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."
Harris Williams is a leading advisor to the transportation and logistics M&A market. Our Transportation & Logistics Group serves companies in a broad range of attractive niches, including third-party logistics (3PL), truck, rail, marine and air transportation, transportation equipment, and the automotive and heavy duty vehicle market.
Recently Closed T&L Transactions
Deep Experience Across T&L Sectors
The information and views contained in this report were prepared by Harris Williams LLC (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any securities or financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The securities and financial instruments discussed in this report may not be suitable for all investors and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.
Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.