Aftermarket Parts: Consumers choosing lower costs over brand names

Toronto, Ontario -- Parts sourcing trends shifted sharply toward lower-cost options in 2025, with a growing share of consumers favouring independent aftermarket parts over original equipment brands, according to a global study that highlighted mounting pressure on collision repair margins and service capability.

The Automotive Aftermarket Pulse 2025 report, released in December, was based on surveys of 600 auto repair centres and 6,000 consumers across 13 major markets, including Canada and the United States. The study examined how cost pressure, digital sourcing, electrification and convenience services reshaped the automotive aftermarket as new vehicle sales remained stalled and supply chains stayed under strain.

The report found 57 percent of consumers globally preferred independent aftermarket parts over original equipment brands, an increase of 14 percentage points from 2024. That shift applied across all regions surveyed, including Canada, and was most pronounced among cost-sensitive vehicle owners, particularly those with older vehicles.

Within the independent aftermarket, private-label parts gained ground. These parts, manufactured by third-party suppliers but sold under the brand name of a retailer, distributor or repair network, accounted for between 25 and 50 percent of consumer preference in 9 of the 13 countries surveyed. The findings pointed to a move not only away from original equipment parts, but toward the lowest-priced tiers within the aftermarket itself.

The report also identified differences between consumer preference and repairer behaviour that were relevant to Canada. Rural consumers, including those in Canadian markets, were more likely to accept independent aftermarket and non-branded parts, while urban auto repair centres reported the highest use of non-branded components, reflecting higher labour costs and competitive pressure in city markets.

Advanced driver assistance systems emerged as a major constraint for collision repairers. The study found 49 percent of auto repair centres globally reported offering full ADAS repair services, yet 47 percent said they turned away ADAS-related repairs in 2025 due to gaps in equipment or expertise. Equipment cost was cited as the primary barrier by 58 percent of respondents.

Canada was identified among the markets showing hesitation around ADAS investment over the next two to three years, alongside Brazil and Turkey, as repair centres weighed high tooling costs against uncertain return on investment. The findings suggested ADAS-heavy collision repairs increasingly flowed toward OEM-controlled channels or specialist providers as post-repair calibration and verification became more common.

“The automotive aftermarket in Western markets faced rising price pressure, with 57 percent of consumers choosing IAM parts, up 14 points from 2024,” Maximilian Wegner, a principal at Roland Berger, said in the report.

Convenience services also emerged as a competitive differentiator with relevance for collision repair, particularly for fleets and time-sensitive customers. The report found independent repair centres increasingly offered vehicle pick-up and drop-off services to attract new business. More advanced offerings included so-called ghost services, where vehicles were collected, repaired and returned without customer involvement.

“This year, we found that independent workshops were increasingly offering convenience services like pick-up and drop-off to attract new customer segments such as fleets,” Neury Freitas, a partner at Roland Berger, said in the report.

Adoption varied by region. Europe, the Middle East and Africa led on convenience services, while China showed strong openness to mobile and premium service models. More than 40 percent of auto repair centres surveyed globally said convenience services were not yet a priority, indicating room for further uptake in Canada and other mature markets.

Digital purchasing patterns diverged between consumers and professionals. While consumer enthusiasm for buying parts online cooled, more than 60 percent of auto repair centres in mature markets, including Canada, sourced significant volumes through online channels. The report found competition in digital sourcing shifted beyond price toward delivery reliability, technical support and flexible payment terms, all of which affected repair cycle time.

Sustainability remained a stated concern but failed to overcome cost sensitivity. The study found 72 percent of consumers globally were unwilling to pay a premium for remanufactured or recycled parts, limiting adoption despite interest from both consumers and repairers.

The report was produced by global consulting firm Roland Berger, which advised automotive manufacturers, suppliers and service providers on strategy and operations. The Automotive Aftermarket Pulse was published as an annual study tracking structural changes in parts sourcing, service capability and customer expectations across the global automotive aftermarket.