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 set to accelerate as prices rise
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- Figure 1: Car parts aftermarket, by value, 2011-21
- Tyres account for over half of the market
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- Figure 2: Segmentation of the car parts aftermarket, percentage value, 2011-16 (est)
- UK car parc shows polarisation
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- Figure 3: Age structure of the car parc in years, 2011-15
- Independent garages dominate as the main channel for replacement parts
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- Figure 4: Aftermarket outlets for sales of replacement parts*, 2016
- Companies and brands
- Parts aftermarket supports a large number of manufacturers
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- Figure 5: UK – Replacement tyres: company market share, by volume, 2015
- Advertising expenditure shows evidence of recovery
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- Figure 6: Recorded above-the-line, online display and direct mail total advertising expenditure on aftermarket products, 2012-15
- The consumer
- Cars purchased used, as opposed to new, dominate the market
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- Figure 7: Vehicle ownership, September 2016
- A significant percentage of cars in ownership are over six years old
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- Figure 8: Age of car driven, September 2016
- Most car owners take responsibility for servicing and maintenance
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- Figure 9: Responsibility for maintenance and servicing, September 2016
- New parts are preferred over part worn or refurbished
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- Figure 10: Purchase of replacement parts (new, part worn or refurbished), September 2016
- Motor retailers are the most important channel for purchasing
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- Figure 11: Channels used for purchasing, September 2016
- Part failure is the main reason for replacement
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- Figure 12: Reasons behind replacement of car part/s, September 2016
- Independent garages and established maintenance practices receive strong support
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- Figure 13: Statements associated with replacement parts, September 2016
- What we think
Issues and Insights
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- What we will be the impact of rising prices?
- The facts
- The implications
- What potential does an ageing car parc offer?
- The facts
- The implications
- What will be the impact of further changes to parts distribution
- The facts
- The implications
The Market – What You Need to Know
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- Market value is being boosted by rising prices
- Expansion of the UK car parc is a major driver behind growth
- An ageing car parc is also stimulating sales
- Tyres are the largest segment with the strongest value growth
- Budget and all-season tyres seeing increased demand
- Improvements in technology boost value for some segments but not others
- Number of channels offering replacement parts is in decline
Market Size and Forecast
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- Depreciation of Sterling in second half of 2016 negatively impacts on prices
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- Figure 14: Car aftermarket*, by value, at current and constant prices, 2011-21
- Tyres are the most valuable segment within the market
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- Figure 15: Segmentation of the car aftermarket, by value, at current prices, 2011-16
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- Figure 16: Car aftermarket, by value, 2011-21
- Forecast methodology
- The impact of the EU referendum vote
- Expenditure on replacement parts was impacted during the last economic slowdown
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- Figure 17: Alternative market scenarios for the post-Brexit car aftermarket, at current prices, 2016-21
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- Figure 18: Detailed post-Brexit scenarios for the car aftermarket, at current prices, 2016-21
- Wider demand for vehicles is set to soften after a period of expansion
Market Segmentation
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- Tyres start to see recovery in sales value
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- Figure 19: Tyre sales, by value (at current prices) and volume, 2011-16
- Budget tyres dominate although the premium sector is fighting back
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- Figure 20: Tyre segmentation for replacement car tyres, by volume percentage, 2011-16
- Summer tyres dominate despite the challenge from all-season
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- Figure 21: Winter/all-season tyres, 2011-16
- Competition from part-worn tyres
- Value sales for other replacement parts also increasing
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- Figure 22: Segmentation of the other replacement parts market, by value, at current prices, 2011-16
- Improvements in technology help boost some products …
- … while efforts to extend life impacts on other categories
- External factors impact on prices
Channels to Market
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- Independent garages dominate the parts aftermarket
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- Figure 23: Aftermarket outlets for sales of replacement parts *, 2010-16
- Independent garages dominate the market
- Forecourt outlets in decline
- Franchised dealers benefit from stability
- Fast fit network also showing signs of stability
- Car accessory shops continue to decline
- Motor factor market continues to consolidate
- The internet
Market Drivers
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- New car sales perform stronger than the used sector
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- Figure 24: New and used car market registrations, 2011-16
- UK car parc surpasses 30 million vehicles
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- Figure 25: Number of licensed cars (Great Britain), 1995-2015
- Second-hand cars benefit from falling prices
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- Figure 26: Price indices of new and used cars, 2002-14
- A car parc that is growing while also ageing
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- Figure 27: Age structure of the car parc in years, 2011-15
- Servicing and repair costs continue to increase
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- Figure 28: Consumer expenditure on car purchasing, servicing and repair and motoring expenses, seasonally adjusted at current prices, 2011-15
- Diesels capture sizeable share of market
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- Figure 29: New car registrations, by fuel type, 2011-16
- Personal mobility is in decline
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- Figure 30: Trips, distance travelled and time taken (England), 2005-14
- Expansion in car sales has little impact on multi-car ownership
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- Figure 31: Percentage of households with car availability, in England, 2004-14
- Tyres are the part most likely to need replacement
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- Figure 32: Purchase of new, part worn or refurbished replacement parts, September 2016
- Lighting and signalling are a key reason for MOT failure
