Automotive Aftermarket industry Trends
Port Washington, NY, February 23, 2016 – The automotive aftermarket business expanded to $14.6 billion in 2015, with buck product sales increasing by 3.9 per cent and units/quarts by 1.7 percent*, relating to worldwide information organization The NPD Group. While dollar sales were accelerating since 2013, unit/quart product sales being down, and 2015 noted the initial 12 months which both ended ina positive manner New and car sales, a rise in kilometers driven, and atypical climate were facets that influenced the aftermarket’s strong performance throughout the year.
Brand new automobile product sales struck a record in 2015, with 17.5 million offered, however for the automotive aftermarket the story is based on car or truck product sales, which were more than two fold that of brand-new vehicles; almost 40 million utilized cars had been offered in 2015**. The aging car trend played into a lot of the development seen throughout the top-grossing aftermarket categories. For the 29 automotive aftermarket groups tracked by NPD, 75 per cent regarding the amount arises from the utmost effective 10 groups.
“Many new automobiles go back to the dealership for service, that is certainly not advantageous when it comes to aftermarket business. Used or aging vehicles, but create maintenance behavior and a need for products inside area. We believe there’s the opportunity when it comes to aftermarket industry almost immediately after buy to speak with those consumers about what particular maintenance should be done on their recently purchased car or truck, ” said Nathan Shipley, director and automotive aftermarket analyst, The NPD Group. “Consumers with such cars are moving to much more premium products maintain their automobiles running longer. The Bigger cost points and demand for products maintain cars running effectively and also looking great is assisting to drive product sales when it comes to business.”
Automobile acquisitions aside, the truth that consumers are operating much more in addition has provided the necessity for regular, routine solution and upkeep. At exactly the same time ındividuals are putting even more kilometers on the vehicles, also, they are spending less for fuel. Regardless of a 3.3 percent rise in gallon demand, customers invested nearly $112 billion less during the pump in 2015***.
With regards to record-breaking weather, cold, very warm, and very damp months all caused numerous groups to develop at various things throughout the year. In 2015, 23 states had among their 10 coldest February conditions on record, and storms brought snow toward eastern an element of the U.S. These wintertime storms drove product sales up very nearly 14 percent during the few days of February 7, 2015. Development was seen in groups including batteries, battery pack accessories, washer liquids, and antifreeze. An unseasonably hot March introduced consumers outside to kick off the springtime vehicle treatment maintenance period, and categories including engine oil, look add-ons and chemicals, and atmosphere fresheners saw a boost. December 2015 ended up being the warmest and wettest December on record, and all 29 aftermarket categories saw development after a weak December 2014.
NPD forecasts that automotive aftermarket retail product sales will attain $15.1 billion in 2016, growing the industry by 2.7 per cent for the year. Tying in thereupon, NPD estimates that kilometers driven will come back to a more small growth price of approximately 1.9 percent.
“Historically, the heaviest weighted driver in NPD’s aftermarket forecast was miles driven, however in 2016 I don’t expect that miles driven will continue to grow rather since robust because it is going back eight quarters. While I anticipate it to remain positive, the development will level off, ” said Shipley. “With that, retail price becomes a more important aspect within year’s forecast. Prices drove lots of everything we saw when it comes to improvement in 2015, and will be an influential driver in 2016. Macroeconomic trends including unemployment and household income will play into just how much individuals are ready to pay money for their vehicles and associated products.”
*Source: The NPD Group, Inc. / Retail Tracking Service, 52 months ending January 02, 2016
**Source: Nationwide Vehicle Dealers Association
*** Origin: U.S. Energy Information Administration