Expansion of Automotive Dealers on Online Platforms and Increasing Launches of New and Advanced Car Accessories

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US Automotive Aftermarket

US Automotive Aftermarket

US Automotive Aftermarket

Dublin, Oct. 11, 2023 (GLOBE NEWSWIRE) — The “U.S. Automotive Aftermarket: Insights & Forecast with Potential Impact of COVID-19 (2023-2027)” report has been added to ResearchAndMarkets.com’s offering.

The U.S. automotive aftermarket is expected to record a value of US$479.25 billion in 2027, growing at a CAGR of 3.08%, for the duration spanning 2023-2027.

The automotive aftermarket is poised for significant growth, driven by several key factors. These include the expansion of automotive production, a surge in used car sales, the increasing number of smartphone users, a rapid rise in electric vehicle sales, and the ongoing process of urbanization.

However, the market’s growth trajectory may face challenges from the expansion of ride-sharing services and the growing prevalence of aftermarket fraud. Some noteworthy trends that are expected to shape the market’s landscape include the increasing average age of vehicles, the expansion of automotive dealers into online platforms, and the launch of new and advanced car accessories.

The automotive aftermarket in the United States is experiencing substantial growth, primarily due to the presence of a well-established automotive industry. This sector encompasses both auto services and parts businesses.

Favorable government policies, regulations, and subsidies in the U.S. are boosting the demand for electric vehicles, leading to the greater use of lightweight auto parts in EV production to enhance efficiency. This trend is expected to contribute significantly to the growth of the U.S. automotive aftermarket in the coming years.

Key players operating in the U.S. automotive aftermarket include 3M Company, Lear Corporation, AutoZone, O’Reilly Auto Parts, Advance Auto Parts, and Cooper Tire & Rubber Company. The high level of competition in the market has encouraged these key players to gain a competitive edge by focusing on offering high-quality products.

In response to increasing price competitiveness in the U.S. market, various companies are challenged to provide innovative offerings that enable consumers to address evolving technologies at an economical price point. This approach is ultimately driving market growth.

Key Attributes:

Report Attribute

Details

No. of Pages

69

Forecast Period

2023 – 2027

Estimated Market Value (USD) in 2023

$424.49 Billion

Forecasted Market Value (USD) by 2027

$479.25 Billion

Compound Annual Growth Rate

3.1%

Regions Covered

United States

Key Topics Covered:

1. Overview
1.1 Introduction
1.2 Value Chain of OEM/OES in Aftermarket
1.3 Top Ten Trends in Automotive Aftermarket
1.4 The Future Development Direction of the Automobile Industry
1.5 Automotive Aftermarket Distribution Channels

2. Impact of COVID-19
2.1 Decline in Motor Vehicle Sales
2.2 Downfall in Consumer Spending
2.3 Impact on Automotive Dealership

3. The U.S. Market Analysis
3.1 The U.S. Automotive Aftermarket by Value
3.2 The U.S. Automotive Aftermarket Forecast by Value
3.3 The U.S. Specialty Auto Equipment Market by Value
3.4 The U.S. Specialty Auto Equipment Market Forecast by Value
3.5 The U.S. Specialty Auto Equipment Market by Product Type
3.5.1 The U.S. Auto Accessories & Appearance Products Market by Value
3.5.2 The U.S. Auto Accessories & Appearance Products Market Forecast by Value
3.5.3 The U.S.

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Toyota dealers nonetheless want compact pickup to take on Maverick

The comparison is not shed on Steve Gates, the current chairman of the Toyota National Dealer Council, and dealer principal of Gates Car Family, a group of 11 rooftops in Kentucky, Tennessee and Indiana that involves 3 Toyota shops as perfectly as a Ford keep. An unabashed Toyota enthusiast — Gates has been advertising Toyotas in Kentucky due to the fact he was 18 — he is been asking for a compact Toyota pickup “considering the fact that back again in the Jim Press times,” he reported, referring to the longtime brand name govt who still left the company in 2007. And now that Gates has seen what Maverick has done at his very own Ford store, he is even additional confident.

