Table of Contents
Executive Summary
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- The market
- Revenues boosted by rising prices
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- Figure 1: UK car aftermarket, by value, 2014-24
- Replacement tyres dominate market by value
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- Figure 2: Segmentation of the car aftermarket, percentage value, 2014-19
- Independent garages dominate as the main channel for replacement parts
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- Figure 3: Aftermarket outlets for sales of replacement parts*, 2019
- Steady expansion in the number of older cars
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- Figure 4: Age structure of the UK car parc in years, 2014-18
- Companies and brands
- Multinational suppliers dominate the market
- Advertising and promotional spend is in decline
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- Figure 5: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by category, 2015-18
- The consumer
- Most vehicles in ownership are cars
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- Figure 6: Vehicle ownership, September 2019
- Only a third of cars are under 3 years old
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- Figure 7: Age of car owned, September 2019
- Most car owners are also responsible for maintenance of their vehicle
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- Figure 8: Responsibility for maintenance and servicing, September 2019
- Regular servicing and problems with parts dominate reasons for replacement
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- Figure 9: Reasons for replacement, September 2019
- In-store purchasing of replacement parts is popular
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- Figure 10: Interest in in-store purchasing, September 2019
- Specialist automotive channels are preferred
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- Figure 11: Likely to purchase in-store, September 2019
- Purchasing online has mixed appeal
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- Figure 12: Interest in online purchasing, September 2019
- Automotive specialists are also preferred for those going online
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- Figure 13: Likely to purchase online, September 2019
- Brexit price increases are a concern for over half of car owners
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- Figure 14: Brexit and servicing and repair costs, September 2019
- What we think
Issues and Insights
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- Interest in the internet is growing
- The facts
- The implications
- Automotive sector continues to evolve
- The facts
- The implications
- Premiumisation within the tyre sector
- The facts
- The implications
The Market – What You Need to Know
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- Revenue growth hampered by quality improvements and longer service intervals
- Inflation within the tyre sector helping to re-assert its importance
- Replacement parts available from a number of locations
- Automotive sector facing a number of pressures
Market Size and Forecast
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- Revenues continue to grow
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- Figure 15: UK car aftermarket, by value, 2014-24
- Figure 16: UK car aftermarket*, by value, at current and constant prices, 2014-24
- Slower tyre sales hamper its profile
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- Figure 17: Segmentation of the car aftermarket, by value, at current prices, 2014-19
- Forecast methodology
Market Segmentation
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- Volumes stagnate while value uplifted by shift to 4x4 and premium
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- Figure 18: Tyre sales, by value (at current prices) and volume, 2014-19
- Average tyre prices approach £90
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- Figure 19: Average tyre price (fitted), 2014-19
- Premium and value tyres make gains against the budget sector
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- Figure 20: Tyre sales, by price position (percentage volume), 2014-19
- Summer tyres are the preferred replacement tyre
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- Figure 21: Tyre sales, by type (volume), 2014-19
- Part-worn tyre sales in excess of 4 million units per annum
- Other replacement parts continue to be affected by inflationary pressure
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- Figure 22: Segmentation of the other replacement parts market, by value, at current prices, 2014-19
- Remanufactured sector is growing its presence in other parts market
Channels to Market
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- Independent garages continue to offer the most opportunities
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- Figure 23: Aftermarket outlets for sales of replacement parts*, 2015, 2017 and 2019
- Independent garages represent the largest number of outlets
- Forecourt outlets are in steady decline
- Franchised dealers suffer fall in share of market
- Fast-fit operators are growing their share of the market
- Car accessory shop numbers also suffer steady decline
- Motor factor market also seeing consolidation
- The internet may account for 1 in 10 purchases
Market Drivers
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- UK car parc now surpasses 31 million vehicles…
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- Figure 24: Number of licensed cars (Great Britain), million units, 1998-2018
- …despite both new and used sales currently being in decline
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- Figure 25: New and used car market volumes, 2014-19
- Trend towards owning older cars is increasing
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- Figure 26: Age structure of the UK car parc in years, 2014-18
- Dual/multipurpose vehicles grow are currently best performing sector
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- Figure 27: New car registrations, by broad segment (volume share), 2013 and 2018
- Brexit appears to have done little to impact on consumer confidence
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- Figure 28: Mintel financial confidence tracker, January 2017-August 2019
- Sterling continues to perform poorly against the US Dollar and the euro
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- Figure 29: Sterling average monthly value versus US Dollar and euro, January 2016-July 2018
- Owning a car is increasingly becoming expensive
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- Figure 30: Consumer expenditure on car purchasing, servicing and repair and motoring expenses, seasonally adjusted at current prices, 2014-18
- Cars are becoming more reliable
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- Figure 31: Road vehicle testing scheme (MOT), selected reasons for failure, car tests, 2014/15-2017/18
- Maintenance is the main reason for replacement
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- Figure 32: Reasons for replacement, 2018 and 2019
- Trips taken are growing but not distance travelled
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- Figure 33: Trips, distance travelled and time taken, England, 2008-18
- Growing percentage of households own two or more vehicles
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- Figure 34: Percentage of households with car availability, England, 2008-18
- Used and refurbished market remains a threat to the market
Companies and Brands – What You Need to Know
