Car Aftermarket - UK - November 2012

INTRODUCTION
Definition
Exclusions
Abbreviations
EXECUTIVE SUMMARY
The market
Figure 1: UK car parts aftermarket, by value, at current prices, 2007-17
Market factors
Companies, brands and innovation
Figure 2: UK – Tyres: Company market share, by value, 2011
The consumer
Figure 3: Age of car owned, October 2012
Figure 4: Replacement parts bought, October 2012
Figure 5: Where car repairs have been carried out in the last 12 months, October 2012
Figure 6: Attitudes towards cars and car repairs, October 2012
What we think
ISSUES IN THE MARKET
How can consumer demand be stimulated?
What can be done to encourage trading up?
What is the impact of increased reliability of modern cars?
How can greater confidence be created for consumers to use new distribution channels?
How successful has branding been?
TREND APPLICATION
Survival skills
Experience Is All
Trend 2015: Access Anything Anywhere
INTERNAL MARKET ENVIRONMENT
Key points
Used car market performing the strongest
Figure 7: Private new car registrations and used car sales, 2007-12
New car sales show little evidence of sustained recovery
Used car market appears stronger
UK car parc is relatively stable
Figure 8: Number of cars in the car parc, 2005-11
Four fifths of cars over three years old
Figure 9: Age structure of the car parc in years, 2011
Miles driven by car owners is in decline
Figure 10: Road traffic (vehicle miles) driven by cars and taxis, 2007-11
Lights, suspension and brakes are key areas for parts replacement
Figure 11: Road vehicle testing scheme (MOT), selected reasons for failure, car tests, 2008-11
Diesels steadily growing their share of the market
Figure 12: New car registrations, by fuel type, 2007-12
Mixed messages on vehicle replacement intentions
Figure 13: Car buying intentions in the next 12 months, March 2012
Home maintenance increasingly eschewed by drivers
BROADER MARKET ENVIRONMENT
Key points
UK economy continues to stutter
Figure 14: GDP, PDI, consumer expenditure and savings, at constant 2007 prices, 2007-17
... with drivers wary of spending on parts
Fuel prices remain high
Figure 15: Monthly UK petrol diesel and oil price trends, 2009-12 *
Is rising affluence at an end?
Figure 16: Forecast adult population trends, by socio-economic group, 2007-17
Older adults set to grow profile
Figure 17: Trends in the age structure of the UK population, 2007-17
COMPETITIVE CONTEXT
Key points
Costs to keep a car on the road keep increasing
Figure 18: Consumer expenditure on car purchasing, servicing and repair and motoring expenses, seasonally adjusted at current prices, 2008-11
Parts manufacturers face competition at a global level
Cost pressures help shift many towards use of the internet
Counterfeiting remains a challenge
STRENGTHS AND WEAKNESSES IN THE MARKET
Strengths
Weaknesses
WHO’S INNOVATING?
Key points
A dynamic market
Green developments
Customer focus
Winter opportunities for those in the tyre sector
Online interaction proving popular with manufacturers
MARKET SIZE AND FORECAST
Key points
Car parts aftermarket not immune from downturn
Figure 19: UK car parts aftermarket*, by value, at current and constant prices, 2007-12
Tyres dominate automotive aftermarket sales
Figure 20: Segmentation of the car parts aftermarket, by value, at current prices, 2007-12
The future
Figure 21: UK car parts aftermarket, by value, at current prices, 2007-17
Forecast
Figure 22: UK car parts aftermarket, by value, at current prices, 2007-17
MARKET SEGMENTATION
Key points
Tyre market hit by recession and trading down...
