AFTERMARKET TO CONTRACT 11% YoY IN 2020 SAYS REPORT

According to a report by business analyst Frost & Sullivan, aftermarket revenue expanded by 4.1% in 2019. This was largely driven by a 3.2% growth in vehicles in operation, with the contraction in global gross domestic product (GDP) growth stifling consumer expenditure on new vehicle purchases.

READ: TRADE BODIES UNITE TO WARN AGAINST ‘NO DEAL’ BREXIT

However, for 2020, the market was initially forecasted to grow at a healthy 4%; but following muted consumer demand and supply-chain disruptions caused by the pandemic, it is now expected to contract between 4.9% and 11.6% according to the report. New aftermarket demand ‘pockets’ will rise from the need for customer safety and wellbeing, creating a $75-billion market opportunity for contactless delivery of parts and services by 2025.

“The global automotive aftermarket is at a crossroads and has severely impacted stakeholders at all levels. Supply chain reorientation, financial aid to channel partners and the digitization of traditional business models and services can help mitigate some of the adverse effects of the pandemic,” said Anuj Monga, Research Manager, Automotive & Transportation at Frost & Sullivan

The report, titled: Digital Business Models Mitigating COVID-19 Implications on Global Aftermarket Performance in 2020, identifies eCommerce, digital retailing and services relating to hygiene and car care

 

Published by GregWhitaker

Editor of CAT Magazine and an experienced motoring journalist

MIDWEST REBRANDS UNDER ARNOLD CLARK BANNER

Factor chain, including Monmore Auto Parts, under group corporate identity

Read More

CMA: UNIVERSAL COMPONENTS MUST SELL CV FACTOR BUSINESS

Competition and Markets Authority rules that Universal Components must sell 3G Truck and Trailer Parts

Read More

IGA PRODUCES NEW CORONAVIRUS GARAGE GUIDE

Guidance for garages produced in electronic booklet

Read More

RISING MATERIAL PRICES ‘HERE FOR THE LONG TERM’ WARNS PRODUCER

Increase in prices of finished parts ‘unavoidable’ as platinum group metal prices soar

Read More

ROW OVER 5w30 OIL RECALL

Mannol oil relabelled following conflicting standards claims

Read More

Go to comments

Your email address will not be published. Required fields are marked *