The Australian car industry is undergoing a period of consolidation as it seeks to address the growing cost of ownership, but this will not be easy for the sector.

The Australian Automotive Industry Association (AAA) said the new regulatory structure for the industry was a welcome step, but said the transition to the new model would be gradual and could be “a long, hard slog”.

The AAA said the regulator would also need to consider new legislation in the area of liability and the impact on the supply chain.

It is unclear whether the new regulations would include a provision for warranties for the new car, which would allow consumers to take on a new vehicle for a discounted price if it failed in its initial warranty period.

“The new regulation, which will be implemented over the next 12 months, will enable the industry to work more efficiently and in a more transparent manner, and ensure the industry has a more cost-effective and sustainable model to support its growth,” the AAA said.

The new regulations will be introduced on November 4 and the Government has yet to announce the changes.

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