From 2021 through 2023, the aftermarket product volume increased with only a 1% gain in the nation’s VIO
Fort Wayne, Ind.—Light vehicle product sales climbed by over $28 billion at user-price between 2013 and 2023. This product increase was generated by the growth of vehicles in operation (VIO) and greater annual product use by the average car and light truck on U.S. roads, states the latest Lang Aftermarket iReport.
“Following the record-high decline in aftermarket product sales during 2020, product use per vehicle soared,” reports the analysis. “From 2021 through 2023, more than $19 billion was added to aftermarket product volume, with only a 1% gain in the nation’s VIO.”
The following are key takeaways from Lang’s iReport.
Annual Product Use Per Vehicle
Two factors largely determine aftermarket product sales: the number of cars and light trucks in operation and aftermarket product use per vehicle. Between 2013 and 2023, these key factors affected light vehicle aftermarket growth differently.
Changing Growth Dynamics
Following the economic downturn of 2008, the nation’s vehicles in operation (VIO) recorded minimal growth. Between 2009 and 2013, virtually all aftermarket product expansion was due to the growing product use per vehicle, driven mainly by the aging car and light truck population. Aftermarket growth dynamics changed over the next six years (2013 to 2019) as VIO expansion reignited.
Growth 2013 to 2019
VIO growth and the increasing use of products by light vehicles created the aftermarket product expansion between 2013 and 2019. Over these six years, the VIO climbed by approximately 12%, while the average product sales per light vehicle increased by 5%.
Without the increase in aftermarket product use per vehicle, the light vehicle aftermarket product growth during these years would have been considerably lower.
COVID-19 Impact
The outbreak of COVID-19 triggered an “unprecedented” decrease in 2020 product use per light vehicle. In the previous 10 years, the typical car and light truck in the U.S. increased its aftermarket product use by nearly $35, just short of a 10% gain. In 2020, the average product use per vehicle fell by 8%, lower than in 2013.
2020 Product Use for Cars and Light Trucks
Both cars and light trucks averaged lower product use in 2020 per vehicle, wiping out gains in vehicle product annual use over nearly 10 years. However, the 2020 auto parts decrease was not equally distributed among cars and light trucks. Cars suffered a greater product percentage loss than light trucks, over 10% versus about 7%, respectively.
Rebound: 2021 to 2023
The “historic” increase in aftermarket product volume in the three years following the 2020 decrease was generated almost entirely by a sharp gain in average product use per light vehicle. The nation’s VIO climbed only 1% from 2020 to 2023. Nevertheless, aftermarket product volume increased by more than 17%, pumped up by product use per vehicle, which increased and reached a record-high of $444 at user-price.
Cars versus light trucks
Product use per vehicle was much greater last year among light trucks than cars. Light trucks rose $22 in average product use in 2023 at user-price over the previous year, setting a record-high use level that surpassed pre-COVID volume.
The average passenger car climbed about $7 more in products during 2023, less than one-third the annual product gain of the average light truck.
Light Trucks Versus Cars
The average light truck in the U.S. accounted for 50% more in 2023 product volume than the typical passenger car. Strong product use by light trucks reflects their concentration in the sweet-spot vehicle age categories (with high rates of aftermarket product use) and their greater consumption of accessories per vehicle compared to passenger cars.
Lang Marketing expects that these differences in annual product use between light trucks and passenger cars will continue for the foreseeable future, stimulating light vehicle aftermarket growth.
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