Right to Repair Legislation: 3 Years On
2 mins reading time
The Motor Vehicle Service and Repair Information Sharing Scheme Act 2021 (or often referred to in broader terms as the “Right to Repair” legislation) (Scheme) played a pivotal role in reshaping how certain diagnostic, repair and servicing information for motor vehicles can be accessed by repairers and Registered Training Organisations (RTO) and marked a significant step forward in ensuring fair access to essential vehicle maintenance information beyond traditional OEM channels.
Since its inception in 2021, availability of such information to independent workshops and repairers beyond traditional OEM-authorised dealers levelled the playing field and enabled consumers broader choice of access to their preferred repairer or dealer.
3 years later…
Over time, independent workshops and repairers have largely benefited from the Scheme with consumers and fleets showing strong preference to obtain servicing and repairs through independent workshops and servicing channels, as opposed to approved OEM-appointed channels.
Research indicates that such independent workshops now account for an overall 60% of all service and repair activities within Australia, with future projections of further 20% increases in such activities each year by 2030. Such shift in consumer preference to use independent mechanics and servicing centres are largely associated with higher consumer trust and competitive pricing offered by such workshops.
New vehicle brands
Many new automotive players in the Australian market (such as new Chinese EV brands) are complying with the Scheme requirements and offering vehicle servicing information to independent repairers with an effect of promoting competition in an increasingly cluttered automotive market, of larger consumer choices in vehicles.
For example, BYD, Chery, Great Wall Motors and MG Motor are already offering such repair information. This may for example include certain manuals, warranty details, recall information, vehicle security protocols and specialised servicing tools information, among other essential resources.
Accessing information
As part of the membership subscription process, the member must declare with AASRA that they either currently carry on or actively seeks to carry on a business involving diagnosing faults with servicing, repairing, modifying or dismantling scheme vehicles, or are an RTO that currently provides (or seeks to provide) an RTO course which provides training on the above matters.
Other membership requirements must be complied with, including providing certain personal information relating to AASRA’s assessment to determine whether the member would be a “fit and proper person”, such as a police background check. Once the member has subscribed, they receive a key code, enabling them access to such information.
The information available is broad-ranging and includes servicing information dating back all the way to the early 2000s.
AASRA terms and OEM terms
It is important to note that while membership with AASRA grants access to a wide array of resources, members may still be required to establish accounts and accept separate terms and conditions directly with the relevant OEM. This dual requirement ensures that members engage directly and abide by the terms of the manufacturers, beyond the intermediary role of AASRA.
Implications for dealers
For motor dealers, understanding some of the implications of the Scheme are crucial:
- Given the preference by consumers to use independent workshops and service repairers in having their vehicles serviced, dealers should consider gaining early competitive advantages, whether through premium servicing standards, pricing or benefits which cannot be offered by independent repairers.
- Such increase in consumer choice to use independent repairers over time has lead to increased competition among dealers to attract and retain the best talent in the market. Given the current labour shortages in the automotive industry, there has been some preference to engage and employ talent directly from overseas with visas being issued directly to candidates. This has raised some particular concerns from a visa and migration compliance perspective. An opportunity exists for dealers to be ahead of the game in terms of their visa and migration strategy and compliance to be the preferred employment option for skilled migrant technicians.
Conclusion
The availability of such Scheme information over the last three years has represented a strong shift in the industry, with customer preference to use independent workshops and service repairers as opposed to traditional OEM-authorised dealerships.
In an increasingly cluttered vehicle market, this has had competitive implications for dealers from both a pricing, and skills-shortage perspective. Dealers will need to therefore carefully consider the impact of the Scheme to their business and how they can best adapt to such market changes.
Macpherson Kelley advises motor dealer clients on all aspects of their legal, migration and commercial day-to-day requirements. If you have any questions regarding the above, please contact our motor dealers team.
