Cars and light trucks four years and older now generate over 96% of aftermarket product and service volume
Fort Wayne, Ind.—A new name has been coined — “Aftermarket Vehicles” — to describe cars and light trucks four years and older that creates a new subset for the aftermarket sweet spot range, which is widely considered to be vehicles between 6-12 years old. Aftermarket Vehicles, states Lang Marketing’s latest Aftermarket iReport, represent approximately 80% of total light vehicles in operation (VIO), but they generate over 96% of aftermarket product and service volume (excluding accessories and tires).
Lang argues that low new vehicle sales have created “substantial changes” in the population growth, VIO share, nameplate mix, and average age of vehicles on U.S. roads. And this, accordingly, will boost aftermarket product volume in the coming years.
Here’s more of what Lang states about the evolving sweet spot.
Vehicle Age Groups Not Equal in Aftermarket Sales
“Aftermarket Vehicles” are cars and light trucks that are at least four years old. They generate over 96% of total light vehicle aftermarket product and service volume (excluding accessories and tires) despite representing a much smaller share of the nation’s light vehicles in operation (VIO).
Aftermarket Vehicles are significantly different from other cars and light trucks in operation across a wide range of automotive factors, including their population growth rates, VIO share, nameplate mix, average age, and other factors.
Aftermarket Vehicles Are Different
Aftermarket Vehicles differ from the overall vehicle population, just as the aftermarket differs from the OE market. Key metrics of Aftermarket Vehicles have significant implications for aftermarket product and service sales and can help people both inside and outside the automotive industry to understand more fully the dynamics of aftermarket growth in the U.S. and how the increasing Aftermarket Vehicle population influences it.
Aftermarket Vehicle Population Growth
Aftermarket Vehicles are increasing at a faster pace than the total vehicle population. Over 27 million Aftermarket Vehicles will have been added to the nation’s VIO between 2017 and 2024. This represents an annual increase of about 1.8%, which is 80% greater than the 1.0% yearly growth of total vehicles in operation.
Aftermarket Vehicles will continue to grow faster than the nation’s VIO through 2026 (and possibly beyond), as annual new vehicle sales continue below the record-high levels of 2015 to 2019 and the scrappage rates of older vehicles remain relatively low.
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