Source: Adam Malik, Auto Service World
The entire automotive industry is seeing record retail sales and the aftermarket is no exception.
Data from DesRosiers Automotive Consultants show the first quarter of this year was very good to the bottom lines of the entire industry.
DesRosiers reported that automotive parts, accessories and tire stores saw retail sales climb 7.6 per cent in the first quarter of 2022 from the same time the year before. That would bring numbers well above pre-pandemic levels — more than 20 per cent higher than 2019 numbers.
For new car dealers, despite a reduction in inventory, they saw an increase of 6 per cent in the first quarter compared to Q1 2021. It was a similar story for used car dealers, though not at the same rate. This area saw an increase of just under 2 per cent for the first three months of this year compared to last.
“While new and used car dealers have struggled with product shortages as a result of semiconductor supply issues, net dollars per unit have soared resulting in record retail sales,” said Andrew King managing partner at DesRosiers.
“The aftermarket has shown remarkable resilience through the last couple of years and continues to act as a strong foundation of stability for all industry players,” he added.
The consultancy did note that it expects vehicle dealer growth to falter in the second quarter as vehicle supply shortages create greater consequences. However, the aftermarket’s outlook is more positive thanks to kilometres driven continuing to climb going forward.