LONDON, June 20, 2017 /PRNewswire/ -- The United Kingdom (UK) automotive aftermarket is set to grow. A rise in innovative business models and services such as e-retailing, telematics and connected car systems, personal contract purchase (PCP) financing, service aggregators, and e-stores are factors propelling demand and creating unique value for customers in a price sensitive market. To capitalise on the growing ageing vehicle market, service chains should focus on highly replaceable parts associated with top brands while independent garages should develop a better understanding of servicing top brands.
"In a fiercely competitive evolving ecosystem, independent aftermarket (IAM) players and franchises must harness available opportunities such as developing mutually beneficial partnerships and tie ups with PCP agencies, tyre companies, telematics and connected car manufacturers to offer better discounts, customer value, and ensure availability of parts on time," said Frost & Sullivan Mobility Program Manager Anuj Monga.
UK Automotive Aftermarket, Forecast to 2023, recent research from Frost & Sullivan's Automotive & Transportation Growth Partnership Subscription, provides an overview of the UK automotive aftermarket, including market size and structure. Key trends, growth prospects, and developments are assessed including vehicles in operation (VIO), vehicle ownership, e-retailing, and service providers. New business models and profiles of major aftermarket players such as Euro Car Parts, Parts Alliance, Kwik Fit, and The Rapid Group are covered.
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UK automotive aftermarket developments and trends encouraging growth include:
- High percentage of old car sales requiring ongoing maintaining to pass yearly ministry of transportation (MOT) requirements;
- Dominance of IAM caused by a rise in average vehicle age and relatively old VIO;
- Increased growth in replacement and requirement frequency of parts like tyres, lights, brakes, suspension, parking aids, wipers, and wheel hubs due to age of vehicle, and user interest in new technologies;
- Demand for PCP finance owing to low monthly repayments, discounts on fleets, and guaranteed future resale of vehicle if conditions of contract are maintained;
- High penetration of e-retail for automotive parts and services;
- Service aggregators playing a major role in customer choice of service center because of a price sensitive market; and
- Rise in original equipment manufacturer e-stores attributed to strong penetration of internet, smart phone usage, and discounted available on online retail.
"While independent repairs still represent a large majority of sales and service points within the IAM, growing complexities in vehicle functionality and a lack of available skill set are a key market challenge," noted Monga. "Investing in innovative training methods, tools, equipment, and assistive technologies will be critical to long-term business sustainability."
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UK Automotive Aftermarket, Forecast to 2023
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SOURCE Frost & Sullivan