Table of Contents
Executive Summary
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- The market
- Revenues suffer from slow growth
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- Figure 1: Car parts aftermarket, by value, 2010-20
- Tyres dominate the replacement parts market
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- Figure 2: Segmentation of the car parts aftermarket, by value, at current prices, 2010-15
- UK car market is ageing
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- Figure 3: Age structure of the car parc in years, 2012 and 2014
- Companies, brands and innovation
- Fragmented supply base is evident in the tyre sector
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- Figure 4: UK – Tyres: Company market share, by volume, 2014
- Advertising expenditure suffers collapse
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- Figure 5: Recorded above-the-line, online display and direct mail total advertising expenditure on aftermarket products, 2011-14
- Innovation in the sector
- The consumer
- Second-hand cars are preferred
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- Figure 6: Vehicle ownership, August 2015
- A significant percentage of cars in ownership are over six years old
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- Figure 7: Age of car driven, August 2015
- Tyres are the part that car owners are most likely to have had to replace
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- Figure 8: Purchase of replacement parts (any purchase), August 2015
- Specialist retailers are preferred for the purchase of replacement parts
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- Figure 9: Channels used for the purchase of replacement parts, August 2015
- Many drivers looking for support from others when buying parts
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- Figure 10: Statements associated with the purchase of replacement parts, August 2015
- What we think
Issues and Insights
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- How to boost revenues
- The facts
- The implications
- Overcoming the threat from low-priced competition
- The facts
- The implications
- Communicating with the motorist
- The facts
- The implications
The Market – What You Need to Know
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- Sluggish growth in revenues
- Tyres dominate the market
- Budget brands – An issue for the tyre sector
- Technology impacts on other parts market
- UK car parc showing signs of ageing
- Distance travelled falling back
- Car ownership rates appear static
- Replacement of parts varies
Market Size and Forecast
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- Figure 11: UK car parts aftermarket*, by value, at current and constant prices, 2010-20
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- Figure 12: Parts aftermarket, by value, 2010-20
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- Figure 13: Segmentation of the car parts aftermarket, by value, at current prices, 2010-15
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Segment Performance
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- Tyres – A mature market hit by a shift to budget brands
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- Figure 14: Tyre sales, by value (at current prices) and volume, 2010-15
- Budget tyres slowly growing share of sales
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- Figure 15: Tyre segmentation for replacement car tyres, by volume percentage, 2010-15
- Winter tyres suffer as all-season tyres see growth
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- Figure 16: Winter/all-season tyres, 2010-15
- The issue of part-worns
- Other replacement parts
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- Figure 17: Segmentation of the other replacement parts market, by value, at current prices, 2010-15
- Winners and losers
- Winners
- Losers
- Technology brings mixed benefits
Market Drivers
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- New sales increasing in both private and business and fleet sectors
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- Figure 18: UK new registrations of motor vehicles, 2010-15
- Developments in the UK car parc bring mixed messages
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- Figure 19: Age structure of the car parc in years, 2012-14
- Cost of car ownership on the rise
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- Figure 20: Consumer expenditure on car purchasing, servicing and repair and motoring expenses, seasonally adjusted at current prices, 2010-14
- Diesels account for over half of new cars sold
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- Figure 21: New car registrations, by fuel type, 2010-15
- Distance travelled is in steady decline
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- Figure 22: Trips, distance travelled and time taken, 2004-14
- Stagnation in car ownership and multi-car households
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- Figure 23: Percentage of households with car availability in England, 1995-2014
- Tyres are the part most likely to have been replaced
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- Figure 24: Purchase of replacement parts, August 2015
- Parts failures as part of MOT are in decline
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- Figure 25: Road vehicle testing scheme (MOT), selected reasons for failure, car tests, 2009/10-2013/14
- Strong new car sales signal potential difficulties for some parts of the market
- Impact of maintenance delays
- Other factors influencing the market
Key Players – What You Need to Know
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- Tyre market sees evidence of new entrants
- Parts aftermarket supports a large number of suppliers
- Channels to market are highly fragmented
- Innovation targets all areas
- Advertising expenditure plummets
Market Share
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- Tyres
- Growing demand for budget tyres boosts the profile of smaller players
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- Figure 26: UK – Tyres: Company market share, by volume, 2014
- Other replacement parts
Companies and Services
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- A diverse market
- Sluggish turnover for many in the tyre market
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- Figure 27: Revenues for the leading auto parts suppliers, factors and retailers and tyre manufacturers, 2010/11-2014/15
- Operating profits record significant falls for some in the parts market
