Thinking of Buying a Motor Vehicle Rust Proofing Business in Australia? Here Are 3 Vital Questions to Ask

Australia’s motor vehicle body, paint, and interior repair industry, which includes rust proofing, undercoating, and vehicle surface protection services, generated $9.7 billion in revenue in 2025 across 14,764 enterprises, employing about 44,000 people.

Profit margins averaged 4%, equating to $387 million in total profits. Although industry revenue contracted slightly by 0.5% annually from 2020 to 2025 due to reduced collision rates and higher costs, it is projected to grow 1.4% annually through 2030, reaching $10.4 billion as consumer spending recovers and more vehicles require ageing protection and refurbishment.

Within this market, rust proofing and underbody treatments fall under the “upholstery, interior, and specialised services” segment, which is gaining traction as consumers keep vehicles longer and demand durable, weather-resistant finishes.

1. Is the Business Financially Sustainable and Adapted to Market Cycles?

Why It Matters:

Rust proofing businesses are influenced by broader automotive repair cycles, household spending, and new vehicle sales. Profitability depends on controlling input costs and tapping into niche maintenance or restoration markets.

What to Check:

• Revenue base – The wider vehicle repair sector generates $9.7 billion, with the specialised services category — including rust proofing — contributing around 7.3% of total revenue.

• Profit margins – Average at 4%, with higher returns possible for businesses offering bundled detailing and protection packages.

• Input costs – Paint, coating, and chemical supplies remain expensive due to freight disruptions and global shortages in specialty products.

• Customer base – Rust proofing appeals to owners of older cars, fleet operators, and 4WD owners in coastal or rural areas, where corrosion is common.

• Economic cycles – As vehicle safety reduces collision repair demand, rust protection and preventive maintenance are steady alternative income sources.

2. Does the Business Have a Strong Market Position and Technical Differentiation?

Why It Matters:

The industry is highly fragmented, with thousands of small workshops competing locally. Success depends on expertise, brand trust, and the ability to service both retail and trade clients.

What to Check:

• Market structure – The largest operator, AMA Group, holds only 9.2% of market share, meaning smaller businesses still capture most niche work.

• Service quality – Workshops offering both traditional underbody coatings and modern polymer-based or electronic rust prevention systems can attract premium clients.

• Location advantage – Businesses near coastal regions and high-salt environments (particularly in Queensland and Western Australia) experience steady demand.

• Certification and compliance – Proper environmental handling of paint and chemical runoff is required under OHS and EPA standards, particularly for solvent-based products.

• Insurance and fleet contracts – Partnerships with insurers and government fleets can provide stable revenue beyond retail walk-ins.

3. Is the Business Positioned for Future Technology and Sustainability Trends?

Why It Matters:

Environmental regulation, vehicle technology, and sustainability are reshaping repair and protection services. Businesses adopting modern coatings and eco-safe practices are more likely to thrive.

What to Check:

• Eco-friendly products – Car washes and rustproofing services are moving toward biodegradable coatings and waterborne paints to meet environmental standards.

• Technology integration – Workshops using automated spray systems and AI-driven diagnostics achieve higher precision and efficiency.

• Right-to-repair access – The Federal Government’s $400 million Right-to-Repair initiative (2024) now ensures independent workshops can access manufacturer repair data, expanding opportunities for small operators.

• Market adaptation – With vehicles lasting longer and electric cars requiring corrosion protection for battery compartments, future-proofing services will be in growing demand.

• Diversification – Offering additional cosmetic detailing, ceramic coatings, and underbody soundproofing can increase per-customer value.

Ready to Invest in a Thriving Motor Vehicle Rust Proofing Business?

With an expanding car fleet, ageing vehicles, and consumer awareness of long-term protection, rust proofing remains a profitable niche within Australia’s vehicle service industry.

Success depends on using advanced coating technologies, maintaining environmental compliance, and targeting growth markets like fleet servicing and electric vehicle protection.

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