According to the IHS, the vehicles now that are at least 25 years old are about 14 million which is more than eight million as compared to 2002.
Fremont, CA: In 2020, the global automotive aftermarket industry is expected to reach 722.8 billion USD. Consumers are aware about the importance of preventive maintenance and scheduled servicing helps them keep the vehicles longer. For the business operating in the automotive aftermarket industry, the rising demand for aftermarket parts and services is spurring new growth and revenue opportunities. According to the new HIS Automotive survey, a typical car on the road in the U.S is 11.5 years old. Even though the cars on the highway are getting old, the consumers are buying new vehicles. U.S. car sales hit a record high in 2015 and auto makers sold 17.5 million cars and light trucks which is 5.7 percent more than the previous year.
Even though Americans are buying new vehicles, the aftermarket is stagnant. According to the IHS, the vehicles that are at least 25 years old are about 14 million which is more than 8 million as compared to 2002. Meanwhile, the vehicles that are 16 to 24 years old are approximately 44 million that is more than 26 million in 2002. In the last 10 years, the average age of the U.S. vehicle has increased by 17 percent. Similarly, in the last ten years, the ownership for new vehicles and used vehicles has increased by 60 percent. 75 percent of the aftermarket auto repair is done by independent auto repair shops while the rest of the 25 percent is done by dealerships. Thanks to the internet, the automotive aftermarket industry is going online. Both the parts and the services are being sold online.
Consumers have a lot of reasons for doing business with certain service providers. For instance, consumers choose an outlet for oil change based on coupons and offers. While choosing a tire shop, warranties and knowledge of service history are the deciding factors. With so many lucrative opportunities to service today’s vehicles, aftermarket auto repair shops can get in front of the consumers by acquiring a third-party marketing list of customers based on demographics, vehicle age, and more. Further, auto repair shops can create detailed selection criteria such as drive train, fuel type, engine size, engine block, and engine cylinders. Aftermarket auto repair shops can acquire a list of vehicle owners with validated emails and phone numbers, gender, age, estimated income, language spoken, credit card, purchase behavior, lifestyle interests, and more which may be indicative to their target audience.
Internet is the first place where consumers search for parts, distributors, and auto services. Hence, it is important for aftermarket parts providers to be found online with robust digital presence. The website must provide an excellent digital experience to the customers and prospects with the majority of the digital content driving traffic to the website. Email content, videos, and social media posts drive a lot of traffic. Website landing pages are one of the top ways to prospects gain information or show interest in aftermarket products and services. Thus, the aftermarket service providers must optimize the website with fresh content and continuously share it to third-party sites. Therefore, an online presence is a must for aftermarket parts and service providers.