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- Figure 28: Operating profits for the leading auto parts suppliers, factors and retailers and tyre manufacturers, 2010/11-2014/15
Channels to Market
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- Replacement parts are offered via a number of channels
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- Figure 29: Aftermarket outlets for sales of replacement parts *, 2010-15
- Independent garages suffering from a steady decline
- Forecourts suffer a major contraction
- Franchised dealer network sees stability
- Fast-fit network is stable
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- Figure 30: Top 10 tyre and exhaust fitting centres, by number of outlets, 2012-15
- Halfords dominates retail market
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- Figure 31: Leading car accessory chains, by number of outlets, 2012-15
- Motor factor market in decline
- The internet
Advertising and Marketing Activity
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- Advertising expenditure continues to fall…
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- Figure 32: Recorded above-the-line, online display and direct mail total advertising expenditure on aftermarket products, 2011-15
- …with consumers generally unresponsive to adverts and brands
- Tyres remain the biggest area of spending
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- Figure 33: Recorded above-the-line, online display and direct mail total advertising expenditure on aftermarket products, by category, 2011-14
- Brakes account for 11% of expenditure
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- Figure 34: Recorded above-the-line, online display and direct mail total advertising expenditure on car parts as a percentage of the total expenditure (excludes tyres), 2014
- Press advertising dominates
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- Figure 35: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by media type, 2011-14
- Different channels are preferred by tyre and parts manufacturers
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- Figure 36: Recorded above-the-line, online display and direct mail total advertising expenditure on passenger tyres, by media type, 2011-14
- Figure 37: Recorded above-the-line, online display and direct mail total advertising expenditure on components and parts, by media type, 2011-14
- Passenger tyres: Continental ups its advertising in 2014
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- Figure 38: Recorded above-the-line, online display and direct mail total advertising expenditure on passenger tyres, 2011-14
- Components and parts: fragmented market
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- Figure 39: Recorded above-the-line, online display and direct mail total advertising expenditure on motor components and parts, 2011-14
- A note on adspend
Launch Activity and Innovation
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- Wireless clutch reduces emissions and stalling
- New user-friendly website for Bosch Auto Parts
- Continental takes its dandelion rubber tyres to the road
- Car manufacturers invest in mapping technology
- Combatting cyber-attacks on ‘connected’ cars
- Hankook teams up with shoe sole manufacturer
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- Figure 40: The collaboration between Hankook and Vibram, 2015
- Lighting to illuminate hazards
The Consumer – What You Need to Know
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- Cars purchased used are more important than cars purchased from new
- Car ownership spans a range of vehicles
- Tyres – The part most often replaced
- Specialist retailers popular for purchases
- Worries about fitting and an interest in branded parts dominate thinking
Car Ownership
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- Most car owners bought their vehicle used
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- Figure 41: Car ownership, August 2015
- Car ownership is the preserve of older adults
- London – A city of contrasts
- Income impacts on owning from new or buying used
Age of Car Driven
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- Car parc shows evidence of a focus towards newer cars
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- Figure 42: Age of car driven, August 2015
- Older adults prefer older cars
- Location, employment and socio-economic status also impact on age of vehicle ownership
- Strong car market boosts profile of new cars
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- Figure 43: Age of car driven, 2011-15
Purchase of Replacement Parts
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- Tyres are the most likely part to have been replaced
- Some car parts need replacing more than others
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- Figure 44: Purchase of replacement parts, August 2015
- Men are more likely to have purchased parts
- Older men are an important purchasing group
- Parts replacement is higher in London
- Tyres and oil filters are less popular for those in certain socio-economic groups
- Tyres and shock absorbers are common purchases for owners of used cars
- Older cars are typically more likely to need replacement parts
Channels used for the Purchase of Replacement Car Parts
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- Specialist motor retailers are popular for purchasing replacement parts
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- Figure 45: Channels used for the purchase of replacement parts, August 2015
- Internet popular with men, young adults and those on the highest incomes
- Women and older adults like to rely on others
- City and rural car owners shop differently
- Specialist retailers positioned towards more affluent adults
- Indirect purchases are important for owners of used vehicles…
- …as well as owners of older cars
Statements Associated with Replacing Car Parts
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- Worries about replacing parts prompt the strongest opinions
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- Figure 46: Statements associated with replacement parts, August 2015
- Men want security through the purchase of branded parts
- Young drivers are happy to look at alternative ways of purchasing
- Older adults know about reliability
- Less affluent look at ways of saving money
- Adverts find favour with young, urban adults
- Multiple parts purchasing is focused on specific groups
Appendix – Data and Sources
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- Data sources
- Exclusions
- Market sizing and segment performance
- Fan chart forecast
- Abbreviations
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