Table of Contents
Overview
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- What you need to know
- Products covered in this Report
Executive Summary
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- The market
- Revenues continue to increase
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- Figure 1: UK Car aftermarket, by value, 2012-22
- Tyres account for over half of the market
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- Figure 2: Segmentation of the car aftermarket, percentage value, 2012-17
- Budget brands account for over half of tyre sales
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- Figure 3: Tyre segmentation for replacement car tyres, by volume percentage, 2017 (est)
- Brakes and clutches are the most valuable other replacement parts
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- Figure 4: Segmentation of the other replacement parts market, by value, at current prices, 2017
- Sterling’s recent depreciation has impacted prices
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- Figure 5: Month-end sterling average values versus US Dollar and euro, Jan 2016 to Sept 2017
- Independent garages account for 41% of channels for replacement parts
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- Figure 6: Aftermarket outlets for sales of replacement parts*, 2017
- Companies and brands
- Tyre market supports a large number of suppliers
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- Figure 7: UK – Replacement tyres: company market share, by volume, 2017
- Advertising expenditure shows evidence of recovery
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- Figure 8: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by category, 2013-16
- The consumer
- Majority of adults own a car
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- Figure 9: Vehicle ownership, September 2017
- Wide differences in age of cars in ownership
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- Figure 10: Age of car, September 2017
- Most car owners undertake maintenance themselves
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- Figure 11: Responsibility for maintenance and servicing, September 2017
- Tyres are the part that is most likely to be replaced
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- Figure 12: Purchase of replacement parts, September 2017
- Regular maintenance and servicing the main reason for replacing parts
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- Figure 13: Reasons for replacement, September 2017
- Automotive retail stores are the most popular outlet for purchasing parts
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- Figure 14: Purchase channels, September 2017
- Half of car owners are concerned about post-Brexit price rises
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- Figure 15: Implications of Brexit, September 2017
- What we think
Issues and Insights
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- Tired with downtrading? Will the revival in demand for premium tyres be replicated elsewhere?
- The facts
- The implications
- Young drivers appear a reluctant market when it comes to purchasing
- The facts
- The implications
- Brexit worries seem to be causing a stir in the motor market
- The facts
- The implications
The Market – What You Need to Know
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- Market value boosted by rising prices
- Tyres benefit from resurgent interest in the premium sector
- Price rises help stimulate other replacement parts
- Independent garages dominate despite rising dealer and fast-fit competition
- UK car sector expands but also ages
- Brexit concerns bring short-term problems
Market Size and Forecast
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- Rising prices are evident across all areas of the market
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- Figure 16: UK Car aftermarket, by value, 2012-22
- Figure 17: UK Car aftermarket*, by value, at current and constant prices, 2012-22
- Tyres increase their share of the market
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- Figure 18: Segmentation of the car aftermarket, by value, at current prices, 2012-17
- Forecast methodology
Market Segmentation
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- Shift to premium and devaluation of Sterling help boost tyre value
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- Figure 19: Tyre sales, by value (at current prices) and volume, 2012-17
- Value sector increasingly squeezed as manufacturers invest in premium and budget lines
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- Figure 20: Tyre segmentation for replacement car tyres, by volume percentage, 2012-17
- Summer tyres continue to dominate despite interest in all-season
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- Figure 21: Winter/all-season tyres, 2012-17
- Tyre market supports a sizeable part-worn sector
- Other replacement parts have also been affected by a jump in prices
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- Figure 22: Segmentation of the other replacement parts market, by value, at current prices, 2012-17
- Re-manufactured sector is growing its presence in other parts market
Channels to Market
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- Independent garages dominate the aftermarket
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- Figure 23: Aftermarket outlets for sales of replacement parts *, 2013, 2015 and 2017
- Independent garages dominate
- Forecourt outlets in decline
- Franchised dealers benefit from stability
- Fast-fit network also showing signs of stability
- Car accessory shops continue their decline
- Motor factor market seeing consolidation
- The internet expands its presence
Market Drivers
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- Car market stagnates as new sales fall away
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- Figure 24: New and used car market volumes, 2012-17
- UK car parc surpasses 30 million vehicles
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- Figure 25: Number of licensed cars (Great Britain), 1995-2016
- Growth at both ends of the market
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- Figure 26: Age structure of the car parc in years, 2012-16
- Depreciation in Sterling following Brexit hits costs …
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- Figure 27: Month-end Sterling average values versus US Dollar and euro, Jan 2016 to Sept 2017
- … while concerns about leaving the EU have also intensified
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- Figure 28: Level of concern over the impact of the EU referendum, July 2016-June 2017
- Servicing and repair expenditure records increase during 2016
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- Figure 29: Consumer expenditure on car purchasing, servicing and repair and motoring expenses, seasonally adjusted at current prices, 2012-16
- Petrol dominates as diesel’s popularity stalls
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- Figure 30: Sales of new cars by fuel type, 2012-17
- Number of trips taken by individuals overall is in decline
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- Figure 31: Trips, distance travelled and time taken, 2006-16
- Multiple car ownership creeps upward
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- Figure 32: Percentage of households with car availability, in England, 2006-16
- Tyres are the part most likely to be replaced on a 12-month basis