Figure 23: the tyre market , by value (at current prices) and volume, 2007-12
... yet dominated by premium tyres
Figure 24: Tyre segmentation for replacement car tyres, by volume percentage, 2010
Stronger used car market boosts other parts sales
Figure 25: Segmentation of the car aftercare market, by value, at current prices, 2007-12
MARKET SHARE
Key points
Relatively fragmented tyre market
Figure 26: UK – Tyres: Company market share, by value, 2011
COMPANIES AND PRODUCTS
 PARTS SUPPLIERS
Bosal International
Bosch
Delphi
Federal-Mogul
Hella
Tenneco
TRW
Visteon
Valeo
 RETAILERS
A1 motor stores
Euro Car Parts
GSF Car Parts
Halfords
Motor World
 TYRES
Bridgestone
Continental
Goodyear
Hankook
Michelin
Pirelli
BRAND COMMUNICATIONS AND PROMOTION
Key points
Overall expenditure shows increase
Figure 27: Main media advertising expenditure on car aftermarket products*, 2008-12
Tyres dominate aftermarket expenditure
Figure 28: Main media advertising expenditure, by key group, 2008-12
Brake and exhaust systems see collapse in expenditure
Figure 29: Main media advertising expenditure on car aftermarket products, by product category, 2008-12
Television proves the most popular medium for advertisers
Figure 30: Main media advertising expenditure on car aftermarket products, % share by media type, 2008-11
Manufacturers opt for digital media while installers for television
Major names dominate tyre sector
Figure 31: Total adspend on tyres by company, 2008-11
Tyre companies focus on television advertising
Figure 32: Tyre adspend, by media type, 2008-11
No obvious big spenders among other aftermarket parts
Figure 33: Tyre adspend, by media type, 2008-11
Press advertising has a stronger profile for other accessories
Figure 34: Other accessory adspend, by media type, 2008-11
CHANNELS TO MARKET
Key points
Independent garages important for automotive parts replacement
Figure 35: Aftermarket outlets for sales of replacement parts* 2008, 2010 and 2012
Independents garage numbers fall back
Petrol forecourts also suffer from a fall in outlets
Dealers respond to increased competition
Fast fit market continues to develop with Kwik Fit dominant
Figure 36: Top ten tyre and exhaust fitting centres, by number of outlets, 2010 and 2012
Car accessory shops suffer with Halfords coming to dominate the market
Figure 37: Top car accessory chains, by number of outlets, 2012
Specialists dominate for tyre market
Figure 38: Tyre distribution, by outlet, 2010
The internet
Slow progress in moving tyre sales online
Other replacement parts affected by do-it-for-me market
Price key for all
THE CONSUMER – CAR OWNERSHIP
Key points
Around two third of adults own a car
Figure 39: Car ownership, October 2012
Young drivers are least likely to drive a car purchased from new
Londoners shun car ownership
Income plays a part in owning new or used
Three quarters of cars are over three years old
Figure 40: Age of car owned, October 2012
Income plays important part in age of car
Urban drivers prefer to purchase new
Ford and Vauxhall dominate the market
Figure 41: Make of main car, October 2012
Ford has a much broader appeal amongst drivers
Those on the highest incomes appear to favour Ford
THE CONSUMER – PARTS REPLACEMENT
Key points
Tyres top the list as parts that need replacing
Figure 42: Replacement parts bought, October 2012
Tyres – a considered purchase?
Men more likely to purchase replacement parts
Young drivers are key purchasers
Urban drivers appear more prone to parts replacement
Parts replacement more of an issue for owners of second hand vehicles
Figure 43: Replacement parts bought, by car ownership, October 2012
Strong link between car age and need to replace parts
Figure 44: Replacement parts bought, by age of main car, October 2012
THE CONSUMER – UNDERTAKING OF REPAIRS
Key points
Independent garages are the most popular choice
Figure 45: Where car repairs have been carried out in the last 12 months, October 2012
Men opt for brands
Young drivers happier to look at alternatives to garages and dealers
Geographic presence helps mechanics and fast fit centres
Dealers in favour with owners of new cars
Figure 46: Where car repairs have been carried out in the last 12 months, by car ownership, October 2012
Independent garages and DIY repairs popular with owners of older cars
Figure 47: Where car repairs have been carried out in the last 12 months, by age of main car, October 2012
Exhausts, brakes and batteries require professional assistance
Figure 48: Where car repairs have been carried out in the last 12 months, by replacement parts bought, October 2012
THE CONSUMER – ATTITUDES TOWARDS REPLACEMENT PARTS
Key points
Drivers want reliability and will rely on others to repair their vehicle
Figure 49: Attitudes towards cars and car repairs, October 2012
Older car owners and high earners seek out reliability
Fast fit centres prompt divided views from young drivers in particular
Branded goods favoured by more affluent drivers
Young show strong interest in DIY repairs
APPENDIX – CONSUMER – CAR OWNERSHIP
Figure 50: Car ownership, by demographics, October 2012
Figure 51: Age of your main car, by demographics, October 2012
Figure 52: Make of main car, by demographics, October 2012
APPENDIX – CONSUMER – PARTS REPLACEMENT
Figure 53: Replacement parts bought, by demographics, October 2012
APPENDIX – CONSUMER – UNDERTAKING OF REPAIRS
Figure 54: Where car repairs have been carried out in the last 12 months, by demographics, October 2012
APPENDIX – CONSUMER – ATTITUDES TOWARDS REPLACEMENT PARTS
Figure 55: Agreement with the statements ‘Reliability is an important factor in deciding which brand of car I buy’ and ‘I lack the knowledge to carry out repairs to modern cars’, by demographics, October 2012
Figure 56: Agreement with the statements ‘Modern cars are less likely to break down these days’ and ‘The length of the car warranty is very important to me when buying a new/used car’, by demographics, October 2012
Figure 57: Agreement with the statements ‘I’d like to be able to carry out more repairs to my car myself’ and ‘I’d rather buy a brand new car to avoid mechanical problems you can get with used cars’, by demographics, October 2012
Figure 58: Agreement with the statements ‘I trust fast fit garages to provide a good quality service’ and ‘I am prepared to pay more for branded replacements/new parts’, by demographics, October 2012
Figure 59: Agreement with the statements ‘It’s worth changing your car regularly to avoid expensive repair costs’ and ‘I would avoid fast fit garages as I find them more expensive than other garages’, by demographics, October 2012
Figure 60: Agreement with the statements ‘Diesel vehicles are generally more reliable than petrol’ and ‘It’s enjoyable carrying out repairs to my car’, by demographics, October 2012