This report presents a review of the UK car parts aftermarket and examines the market for a number of the most common parts that are purchased by car owners as part of either maintenance or repair. The report also looks at the role of consumers in this market, focusing on areas such as their purchasing habits and where parts are fitted, as well as consumer attitude towards replacement parts.
There is good evidence that the recovery of the UK economy is bringing about benefits for replacement parts. Latest research by Mintel places the value of the market in 2013 at £5.24 billion which is 4.1% ahead of 2012. Although the sector continues to suffer from the impact of price competition, as well as moves by both vehicle manufacturers and owners to delay maintenance and servicing, this recent uplift in value is well ahead of that seen during the recent economic slowdown.
The tyre sector has recently been a driver in increasing sales, boosted by a combination of rising raw material costs and moves by manufacturers to encourage trading up through the purchase of winter and all weather tyres. Yet the sector also remains affected by the rising success of budget tyres with this depressing average prices and dampening growth. Other car parts have suffered from this problem much less although here the issue of manufacturers looking to increase the life span of parts is an issue. One potential boost, however, is coming from the increasing sophistication of modern cars which means that more robust parts are now required at the OE (Original Equipment) stage with this set to result in more costly replacements being required.
The market supports a large number of players and is highly fragmented. An increasing percentage of those active in the UK are overseas companies with low cost brands, as already highlighted, making strong inroads into the tyre sector. Counterfeit parts, although not a major feature of the market, have shown evidence of increasing their presence during the recent recession although as the economy improves their profile is expected to fall back.
Definition
Car aftermarket parts are defined as products that need to be replaced in order that, mechanically, the car may function better or, indeed, at all. In this respect, they differ from car accessories, which may include comfort, security and/or appearance as the prime motivators to purchase.
For the purpose of this report only a number of major aftermarket parts are reviewed. These are defined as those parts that are typically able to be serviced at automotive fast fit centres in addition to dealers and garages. Replacement tyres are also included in this definition. The full line-up of parts reviewed is as follows:
shock absorbers and related parts
oil filters and related parts
tyres
exhausts and related parts
batteries
brakes and related parts.
The product areas covered in this report may be purchased from a retail outlet and fitted by the car owner or will be purchased from a garage, dealership, fast-fit outlet or a mechanic and fitted by a professional.
This report purely covers the sale of this type of good to consumers (and not trade between suppliers/manufacturers and retailers).
Exclusions
All parts that are purchased/fitted are presumed to be new and not used. Used parts, such as part worn tyres, are excluded as well as refurbished parts that may be offered to the car driver as an alternative to buying new.
Parts supplied as Original Equipment (OE) by car manufacturers and car security products, whether OE or aftermarket, are also excluded from the scope of this report.
Excluded from the analysis are labour costs associated with the fitting of such parts, where relevant, as well as work undertaken as part of warranty or insurance claims.
Value figures throughout this report are at retail selling prices (rsp) unless otherwise stated. Market sizes at 2014 prices are calculated using Mintel’s motoring deflator.
