Thinking of Buying a Motorcycle Repair Business in Australia? Here Are 3 Vital Questions to Ask

Australia’s motor vehicle body, paint and interior repair industry, which includes motorcycle and small vehicle repairers, generated $9.7 billion in revenue in 2025 across 14,764 enterprises, employing more than 44,000 people.

While industry revenue contracted slightly by 0.5% annually over the past five years, it is forecast to recover with 1.4% annual growth through 2030, reaching $10.4 billion. This rebound is driven by rising vehicle registrations, the growing average vehicle age, and the demand for specialised repairs like motorcycle servicing and restoration.

1. Is the Business Financially Sustainable and Well-Positioned for Growth?

Why It Matters:

Motorcycle repair businesses operate within a highly competitive and fragmented repair industry. Financial sustainability depends on balancing labour costs, repair throughput, and the ability to service both modern and classic models.

What to Check:

• Revenue and profitability – Industry profits total $387 million, with average margins of 4%, leaving little room for inefficiency.

• Industry outlook – Revenue is forecast to grow 1.4% annually through 2030, reflecting improved consumer spending and easing inflation.

• Demand base – Motorcycle registrations continue to rise as Australians shift toward affordable, fuel-efficient transport, supporting steady repair demand.

• Cost management – Rent, paint, parts, and energy costs remain elevated, particularly in urban workshops where rents are climbing faster than inflation.

• Service diversity – Offering custom restorations, insurance work, and performance tuning helps maintain revenue through seasonal fluctuations.

2. Does the Business Have a Strong Competitive Edge and Skilled Labour Force?

Why It Matters:

With low barriers to entry, competition in the repair industry is intense. Skilled technicians, insurer relationships, and workshop efficiency are key to maintaining profitability.

What to Check:

• Market structure – Over 90% of businesses are independent operators, while large networks like AMA Group dominate insurer-preferred repair work.

• Labour availability – Skilled shortages in spray painting and mechanical repair are widespread, especially in Queensland and Western Australia, driving up wage costs.

• Licensing – Operators must hold a motor vehicle repair business licence under state regulations such as the Motor Dealers and Repairers Act 2013 (NSW) and Motor Vehicle Repairers Act 2003 (WA).

• Customer base – Diversifying beyond crash repairs into fleet contracts and high-performance tuning improves income stability.

• Local reputation – Motorcycle owners rely heavily on word-of-mouth and trusted service providers rather than insurer networks.

3. Is the Business Equipped for Emerging Vehicle Technologies and Sustainability Standards?

Why It Matters:

Modern motorcycles increasingly integrate electronic safety systems, sensors, and diagnostic technologies. Businesses that adapt to these changes gain a competitive advantage and stay compliant with new repair standards.

What to Check:

• Technology investment – Advanced diagnostics and calibration tools are now essential for servicing electric and sensor-equipped bikes.

• Right-to-repair access – The Federal Government’s $400 million investment in Right-to-Repair initiatives (2024) ensures independent workshops can access manufacturer repair data.

• Environmental standards – Workshops must comply with OHS and EPA rules for waste disposal, paint use, and chemical handling. Many are shifting to biodegradable detergents and waterborne paints to meet these standards.

• Automation and AI – Increasing use of AI-assisted diagnostics and automated repair systems is improving repair speed and accuracy across the sector.

• EV readiness – The emerging electric motorcycle market requires specialised battery servicing and safety training, creating a niche for forward-thinking repairers.

Ready to Invest in a Thriving Motorcycle Repair Business?

As Australia’s vehicle fleet expands and motorcycles gain popularity for economical commuting, repair businesses are positioned for steady, technology-driven growth.

Success depends on technical expertise, efficient cost control, and readiness to adopt environmentally safe and data-driven repair methods.

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