Ottawa, Ontario -- December 31, 2014 -- The Automotive Industries Association (AIA) of Canada has published its 2014 Outlook Study, providing context for the overall state of the automotive aftermarket industry.
According to the study, 1.74 million light vehicles were sold across the country in 2013, setting an all-time record. As these vehicles age over the next 10 years, the success felt by dealerships—holding a 36.6 percent share of the service and repair market for maintenance of these new vehicles—is set to trickle down to the aftermarket.
AIA notes that while a number of Canadians took home new vehicles in 2013, consumers are keeping their vehicles longer, with the average age of a light vehicle coming in at 9.3 years. As they age, 2014 model year vehicles will necessitate maintenance and repairs not covered by warranty, bringing prospective business to the aftermarket.
In 2013, aftermarket parts and labour sales totaled $19.1 billion—a number projected to rise to $21 billion by 2017. Factors behind the expected increase include the growing life expectancy of new vehicles, the expanding Canadian vehicle fleet, and the aging of the record volumes of new vehicles sold in recent years. The service segment of the industry is said to see the majority of this growth as the complexity of new vehicles lead car owners to seek professional maintenance services.
“This is an exciting time for the Canadian aftermarket industry as we sit on the cusp of significant growth,” says AIA President and CEO Marc Brazeaua. “AIA is pleased to provide this thorough report to its members to help them effectively plan for the upcoming changes to the market.”
The 2014 Outlook Study is free of charge and available to all AIA members, and can be accessed by logging onto AIA’s website using an email address and password and visiting the Publications page.
The study is available to purchase by non-members on AIA’s website. Those interested in becoming a member of the association can contact firstname.lastname@example.org.
For more information on AIA please visit AIACanada.com.