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- Trading up by consumers benefits premium brands
- Environmental benefits prove popular with innovators
- Investment directed towards car parts is weakening
Market Share
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- Mixed progress for new entrants
- Trading up by consumers benefits premium brands
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- Figure 35: UK – Tyres: company market share, by volume, 2014-18
- ‘Other’ replacement parts
Launch Activity and Innovation
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- Volkswagen offers technology to reduce NOx emissions by up to 80%
- Michelin offers a tyre without air
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- Figure 36: Michelin UPTIS tyre
- New battery technology promises over 600 miles between charges
- Aluminium brake discs offer environmental benefits
- Retrofit oil filter that can signal poor performance to the driver
- Lexus innovates with new shock absorber design
Advertising and Marketing Activity
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- Promotional investment in decline
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- Figure 37: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, 2015-19
- Expenditure on passenger tyres is weakening
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- Figure 38: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by category, 2015-19
- Digital assumes dominance in 2019
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- Figure 39: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by media type, 2015-19
- Michelin leads the market
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- Figure 40: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by advertiser, 2015-18
- Batteries and tyres dominate main campaigns
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- Figure 41: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by advertiser and campaign, 2018
- Nielsen Ad Intel coverage
The Consumer – What You Need to Know
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- Older adults are an important car ownership group
- Men and younger adults are more likely to own the newest cars
- Most car owners responsible for maintenance and servicing
- Regular maintenance/servicing and recommendations dominate reasons for parts replacement
- In-store purchasing of replacement parts is popular
- Online channels present a more mixed response
- Over half of car owners concerned about no deal Brexit price increases
Vehicle Ownership
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- Cars dominate vehicle ownership
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- Figure 42: Vehicle ownership, September 2019
- Older adults more likely to own a standard car
- Young men and city dwellers show strong interest in hybrid and electric
- Young adults most likely to own another type of vehicle
Age of Car Owned
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- Only a third of cars are 3 years old or less
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- Figure 43: Age of car owned, September 2019
- Men are more likely to own newer cars
- Age is another important factor impacting on the age of car owned
- Income and socio-economic status also impact on age of car owned
- Rising interest in the nearly new sector
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- Figure 44: Age of car driven, 2015-19
Responsibility for Maintenance and Servicing
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- Most car owners take responsibility for vehicle maintenance
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- Figure 45: Responsibility for maintenance and servicing, September 2019
- Men are more likely to have sole responsibility for maintenance and servicing
- Young adults are more likely to want to be jointly responsible
Reasons for Replacement
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- Problems and recommendations dominate reasons for replacement
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- Figure 46: Reasons for replacement, September 2019
- Younger men are open to influence by others
- Replacement as part of maintenance and servicing is important for older adults
- Londoners are reluctant to replace when necessary
- Hybrid and electric car owners focus on preventative maintenance
- Owners of older cars are more likely to make distress purchases
- Reasons for replacing parts – CHAID analysis
- Older homeowners who are not working are an important group for replacing parts through regular maintenance and servicing
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- Figure 47: Car aftermarket – CHAID – Tree output, September 2019
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- Figure 48: Car aftermarket – CHAID – Table output, September 2019
Interest in In-store Purchasing
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- Strong interest in purchasing in-store
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- Figure 49: Interest in in-store purchasing, September 2019
- In-store purchasing is popular with young adults
- City residents are another lucrative market for retailers
- Additional products and services are possible with wealthy households and young parents
- Store purchasing popular with hybrid and electric car owners
- Owners of new cars present a good market
- Those with responsibility for their cars upkeep are more likely to purchase in-store
- Specialist automotive channels are preferred for in-store purchasing
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- Figure 50: Likely to purchase in-store, September 2019
- Automotive outlets are popular with older adults
- Young men favour traditional retailers
- Automotive retailers can benefit from high earners
- New car owners are likely to focus purchasing on automotive retail specialist
- Automotive outlets record falling interest
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- Figure 51: Likely to purchase in-store, 2018 and 2019
Interest in Online Purchasing
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- Purchasing online has mixed appeal
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- Figure 52: Interest on online purchasing, September 2019
- Youngest adults have strongest desire to go online…
- …while interest from those in cities is also high
- Affluent adults are a lucrative market
- Hybrid and electric car owners should be a focus for online retailers…
- …as well as owners of the newest cars
- Online popular with those who have maintenance responsibilities
- Similar focus towards specialists for those going online
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- Figure 53: Likely to purchase online, September 2019
- Older adults have strongest focus on particular outlets
- General online retailers offering parts are favoured by the less affluent
- Broadest appeal for websites come from those with 7-10 year old cars
- Are auction sites falling out of favour?
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- Figure 54: Likely to purchase online, 2018 and 2019
Brexit and Its Implications
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- Over half are concerned about possible Brexit price increases
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- Figure 55: Brexit and servicing and repair costs, September 2019
- Women and young have greatest concerns
- City dwellers also have concerns
- Hybrid and EV car owners are most concerned about price rises
- Older car owners least concerned about Brexit risk
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 56: Forecast of UK car aftermarket (value) – Best- and worst-case scenarios, 2019-24
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