“We’re totally marketed out of Maverick, and we are bought out as far as we can perhaps see, and it hasn’t affected Ranger or F-150 a person little bit,” Gates claimed. “The top quality small truck is Toyota’s DNA. We listen to all the time, quite a few periods a 7 days, tales of persons who had more mature Toyota trucks, just before those trucks even experienced a identify, and they long for an additional smaller Toyota truck. I believe the quantity chance is huge, devoid of influencing Tacoma and Tundra income.”

Gates stated he and other members of the supplier council’s product or service committee have produced the request formally.

Toyota’s first pickup in the U.S. was the Toyota Stout in the mid-1960s. For 20 a long time, all of its compact pickups had single-row seating, typically a bench seat, and a little mattress. It wasn’t until finally the fifth-technology Toyota pickup debuted in 1989 that the manufacturer supplied any storage or seating room behind the front row seats.

Danny Wilson, supplier principal at Wilson Toyota of Ames in Iowa, who preceded Gates as dealer council chairman, claimed a unibody compact pickup would be a “fantastic participate in on the heritage of Toyota” as properly as supplying dealers an additional product or service to market.

“The tiny pickup truck? That is the place matters started off for Toyota,” stated Wilson, who’s also on the product or service committee.

“I feel that would be sort of a great way of thinking. It really is usually worked well when we have gone back to our roots. What we think is previous, the up coming technology thinks is new and awesome.”

Wilson cautioned, having said that, that these a truck would have to be up to date. “There’s bought to be a minimal little bit of utility to it it are not able to be just a two-seater with a bed.”

He stated Toyota’s platform technique would allow for supplemental flexibility that was not there historically.

“I consider with the new platforms and the way they are accomplishing production, with the way it’s established up, they can switch the faucet up and down to get it exactly where it needs to be from a production standpoint,” if it really is

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LIFO tax relief monthly bill for auto dealers to be reintroduced

Kildee claimed he expected the Senate’s prior passage of the invoice will assistance his renewed work this calendar year. Even so, in the new Congress, with Republicans managing the Property and Democrats keeping a slender bulk in the Senate, the bill’s route ahead is fewer clear.

“You can find a little bit of uncertainty here in Congress right now, so even though I believe logic claims we ought to be able to move it, of course, we cannot depend on that by yourself,” Kildee mentioned. “We’re going to have to force.”

Previous 12 months, the monthly bill was co-sponsored by more than 170 Democratic and Republican Household lawmakers. Kildee said he’ll be functioning to get a equivalent level of bipartisan aid.

“Then we will look for the right motor vehicle. If there is a tax package deal that is shifting, definitely, that’s just one way to do it,” he explained. “I might like to see it move sooner fairly than later. If it arrives to the level the place we imagine there is certainly an chance to do this as a standalone piece of legislation, we will acquire it.”

Businesses on LIFO — a tax deferment tactic employed by about 50 % of the nation’s new-car or truck dealerships — need to sustain a sufficient amount of stock at 12 months conclusion to keep away from triggering a perhaps large earnings tax invoice.

But production concerns associated to COVID-19 and the microchip scarcity greatly minimized the move of new autos to dealership heaps and curtailed inventories starting off in 2020 and worsening in 2021. That produced the extensive-deferred cash flow suddenly taxable at federal and condition amounts.

For some sellers, the LIFO recapture has led to further tax payments from $100,000 to $2 million or far more during the 2022 filing year that lined 2021 tax returns.

The Countrywide Vehicle Sellers Affiliation, which has been lobbying Congress and the Biden administration for LIFO relief on behalf of new-vehicle dealers, told Automotive News in December it will do the job with the lawmakers who supported final year’s charges “to create on our momentum and shift the laws as before long as possible.”

To be confident, U.S. dealership profitability rose to document-higher stages in 2020 and 2021, fueled by tight inventories and high per-automobile margins. When questioned whether he has confronted criticism about the will need for LIFO relief provided the record yearly gains, Kildee reported there will generally be exceptions.

