The changing automotive landscape
This research bulletin explores the following aspects of the automotive industry:
- Understanding the current state of the Automotive sector
- The changing landscape
- Evolving workshops – technological advancements
- Way forward
The Changing Landscape
The Australian Automotive Aftermarket industry is growing rapidly and faces a shortage of 28,000 skilled technicians and 14,000 apprenticeship vacancies. By 2030, 79,000 mechanics will be needed; of these, 32,000 roles are expected to remain unfilled.1
In addition to the surging shortages, the nature of work is evolving. Automotive occupations have shifted in tandem with the evolution of our typical car. The average car on the road tends to have a larger proportion of electrical components than previously. Similarly, these vehicles require the greater use of diagnostic tools and equipment.2
Understanding the Current State of the Automotive Sector
Figure 1: Automotive Industry Timeline
The evolution of automotive technology (Figure 1), particularly the growing prominence of Electric Vehicles (EVs) and advanced driver-assistance systems (ADAS), leads to a skills shift as technicians adapt to new technologies, tools, diagnosis, and repair methods. The adoption of advanced technologies can drive greater competition and elevate consumer expectations. Automotive workshops are at the forefront of adopting some of these technologies (Appendix A) and were some of the first businesses to deploy AI solutions relating to stocking based on customer bookings, for example.
Current and Future Landscape
Currently, 0.81% (159,920 cars) of the Australian car park is occupied by Battery Electric Vehicles (BEVs) (Figure 2).3 In 2022–2023, EV sales surged by 19,194 units.4 However, the EV-dedicated qualification, Certificate III in Automotive EV Technology, had 68 enrolments in 2023.5
The continued successful adoption of EVs and the enablement of Net Zero objectives are contingent on a workforce of the future that can adequately service, maintain, diagnose, and repair such technologies. Most dealers are actively seeking more apprentices or upskilling current staff to grow their technician workforce, with online job advertisements rising by 87% between 2018 and 2022.6 In 2023, only 41% of advertised EV technician positions were filled.7 A shortage of senior technicians limits their ability to train new recruits. While dealers are open to hiring skilled overseas technicians (68%), high costs and administrative barriers make it difficult.8
Figure 2: Australian Carpark as of 31 January 2024
Evolving Workshops – Electric Vehicles
Despite the name, an EV Technician is not the only person working on an EV in a workshop. Other occupations are required to work on EVs or BEVs (Table 1). These occupations would need (at times) limited knowledge of an EV as their work would be largely consistent across EVs, hybrids, and internal combustion engine (ICE) vehicles. For example, Small Engine Technicians do not directly repair or replace high-voltage batteries, but they may still require EV safety skills to assess and work around battery-powered equipment. Before servicing an electric lawn mower, for instance, they must be able to determine whether the battery is safe to handle or if it should be isolated by a qualified specialist.
Table 1: EV Skills Needed by Occupation Type
End-of-Life (EOL) EV Battery
Australia's end-of-life EV battery value chain is still largely undeveloped, despite the rising number of EVs on the road. About 15% of consumers believe that it's the vehicle dealer's responsibility to ensure there is sufficient charging infrastructure.9 The growing demand for EV services and EOL battery management highlights the need for specialised training in technology and battery recycling. Despite the fact that battery recycling is downstream from the Automotive industry, there is still a role for the industry to play in the battery recycling ecosystem. For example, EV batteries, at the end of their life, are usable as stationary batteries, and someone in the workshop would need to depower, isolate, and remove the battery and make it safe for handover or transport out of the workshop. Skills relevant to this handover would be needed in a workshop to enable Automotive businesses to play an important role in the circular economy.
