposed to support greater transparency and certainty for consumers during extended waiting times.
Automotive Industry Still Managing Parts Constraints
Although the global automotive sector has largely recovered from post-COVID vehicle production bottlenecks, the supply of a few specialized electronic parts and specific replacement components continues to hold up repair schedules in Australia and key global markets, including the US, Canada, the UK, and several European countries.
Australia, in its own right, remains one of the dominant markets in the region, with 1,220,607 new vehicles sold in Australia in 2024, a historically high second annual sales period according to the Federal Chamber of Automotive Industries (FCAI).
Given the sheer volume of cars being purchased, a large number of warranty repairs can become affected, even when component availability is restricted.
Manufacturers supplying into numerous global markets are also grappling with the dilemma of inventory planning, logistics and after-sales support.
Stakeholders across the sector, including vehicle owners and dealership representatives, believe that modernised consumer legislation would offer greater clarity to various stakeholders within the automotive supply chain and support customer rights during extended periods waiting for vehicle repairs.
Source: The West Australia
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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