“This year the automotive industry recovered from a seemingly impossible collapse in the immediate aftermath of the pandemic. The industry has brought back nearly 80% of the jobs lost. Far better than most other sectors of the economy. Production and sales both recovered sharply, quickly making up lost ground.”
SEMA Industry Indicators Report.
The two capital auto parts markets are firstly the automotive components from the original equipment manufacturer (OEM) and secondly – the automotive aftermarket. And the auto aftermarket is big, layered, and resilient, capturing the attention of financial and strategic buyers.
Historically the auto parts industry has grown about 3.5% to 3.9% per year. But a milestone came in June 2020 with a record $50.509 billion in sales, with personal consumption of aftermarket tires also achieving a record of $35.504 billion. And parallel to that the e-commerce share of the industry is growing even larger than the forecasted rates, as more independent garages are turning to online providers for their parts supply*. The obvious growing power of digital influence on the automotive aftermarket industry is significant and all the additional data that it brings can fuel every business if handled the right way.
We are 3 months into 2021 and both markets continue to grip the wheel of growth tightly and show us many positive signs that the industry is already rebounding and that potential is virtually unlimited. What’s fuelling all that? Although consumer confidence dipped in spring 2020, now consumers are investing more time and money on vehicle upgrades and accessorising. As the University of Michigan reported in a recent study – people are more optimistic in 2021 and better off economically than in the prior year, since they found more ways to save and reduced their spending. Restrictions on dining, entertainment, and other social activities inspire people to find more secluded outdoor solutions. Recent data from Apple reveals that despite or perhaps because of the lockdown driver map requests are up, which indicates consumer vehicle use has noticeably risen. And as people are trying to use their vehicles not only for errands but also for longer trips, we’re seeing an upswing in retail spending.
Enthusiasts and our transportation needs have proven that car culture is bigger than COVID and Brexit. We’re recovering from the hit the economy took in spring 2020. The aftermarket is undoubtedly proving that it is as flexible as it is resilient and it’s continuing to exceed expectations while facing the ICE-to-EV* shift, progressively evolving consumer interest and meeting government regulations.
ecommotors is the only provider of integrated ecommerce services and software systems for brands, manufacturers, distributors and resellers of automotive parts, tools and accessories who want sustainable online sales growth. If you want to know more about how to grow your online aftermarket presence or for a no-obligation introductory discussion, please contact us.
And If you want to know the aftermarket formula for success, click here.