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 Greg Whitaker

Editor of CAT Magazine and an experienced motoring journalist @GregWhitaker5

GSF Car Parts opens two new branches in Southern England

New locations aim to improve the firm’s delivery times in West Sussex and North London

Read More

WAI signs agreement with Motus to expand into South African market

The move will “further expand the number of solutions we bring to the global aftermarket”

Read More

Hand car washes to be targeted in new government immigration probe

Around 1,000 staff, previously assigned to the now-abandoned Rwanda deportation scheme, will lead the effort

Read More

“Import more mechanics” or aftermarket garages will grind to a halt, government told

The sector is in an employment pit with vacancy rates at 5.1 per 100 employees, its highest point in 21 years

Read More

Movers and Shakers: Aussie joins A1 ADAS Solutions Group

All the latest changes from across the sector, including new roles, promotions, and retirements

Read More

Go to comments

Your email address will not be published.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