This story first appeared in the April issue of AutoTalk – CLICK HERE to download the magazine FREE
But the vehicle importer remains wary about the outcome of the Motor Vehicle Standards Act (MVSA) for new and used vehicle imports and the impact it could have on the Australian vehicle imports and exports sector.
Autohub Australia managing director Daryl McIntyre told AutoTalk Queensland ticks all
the boxes.
“In a way, it would have been easier to start in Queensland and then come to Sydney,” he says.
“We have a good stronghold in Queensland; we have our own customs broker there. We currently have 13 staff, with one extra person starting in the coming weeks.
“We have been getting good enough demand to expand our operations in Queensland.
“Exports from the American side of the business are much stronger in the Gold Coast too. And there are more hail-damaged cars getting exported due to the hailstorms in Queensland.”
Autohub also has a big market share of Japanese imports in Queensland.
McIntyre says even though the company’s footprint is growing, its volumes are down.
“We are doing a similar amount of work but we are working harder for it due to the larger client base.”
That’s due to the current state of the vehicle import and export market in Australia, he says.
McIntyre has been involved with Autohub for close to two years and in that time the business has grown from four to 14 staff with the low volume of used imports currently allowed into Australia.
“Once the manufacturing sector leaves Australia there will be thousands of jobs lost and I see room for a lot of new replacement jobs in the supply chain should the Government relax the vehicle import laws,” he says.
“These jobs would be created from freight forwarders like us, container depots, shipping lines, the ports, customs, quarantine, compliance, detailers, repairers, purchasing, sourcing and spare parts.
“I strongly believe businesses as well as individuals should be able to import new and used vehicles to help consumer choice and reduce the price of vehicles for Australians.”
Autohub now handles door-to-door logistics from the United States, United Kingdom, Hong Kong, New Zealand, Singapore and Japan, ensuring individuals and businesses comply with import standards and making sure all due taxes are paid before entering Australia.
The Government is preparing to change the MVSA to allow individuals to import a vehicle that has been driven no more than 500km and is no older than 12 months every two years.
The changes, suggested by the Productivity Commission and backed by the Australian Competition & Consumer Commission, were initially meant to be more wide-reaching and extend to all used vehicles but were wound back, partly in response to lobbying by the new-car industry.
“The vehicle import industry is in a holding pattern, everyone is waiting on the decision of the MVSA review,” McIntyre says.
“Businesses are waiting on a final decision so they can move forward with their plans. That is the hardest thing about the industry – no one knows what the future will look like.
“The reality is that most businesses can’t or won’t go ahead with any investments on vehicles when they don’t know if they are going to be in business next year. If the compliance shops aren’t willing to spend their money to test new models, it just means that vehicle prices will go up and the cars are going to get older, as importers don’t have enough choice.”
If the Government announces a two-year transition period for importers, businesses will be willing to put more models on because they will know they can get a return on their investment in two and a half years, McIntyre says.
“But if the Government were to announce a one-year transition period there will be some models worth it and some that won’t be, but at least importers will be able to make a decision on something.”
Delays to the MVSA decision don’t help either, McIntyre says.
“It might be good in the sense that the Government needs to get the decision right but it is definitely not good for businesses right now.”
Ultimately, the challenge will be to adapt to whatever the changes might be as well managing the transition period, he says.
“We are hopeful the Government will make the right decision and gradually increase the used vehicle import numbers to Australia and we are currently preparing our business to be ready for the increased volume in 2018.”
Asked to describe the Australian market and Autohub’s growth plans for the rest of the year, McIntyre says the low Australian dollar has seen increased exports and he’s hoping more vehicle models will be available for import in 2018.
Importers concerned over latest Asbestos changes
Another key issue for importers is asbestos in imported vehicles and changes announced recently by
the Government.
“A complete lack of consultation” with the vehicle imports industry over the change could impact businesses, McIntyre says.
“We were caught by surprise – it’s very disappointing a change like this would be made without proper industry consultation. The main impact is just more red tape to import a vehicle.
“Many vehicles are from Japan which has been asbestos-free since the early 2000s so it should not have affected any of them, apart from more red tape which the Government said was meant to be reduced.”
“The Australian Border Force (ABF) has still not released enough information for us to know how they intend to police the vehicles for asbestos, what origins if any they are targeting, which is very frustrating for importers and customs agents across Australia.
“We are still are not sure of the impact on the older vehicles entering Australia via the pre-1989 scheme. We will continue to pursue ABF for more information.”
Importers will now need to declare their vehicles do not contain asbestos before receiving ABF clearance. Vehicle components of most concern are brake pads, head gaskets and transmission components.
Like Autohub, the Australian Imported Motor Vehicle Industry Association is concerned about the confusion over the change and says it will be urgently speaking with relevant government authorities to seek clarification.
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