Auto Service World: Domestic Nameplates Losing Ground in Aftermarket

The once-dominant domestic nameplates in the light vehicle aftermarket have seen a steady decline in recent years.

In Lang Marketing’s report, 2024 Domestic Nameplate Aftermarket Below 2005, it found that while once commanding more than two-thirds of the vehicles in operation (VIO) between 2000 and 2010, domestic nameplates now represent a minority of light vehicles on U.S. roads.

By 2024, domestic nameplates’ VIO will have dropped by more than 10 million over the past decade, despite the nation’s overall VIO increasing by nearly 40 million. This decline has had a significant impact on their aftermarket product sales, which are projected to be 2 per cent lower in 2024 than in 2005.

Domestic nameplates peaked in product volume in 2015 but have since struggled to match the growth of the total light vehicle aftermarket, which has risen over 20 per cent in the same period. This stagnation comes despite the historic disruptions caused by COVID-19 in 2020.

One key finding of the report is that domestic nameplates’ aftermarket product sales per vehicle in 2024 will be about 12 per cent lower than those of foreign nameplates. This disparity will contribute to domestic nameplates capturing less than 45 per cent of the 2024 light vehicle product market, down from 67 per cent in 2005.

The decline has been particularly harsh on domestic cars, which have shouldered the entire reduction in aftermarket product volume. Over the past 19 years, domestic car product sales have plummeted by 70 per cent, while domestic light trucks have grown their product volume by more than 25 per cent. Despite this growth, light trucks have not offset the steep losses in the car segment, leaving domestic nameplates unable to contribute to the over 50 per cent increase in overall light vehicle product sales since 2005.

Looking ahead, Lang Marketing predicts the market forces driving this trend will persist. Domestic nameplates will continue losing their share of the repair-age sweet spot, vehicles with the highest replacement rates for aftermarket products.

“These and other factors will continue to widen the gap between domestic and foreign nameplates in the average annual use of repair and maintenance products,” the report said.