The information contained in this article is general in nature and cannot be relied on as legal advice nor does it create an engagement. Please contact one of our lawyers listed above for advice about your specific situation.
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Right to Repair Legislation: 3 Years On
The Motor Vehicle Service and Repair Information Sharing Scheme Act 2021 (or often referred to in broader terms as the “Right to Repair” legislation) (Scheme) played a pivotal role in reshaping how certain diagnostic, repair and servicing information for motor vehicles can be accessed by repairers and Registered Training Organisations (RTO) and marked a significant step forward in ensuring fair access to essential vehicle maintenance information beyond traditional OEM channels.
Since its inception in 2021, availability of such information to independent workshops and repairers beyond traditional OEM-authorised dealers levelled the playing field and enabled consumers broader choice of access to their preferred repairer or dealer.
3 years later…
Over time, independent workshops and repairers have largely benefited from the Scheme with consumers and fleets showing strong preference to obtain servicing and repairs through independent workshops and servicing channels, as opposed to approved OEM-appointed channels.
Research indicates that such independent workshops now account for an overall 60% of all service and repair activities within Australia, with future projections of further 20% increases in such activities each year by 2030. Such shift in consumer preference to use independent mechanics and servicing centres are largely associated with higher consumer trust and competitive pricing offered by such workshops.
New vehicle brands
Many new automotive players in the Australian market (such as new Chinese EV brands) are complying with the Scheme requirements and offering vehicle servicing information to independent repairers with an effect of promoting competition in an increasingly cluttered automotive market, of larger consumer choices in vehicles.
For example, BYD, Chery, Great Wall Motors and MG Motor are already offering such repair information. This may for example include certain manuals, warranty details, recall information, vehicle security protocols and specialised servicing tools information, among other essential resources.
Accessing information
As part of the membership subscription process, the member must declare with AASRA that they either currently carry on or actively seeks to carry on a business involving diagnosing faults with servicing, repairing, modifying or dismantling scheme vehicles, or are an RTO that currently provides (or seeks to provide) an RTO course which provides training on the above matters.
Other membership requirements must be complied with, including providing certain personal information relating to AASRA’s assessment to determine whether the member would be a “fit and proper person”, such as a police background check. Once the member has subscribed, they receive a key code, enabling them access to such information.
The information available is broad-ranging and includes servicing information dating back all the way to the early 2000s.
AASRA terms and OEM terms
It is important to note that while membership with AASRA grants access to a wide array of resources, members may still be required to establish accounts and accept separate terms and conditions directly with the relevant OEM. This dual requirement ensures that members engage directly and abide by the terms of the manufacturers, beyond the intermediary role of AASRA.
Implications for dealers
For motor dealers, understanding some of the implications of the Scheme are crucial:
- Given the preference by consumers to use independent workshops and service repairers in having their vehicles serviced, dealers should consider gaining early competitive advantages, whether through premium servicing standards, pricing or benefits which cannot be offered by independent repairers.
- Such increase in consumer choice to use independent repairers over time has lead to increased competition among dealers to attract and retain the best talent in the market. Given the current labour shortages in the automotive industry, there has been some preference to engage and employ talent directly from overseas with visas being issued directly to candidates. This has raised some particular concerns from a visa and migration compliance perspective. An opportunity exists for dealers to be ahead of the game in terms of their visa and migration strategy and compliance to be the preferred employment option for skilled migrant technicians.
Conclusion
The availability of such Scheme information over the last three years has represented a strong shift in the industry, with customer preference to use independent workshops and service repairers as opposed to traditional OEM-authorised dealerships.
In an increasingly cluttered vehicle market, this has had competitive implications for dealers from both a pricing, and skills-shortage perspective. Dealers will need to therefore carefully consider the impact of the Scheme to their business and how they can best adapt to such market changes.
Macpherson Kelley advises motor dealer clients on all aspects of their legal, migration and commercial day-to-day requirements. If you have any questions regarding the above, please contact our motor dealers team.