Canberra, Aug 5 (IANS): Australia will spend $6.5 million to help the Australian automotive suppliers "diversify and thrive", a minister said.

The Australian, Victorian and South Australian governments' Automotive New Markets Programme (ANMP), currently in its second round, is designed to help companies capture new business opportunities in domestic and overseas markets.

This programme will help automotive component producers win work in the global supply chains of automotive manufacturers and develop new markets beyond the automotive sector, Xinhua reported.

Kim Carr, minister for Innovation, Industry, Science and Research, said applications opened Monday for firms to apply under round 3 of the ANMP.

Carr encouraged firms to apply for grants under the new round.

"The automotive supply chain is a vital part of Australia's multi-billion dollar car manufacturing sector," said Carr.

"It is essential that we maintain a strong automotive supply chain in Australia by providing opportunities to expand their product and market base.

"The grants of up to $0.89 million each will enable innovative firms to develop new products, introduce new technologies and grow markets in Australia and overseas for automotive and non-automotive sectors," he added.