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

Movers & Shakers: Round-up of all the latest changes

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

Read More

GSF announces new-look leadership team

GSF will add 20 new branches to its 180-strong network over the next 12 months; up to 20 further locations will follow from 2025

Read More

Winners crowned at CAT Awards 2024

The annual event, held at the Lowry Hotel, welcomed more than 200 people from across the aftermarket

Read More

Fraudsters guilty of selling knock-off aftermarket parts in UK

Group used Amazon as platform for its products

Read More

APH Automotive appointed Suplex’s exclusive GB distributor

Director Andrew Hopkin said the move “is a feather in the cap for APH”

Read More

Go to comments

Your email address will not be published.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