The automobile industry and automotive aftermarket industry has recuperated in past couple of years, and as new light vehicle registrations keep on growing, it is important for the aftermarket to be aware of emerging trends that will influence repair opportunities for years to come.
Since there is more competition in the aftermarket industry today than ever before, it doesn’t mean that young entrepreneurs should ignore their dreams of starting a business. One can always learn from Steve Voudouris, president and CEO of Turn 5. Here are some quick insights into the trends driving the automotive aftermarket industry.
The Average Age of Vehicles Continues to rising (At Least for Now): The rising age of the vehicle population has been an encouraging aftermarket trend for a long time, and the trend has accelerated significantly over the past many years.
However, the after marketer must be alert about the possible impact of the type of repairs it will see over the upcoming years. In general, 6 to 11 year old vehicles stand for more do it for me type repairs. Older vehicles may drive more do it yourself and routine maintenance, but also require larger power train and suspension repairs.
OEM Globalization Is Quickly Becoming The New Norm: Growing global vehicle registrations continue to pressure OEMs (Original Equipment Manufactured) to speed up the need for utilizing modular architecture and global platforms. Looking at total global vehicles in operation, the number broke 1 billion units in 2010 and the number is expected to stand at 1.3 to 1.5 billion vehicles by 2020.
The increasing use of modular architecture, more vehicles per platform, and fewer platforms will lead to the use of related components and the ability to market the same aftermarket product in different regions around the world – a major opportunity for the global aftermarket supplier.
Original Equipment Manufactured Technology Advances Continue To Provide the Automotive Aftermarket Industry both Opportunity and Challenges: These advances are coming in all the different ways; like (1) Gas and hybrid cars continue to dominate market share and (2) OEMs continue to increase the interval between recommended oil changes.