Significant Shifts Taking Place Within Aftermarket
DesRosiers Automotive Consultants released its latest update on the Canadian automotive aftermarket, which interested dealers will note shows significant channel share shifts.
The aftermarket has experienced remarkable stability in recent years, despite the pandemic, more work-from-home, the semiconductor issue, vehicle shortages, higher used vehicle prices, and government mandates for ZEV sales. Based on DAC, the overall aftermarket has remained “remarkably stable — at least at a macro-level.”
The overall light vehicle aftermarket enjoyed growth, increasing from $22.5 billion in 2021 to $24.1 billion in 2023. Of this, retail aftermarket parts experienced an increase from $12.9 billion to $13.7 billion from 2021 to 2023. And labour climbed from $9.6 billion to $10.4 billion from 2021 to 2023. However, beneath the overall growth DAC said there are noteworthy channel shifts taking place within the automotive aftermarket.
“Changing consumer maintenance patterns and the changing structure of the light vehicle fleet are leading to significant changes within the aftermarket,” said Andrew King, Managing Partner at DAC, in a statement.
He added that understanding these shifts is “critical not only to understand current market share dynamics, but also for forecasting how different players within the aftermarket (new vehicle dealers, independent repair facilities, retail chains, etc.) will perform over the coming five years.”