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- Figure 33: Road vehicle testing scheme (MOT), selected reasons for failure, car tests, 2010/11-2014/15
- Regular maintenance is not undertaken by all car owners
- Other factors influencing the market
- UK population both growing and ageing
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- Figure 34: Trends in the age structure of the UK population, 2011-21
- Brexit is likely to have a mixed impact on the market
Companies and Brands – What You Need to Know
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- Low-cost manufacturers take a growing share of the market
- Improvements and innovations typify the actions of manufacturers
- Advertising expenditure showing signs of increasing
Market Share
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- Tyre sector continues to see growth of low-cost manufacturers
- Nexen leads the replacement tyre market
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- Figure 35: UK – Tyres: company market share, by volume, 2014 and 2015
- ‘Other’ replacement parts
Competitive Strategies
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- Acquisitions used to broaden market presence
- Partnerships used to raise the profile of brands
- Innovation offers the opportunity to differentiate a product within the market
- Being positioned with the right image can be crucial in raising sales
Launch Activity and Innovation
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- All-terrain tyre
- Award-winning tread-replenishing tyre
- Handheld 3D tread reader device
- Quickco launch e-commerce site giving private customers access to its one million car parts
- Dazzle-free headlights
- Oil change in a box
- New shock absorber that saves fuel and improves ride comfortability
Advertising and Marketing Activity
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- Advertising expenditure rebounds
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- Figure 36: Recorded above-the-line, online display and direct mail total advertising expenditure on aftermarket products, 2012-16
- Tyres see their share of expenditure fall back
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- Figure 37: Recorded above-the-line, online display and direct mail total advertising expenditure on aftermarket products, by category, 2012-16
- Television expenditure up in 2015
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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, 2012-15
- Michelin and Kwik-Fit up their investment
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- Figure 39: Recorded above-the-line, online display and direct mail total advertising expenditure on passenger tyres, 2012-15
- Peugeot sees a surge in component expenditure
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- Figure 40: Recorded above-the-line, online display and direct mail total advertising expenditure on motor components and parts, 2012-16
- A note on adspend
The Consumer – What You Need to Know
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- Three quarters of adults own a car - three out of ten own a car under three years old
- Majority of car owners take responsibility for maintenance
- Tyres are the part that is most likely to be purchased
- New parts are more popular than refurbished or part-worns
- Specialist motor retailers dominate channels used for purchasing
- Failure of a part is the most likely reason for its replacement
- Independent garages receive strong support from car owners
Vehicle Ownership
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- Buying used is more popular than buying new
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- Figure 41: Vehicle ownership, September 2016
- New car ownership records strong differences
- Non-car owners are likely to be young women, urbanites and less affluent
Age of Car
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- Newer cars are the most prominent in terms of ownership
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- Figure 42: Age of car driven, September 2016
- Young and old exhibit specific preferences for vehicles by age
- Socio economic status has a big impact on age of vehicle
- Ownership of new cars is strengthening
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- Figure 43: Age of car driven, 2011-16
Responsibility for Maintenance and Servicing
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- Sole responsibility typifies maintenance and servicing
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- Figure 44: Responsibility for maintenance and servicing, September 2016
- Maintenance and servicing prove popular with older males
- Low earners also record a strong interest in responsibility for maintenance and servicing
Purchase of Replacement Parts
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- New parts are more popular than part-worn/refurbished parts
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- Figure 45: Purchase of replacement parts, September 2016
- Young adults record preference for refurbished/part worn parts
- Urban, suburban and village car owners have different preferences
- Income – a major factor influencing interest in new parts
- Owners of used and older cars are more likely to replace certain parts
- A market of those purchasing some and those purchasing many
Channels Used For Purchasing
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- Motor retailers are the most important channel for purchasing
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- Figure 46: Channels used for purchasing, September 2016
- Old and young car owners have different purchasing preferences
- Urban car owners are happy to look at various channels
- Wealth does not necessarily suggest a reliance on others to buy parts
- Owners of used and older cars prefer to use non-traditional channels
Reasons Behind Replacement of Car Part/s
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- Failure dominates as the reason for parts replacement
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- Figure 47: Reasons behind replacement of car part/s, September 2016
- Recommendations are important for women
- Use of media is important in raising awareness of young car owners
- Sharp contrasts in reasons for replacement by income
- New car owners are responsive to product and manufacturer recalls
- Other retailers have a limited role in parts replacement
Reasons Behind Replacement of Car Part/s - CHAID Analysis
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- Methodology
- Less affluent car owners favour use of specialist retailers when purchasing car parts
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- Figure 48: Car aftermarket – CHAID – Tree output, September 2016
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- Figure 49: Car aftermarket – CHAID – Table output, September 2016
Statements Associated with Cars and Replacement Parts
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- Independent garages have a role in fitting parts
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- Figure 50: Statements associated with replacement parts, September 2016
- Older adults look to third parties when buying and fitting parts
- Group A adults want brands but are happy to look at different channels when purchasing
- Owners of younger cars favour involvement of others in parts replacement
- Those buying parts through general retailers think differently to those using specialise retailers
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
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