Market Indicators Point to Strong Aftermarket Future
The rising age of the fleet and extended ownership length offer good signs for the Aftermarket industry while potential from hybrid growth may require more analysis.
Despite recession challenges, the aftermarket will remain strong in the long-term as the average vehicle age continues to climb and as consumers own their vehicles longer. Although vehicles scrapped in the past 15 months have outpaced vehicles entering the market, repairs performed on the current U.S. fleet are increasing. A main challenge of the aftermarket will be to maintain consumer loyalty as dealerships become more aggressive in trying to fill their bays with repairs beyond standard warranty work. With regards to hybrids, while a growing market in some regions, factors point to a more cautious approach for the aftermarket with respect to major opportunities in the hybrid sector.
