Automotive Aftermarket Sector Update
Key Trends In The Industry
Electric vehicles are in the news and on the roads. Does that mean the automotive aftermarket industry is about to be transformed? Not right away, according to Managing Director Joe Conner and Director Jeff Kidd. As with other technological shifts in the automotive industry, the trend toward electric propulsion will create a host of new opportunities for forward-looking aftermarket companies. Yet that shift will take time, and will be more pronounced in some parts of the industry than in the others. In this article, get their insights on the timing and breadth of the impacts of electrification, and how to stay Ahead of the Curve.
What We're Reading
"Sure, the internet and technology are distractions (and in some cases interruptions), but the automotive aftermarket exists because it has always been nimble and solution-driven. As long as there’s a need for a part to repair a vehicle – however the part is ordered – the distribution channel will be there to deliver that part."
"The tightly woven production chain illustrates the U.S. dependence on aluminum from Canada that many say is unlikely to change despite recent metals tariffs the Trump administration hopes will boost the American metals sector. Analysts and some car companies say the higher aluminum prices will likely be passed on to American car-buyers rather than absorbed entirely by companies."
"By 2025-26, vehicle subscription programs could account for nearly 10% of all new vehicle sales in the US and Europe. Throw in predictions of over 16 million vehicles being part of vehicle subscription services by 2025, and of 1 in every 5 cars in a subscription offering being new and it’s little surprise that everyone—car manufacturers, automotive dealership groups, car maintenance and repair companies, insurance firms, technology startups, AI companies, lending companies, concierge operators, and, most importantly, customers—are salivating at what appears to be a rich and ever-expanding pie."
"BCA Marketplace has boosted operating profits by 17.9% from £74.3 million to £87.6m in its annual results. Group revenue was £2,431.5m (2017: £2,029.7m) and the business saw increased volumes across all divisions, with its UK Vehicle Remarketing division achieving over one million vehicles sold in the year."
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