Advanced Driver Assistance Systems (ADAS)
Many automotive manufacturers are incorporating AI-powered ADAS to improve vehicle safety. These systems include features like adaptive cruise control, traffic sign recognition, forward-collision warning, and drowsiness detection. ADAS helps ensure better vehicle control even in challenging driving conditions, minimising the risk of road accidents.10
ADAS attracts new apprentices but poses challenges for VET providers due to the industry's reluctance to share proprietary systems. There are also training concerns where Registered Training Organisations (RTOs) do not have the equipment necessary to train workers in the new technology. This absence can create a lag in adoption, meaning the technology will sit idle (or not be fully used) until the training of the existing workforce is completed.11 Australia tends to import both ADAS and its relevant diagnosis, repair, and maintenance software. The skills relevant to developing and maintaining such systems are largely delivered through on-the-job training or higher education qualifications in data science and programming. As the Automotive industry leads the development and implementation of these advanced technologies, a conversation is needed on whether we are happy to continue importing such skills and services or whether we would prefer domestic alternatives.
As EVs become more prevalent, ICE vehicles may experience accelerated scrapping rates.12 Existing technicians will need to be multi-qualified to service both types of vehicles. With around 60,000 technicians in 2023, including 46,000 in the repair and maintenance sector, the industry is already facing a shortage of nearly 40,000 technicians, compounded by the approaching retirement of 12% of the workforce.13,14 While there is significant potential to upskill this workforce, the uptake of available EV training has been low since 2021.15 To ensure a smooth transition and meet future service demands, investment in technician training, improved working conditions, and industry-wide awareness is critical.
A way forward
Potential actions:
Potential actions are only indicative of how AUSMASA and other stakeholders could respond to the feedback we have received. These are subject to shifting priorities as relating to our remit, our instructions from DEWR, stakeholder consultations, and other safety and urgent industry needs and trends. We recommend consideration of these actions by our stakeholders, where relevant.
- Conduct research into the skills needed for high-voltage isolation, hydrogen safety, and battery systems (vehicles and mobile machinery).
- Engage stakeholders on the need for restricted electrical licences for automotive and mobile plant technicians.
- Analyse training products to explore better alignment between AUR and UEE qualifications for electrification and pathways for automotive occupations to obtain isolation and depower skills.
- Map trade evolution to understand how automotive roles are changing and converging
- Engage stakeholders on qualifications for remote area technical roles.
- Engage regional stakeholders to understand workforce supply/demand dynamics.
- Investigate flexible training pathways that recognise overlapping foundational knowledge across trades.
- Conduct gap analysis to determine if current qualifications are outdated.
- Research emerging technologies (e.g., 3D printing, AI, composites) for integration into training.
- Investigate VET trainer shortages, especially in EV-relevant areas.
- Explore micro-credentials, stackable units, and AI-supported RPL to modernise training systems and reduce barriers.
- Research workforce demographics, including ageing trends and retention issues in remote regions.
- Identify successful retention strategies in remote and regional areas.
- Conduct workforce planning to assess the effectiveness of succession planning and retention efforts.
- Research early education pathways to support career awareness and structured support.
- Identify ICT and digital skills needs related to EVs and advanced vehicle technologies.
- Investigate digital literacy gaps, particularly among older workers.
- Investigate the need for pathways to deliver relevant skills that enable the diagnosis, development, and maintenance, of advanced software that sit behind ADAS and other technologies.
Appendix
Appendix A: Key technologies and their applications in modern autobody workshop
1 A further 20,000 construction-focused places were allotted in the Federal Budget 2024-25, for a total of 500,000 funded places from 2023 to 2026; Department of Employment and Workplace Relations, “Fee-Free TAFE - Department of Employment and Workplace Relations, Australian Government,” 2023.
2 Federal Financial Relations, “Fee-free TAFE skills agreement,” 2024.
4 Department of Employment and Workplace Relations, “Fee-free TAFE enrolment data,” 2024.
5 While exact comparability is not a given and commencements for the fee-free qualifications were higher previously, their rebound above the average (5,610) is notable.
6 Mackenzie Research Institute, “An Initial Look at Fee-Free TAFE,” 2024.