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- Figure 33: Fitting/purchasing of replacement parts in the last 12 months, September 2017
- Lighting and signalling are a key reason for MOT failure
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- Figure 34: Road vehicle testing scheme (MOT), selected reasons for failure, car tests, 2013/14-2015/16
- Regular maintenance is an important factor in purchasing
Companies and Brands – What You Need to Know
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- Complexity of supply market is illustrated by the tyre sector
- Acquisition activity high during 2017
- Innovation comes in a variety of forms
- Promotional expenditure on an upward trend
Market Share
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- Tyre sector shows signs of consolidation
- Premium marques record an improvement in share during 2016
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- Figure 35: UK – Tyres: company market share, by volume, 2014-16
- ‘Other’ replacement parts
Competitive Strategies
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- All change in the parts distribution market
- Tyre distributor subject to foreign takeover
- Peugeot invests in loyalty to maintain market presence
- Re-brand follows merger
- New service portal to promote market presence and drive sales
- Brexit uncertainty affects IPO
- Picking up assets
Launch Activity and Innovation
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- Combined wheel and tyre under development
- Improved drive system unveiled
- Quieter winter tyres on the way
- Intelligent lighting links car and home
- New battery technology promises longer range and faster charging
Advertising and Marketing Activity
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- Expenditure falls back after peaking in 2015
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- Figure 36: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, 2013-17
- Tyres benefit from growth in their share of expenditure
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- Figure 37: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by category, 2013-17
- Television expenditure strengthens as press investment declines
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- Figure 38: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by media type, 2013-16
- Michelin dominates as Halfords builds investment
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- Figure 39: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, 2013-16
- Tyres dominate expenditure
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- Figure 40: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by campaign, 2013-16
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Cars the most popular form of vehicle in ownership
- Over a fifth of car owners have a vehicle over 10 years old
- Most car owners are responsible for maintenance
- Tyres are the part that is most likely to have been replaced
- Regular maintenance/service and problem awareness are the two main reasons for replacing a part
- Automotive stores and websites are especially popular for replacement parts
- Brexit price rises for maintenance and servicing are a concern for around half of car owners
Vehicle Ownership
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- More owners are likely to purchase their car used
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- Figure 41: Vehicle ownership, September 2017
- New car ownership records strong differences
- Several groups are likely to not own a motor vehicle
- Cars may well be benefiting from the rise in vehicle ownership
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- Figure 42: Vehicle ownership, 2015-17
Age of Car
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- Sharp contrasts in age of cars that are being driven
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- Figure 43: Age of car, September 2017
- Older adults prefer older cars
- Socio-economic status also impacts on age of car
- Urban dwellers prefer newer cars
- Newer cars account for a growing share of vehicles
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- Figure 44: Age of car driven, 2014-2017
Responsibility for Maintenance and Servicing
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- Most car owners have responsibility for maintenance and servicing
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- Figure 45: Responsibility for maintenance and servicing, September 2017
- Women are more likely to rely on assistance from others
- One in 10 17-24-year-olds rely on someone else
- Low income car owners are more likely to be responsible …
- … with the opposite the case for rural drivers
Purchase of Replacement Parts
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- Tyres are the part most likely to have been purchased
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- Figure 46: Purchase of replacement parts, September 2017
- Men are more likely to have purchased parts
- Young adults are an important buying group
- Wealth appears to play a role in parts replacement
- Regional variations add to the complexity of the market
- Used car owners are more likely to have replaced parts recently
Reasons for Replacement
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- Regular servicing and awareness of problem lead reasons for replacement
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- Figure 47: Reasons for replacement, September 2017
- Younger adults are less likely to plan ahead …
- … with this also the case for urban residents
- Parts failure as a reason for replacement falls sharply
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- Figure 48: Reasons for replacement, 2016 and 2017
- New car owners are more likely to replace parts for discretionary reasons
Purchase Channels
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- Automotive retail stores dominate purchasing
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- Figure 49: Purchase channels, September 2017
- Automotive outlets popular with young adults
- Indirect purchasing via third parties is popular with older adults
- Wealthier car owners show interest in use of a variety of retail channels
- Use of the internet varies depending on car age
- Automotive retail stores and third parties are preferred in emergencies
- Young adults and those on low incomes focus on a single sales channel
Implications of Brexit
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- Increased costs are a concern for around half of car owners
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- Figure 50: Implications of Brexit, September 2017
- Young adults, families and larger households appear the most concerned
- Women are also more concerned than men
- Income is not a major factor in affecting concern
- Owners of older cars appear less bothered about potential price increase
- Car owners who are jointly responsible for servicing and maintenance have greater worries
Appendix – Data Sources, Abbreviations and Supporting Information
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- Data sources
- Exclusions
- Abbreviations
- Consumer research methodology
Appendix – Market Size and Forecast
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- Market sizing and segment performance
- Forecast methodology
- Forecast data
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- Figure 51: Forecast of UK car aftermarket (value) – Best- and worst-case scenarios, 2017-22
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