“That’s why we tried out to make the issue that most car dealerships are not these massive, effectively-capitalized conglomerates but are little, family-owned, basically generational businesses, for which this event is a significant hit,” he stated. “So I get it. I fully grasp it. But the majority of the folks we’re seeking to help do not healthy that category. They’re struggling to get by.”

Arrington explained he was proud to perform with Kildee to assure “we grant temporary and specific relief to people who are unable to replenish their inventory at

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Car or truck dealers increasingly apprehensive about the overall economy

Although new-motor vehicle supply has modestly enhanced, provides haven’t recovered to the diploma sellers are searching for, the study final results confirmed.

About 71 percent of respondents stated new-car inventory levels for the brand names they signify are not again in line with need. Various respondents separately pointed out the product blend they are acquiring is off or doesn’t align with the marketplace.

Germain’s Farkas believed that far better new-car gross sales, aided by amplified creation for the Honda brand name, will provide a 6 p.c maximize to his dealership’s bottom line in 2023.

“I believe output is likely to select up,” Farkas reported. “I really do not feel it’s likely to be at the same degree that the manufacturer’s suggesting at this position, but I do see an raise.”

As new-motor vehicle provide has enhanced, it’s distinct that dealerships have started to pull back on the markups more than sticker value that have been persistent the past few of many years. 1-quarter of respondents to the 2023 study claimed they go on to demand markups, with the most widespread percentage maximize more than sticker remaining 5 % or a lot less. In the 2022 survey, 38 per cent of respondents mentioned they were being marking up, with the most frequent percentage boost ranging from 6 to 10 percent over sticker. 

Approximately half of 2023 study respondents explained they be expecting inventory availability to be back again in line with demand from customers someday in 2024. Just about a quarter are expecting that to happen by the conclusion of this yr. 

Employed-automobile stock will stay tough to get, also, explained Ted Marshall, dealer principal of Marshall Ford in Philadelphia, Skip. 

It is more challenging to get and retail utilised autos, not only simply because supply is confined, but also simply because motor vehicles with affordable acquisition rates are tricky to obtain, Marshall explained. He observed his dealership is carrying some used automobiles in stock that had been purchased at wholesale for extra than their probable current retail price ranges.

“We’re selling [used] vehicles for some losses and also taking enormous losses if we go to auction,” he mentioned. 

With price tag strain up and earnings problems climbing, some dealers are exploring how to enhance their running efficiency, mentioned Stephen Dietrich, a companion with the Holland & Knight regulation business in Denver. He stated his dealer clientele are analyzing all prices as they enter 2023 and are currently being cautious about what they expend for. 

“They’re not tightening the belt,” Dietrich stated, “but they’re expressing we’re heading to check out the belt.” 

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59% of U.S. Lincoln dealers sign up to market EVs

Dealerships in the major 130 marketplaces must invest around $900,000 to install two DC quickly chargers and seven Level 2 chargers. All those in more compact marketplaces have to shell out about $500,000 for one DC charger and 4 Degree 2s. Dealerships that make the expense essential for their marketplace will be authorized to sell an endless amount of EVs.

Lincoln dealers who also have Ford stores must commit in every system to market both brands’ EVs.

The Lincoln plan will operate from late 2024 until finally 2026. One more enrollment interval will open up close to the close of 2026 for a application that begins in 2027.

Lincoln does not offer any EVs but has promised to start three globally by 2025 and include a fourth in 2026. Executives say they count on pretty much 90 p.c of Lincoln’s volume in North The usa to be electric by 2030.

Chris Poulos, chairman of the Lincoln Countrywide Vendor Council, told Automotive News the timing of the announcement makes perception.

“If you get started the course of action much too late, and then there is delays, you happen to be trapped and in a bad place,” stated Poulos, who is common supervisor of West Issue Lincoln in Houston. “I do assume there is certainly some thoughtfulness which is absent into the timing. It does seem like it is early, but I also can recognize what the pitfalls would be if they don’t start out early.”

