The Automotive Industries Association (AIA) of Canada published its 2014 Outlook Study, which cited new vehicle sales and average vehicle age as reasons for the aftermarket’s bright future.
“This is an exciting time for the Canadian aftermarket industry as we sit on the cusp of significant growth,” said Marc Brazeau, president and CEO, AIA Canada.
According to AIA, the new vehicle market set an all-time sales record in Canada in 2013 having sold 1.74 million light vehicles across the country. AIA noted that dealerships were the most popular choice for automotive maintenance of these new vehicles – holding a 36.6% share of the service and repair market. However, AIA reports that Canadians are keeping their vehicles longer such that the average age of a light vehicle in Canada is 9.3 years. According to the association, as vehicles age in the next decade and require an increasing amount of maintenance and repairs not covered by warranty, consumers are likely to bring business to the aftermarket industry.
AIA reported that aftermarket parts and labor is expected to grow to $21 billion by 2017. In addition to the increased Canadian vehicle fleet, increase life expectancy of vehicles and the aging of the record volumes of new vehicles sold in recent years, AIA noted that increasing complexity of vehicles will force car owners to seek professional maintenance services.
AIA’s 2014 Outlook Study is available to all AIA members free of charge. The study is also available for purchase to non-members on AIA’s website. Download the study here.
