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More than $26 billion in foreign nameplate parts and service will bolster aftermarket growth

The segment will generate all light vehicle DIFM aftermarket expansion from 2021-2024, according to new report

Fort Wayne, Ind.—The Do-It-For-Me (DIFM) foreign nameplate aftermarket will increase by more than $26 billion in parts and service at user-price during 2021 through 2024. Foreign nameplates will generate all light vehicle DIFM aftermarket expansion over that four-year span, according to the new “Lang Aftermarket Annual” analysis.

“However, not all major repair outlet groups will share equally in this massive increase of foreign nameplate DIFM business,” stated the report. “Independent (non-Dealer) repair shops must recognize the dynamic changes that are underway in the repair market and position themselves to battle effectively for this unprecedented foreign nameplate DIFM market growth.”

Here are a few takeaways from the analysis.

Stronger Dealer Competition
The 2008 economic downturn caused many Dealers to re-evaluate their position in the changing DIFM market.

As a result, Dealers have become much more aggressive in competing for light vehicle repair. The 2020 and 2021 reductions in new vehicle sales have further sharpened the focus of many Dealers on their service bay business.

The extended new vehicle ownership cycle (buyers are holding onto new vehicles for an average of more than 6 years) is providing Dealers with a growing opportunity to establish a strong repair relationship with new vehicle buyers, a majority of whom select foreign nameplates.

Foreign Specialists: Fastest Growth
Foreign Specialists (outlets focusing on the repair of foreign nameplates) will achieve the highest product growth rate in the foreign nameplate DIFM market during 2021 through 2024. This reflects their concentration on foreign nameplates and the high ratings that consumers give to Foreign Specialists for their expertise in foreign vehicle repair.

Repair Specialists: Largest Dollar Gain
Repair Specialists (outlets focusing on a limited menu of repair jobs) are well positioned to effectively compete for the repair jobs in which they specialize.

Lang Marketing projects that Repair Specialists will gain the largest dollar portion of the expanding foreign nameplate DIFM market.

Service Stations & Garages: Big Challenges
Service Stations & Garages operate the largest number of repair outlets, but they face the greatest challenges among leading independent (non-Dealer) repair groups in competing for the fast-growing foreign nameplate DIFM market.

Lacking the focus of Foreign Specialists and Repair Specialists, Service Stations & Garages are repair generalists, and they must acquire the training, tools, and repair data to effectively compete in the rapidly expanding and diverse foreign nameplate DIFM market.

Competitive Advantages of Larger Outlets
Larger Service Stations & Garages have an above-average share of their business represented by foreign nameplates, and they are best positioned (within this outlet group) to capture a growing share of the foreign nameplate DIFM surge.

Greater Success and Survival
This will result in a growing disparity of business success (and survival) among Service Stations & Garages based on their repair volume, which will be a significant factor in determining their ability to adapt to the changing nameplate mix within the light vehicle DIFM market.

Over 65 percent of DIFM Growth
These three outlet groups (Foreign Specialists, Repair Specialists, and Service Stations & Garages) will generate over two-thirds of the more than $26 billion DIFM growth of foreign nameplate Parts and Purchased Service between 2021 and 2024.

Dealers Will Expand Their DIFM Share
Led by foreign nameplate operations, Dealers will expand their share of the DIFM market. By 2024, Dealers will capture a significantly greater share of DIFM Parts and Purchased Service volume than they rang up last year.

Brand Impact of Growing Foreign Nameplate DIFM
The foreign nameplate domination of DIFM market growth during 2021 through 2024 will have important implications for the strength of brands across the DIFM market.

Among the five major types of automotive parts brands, OE-Supplier, OE, and Foreign brands will increase their aftermarket parts sales in the fast-growing foreign nameplate DIFM aftermarket.

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