Joe Hay, president of Jim Burke Ford-Lincoln in Bakersfield, Calif., mentioned opting into the Lincoln plan was a “reasonable final decision” for his store. He also enrolled in the top tier of Ford’s system, which demands an financial commitment of as significantly as $1.2 million.

“As a West Coast vendor, I see this as the price of entry,” he explained. “I will not know how you could be profitable in the retail ecosystem we find ourselves in in California without having being in the EV business.”

When substantially of the cost is predicted to go toward charging infrastructure, Hay explained the certification application also includes vital schooling for dealership staff.

“The ensuing two yrs we have offers us the time important not just to get the infrastructure suitable, but to get our groups trained, educated and prepared to discuss EV fluently,” Hay mentioned. “A great deal of the people we’re hoping to get to look at a Lincoln EV probably have owned Teslas and are on the lookout for a little something distinct, new and interesting. They’re professional. We have to be able to actually get the upcoming two years to gain a whole lot of floor and speak intelligently about the long term in a way we have not been carrying out these days.”

Even though he wishes Lincoln was selling EVs nowadays, Hay also mentioned rolling out demands now gives sellers a opportunity to put together.

“Lincoln put a ton of time into seeking to get this appropriate,” he explained. “We really don’t have

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Buick to present buyouts to all U.S. dealers

DETROIT — Buick will offer to get out any of its U.S. dealers who do not want to make the investments required as the brand transitions to an all-electrical lineup by the finish of this decade.

A spokeswoman for the brand verified the prepare to supply buyouts, which Duncan Aldred, vice president of world Buick and GMC, is outlining to sellers all through a virtual assembly Friday. The Wall Avenue Journal to start with reported the buyout program Friday, citing an interview with Aldred.

Buick had 1,963 U.S. dealerships at the begin of 2022, in accordance to Automotive News’ Dealer Census. Only 13 of all those had been standalone outlets — the majority have twin showrooms with GMC — so practically all dealers who acquire a buyout very likely would proceed with other General Motors models.

“Not all people automatically wishes to make that journey, dependent on wherever they’re situated or the degree of expenditure that the changeover will demand,” Aldred advised the Journal. “So if they want to exit the Buick franchise, then we will give them monetary guidance to do so.”

Buick does not system to introduce any new inner combustion automobiles after 2024, when its initially total-electric powered vehicle is scheduled to arrive. The manufacturer is reviving the Electra title for the planned EV lineup in mix with an alphanumeric code to distinguish the a variety of styles.

Bo Mandal, chairman of the Buick-GMC National Seller Council, mentioned Buick leaders offered the method to seller council associates a couple of months in the past in a assembly. Assistance amongst the supplier council was “unanimous,” he reported, after members vetted the buyout initiative with brand executives.
 
“When they talked about the Buick initiative, we ended up obvious on a single matter: No. 1, it is unquestionably, 100 percent, dealer decision and it’s voluntary,” claimed Mandal, who as CEO of Mandal Automotive Group in Biloxi, Skip., has 1 Buick-GMC dealership in his portfolio. “We would not have ever supported an agenda on this Buick initiative any other way. And to be entirely transparent, they did not current it in any other way, so we ended up very grateful for that.”
 
Mandal explained Friday’s assembly was the 1st time the complete Buick dealer community realized of the strategies. Buick leaders have not but shared facts about the quantity of expenditure that will be necessary of sellers who decide on to changeover to an all-EV lineup, he said, nor of the amount of the buyout that will be offered to dealers who opt for to exit the Buick franchise.
 
He reported Buick has not shared any distinct targets for the number of franchised dealerships it aims to have in the long term, adding: “I really don’t definitely think they have 1 in head.”
 
“If you want to be a supplier for the next 100 several years, then you can be a vendor for the future 100 many years,” Mandal reported. “If you do not believe you want to be a

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