Aftermarket showed strong growth in 2022

by | Apr 19, 2023 | 0 comments

At the end of 2022, key market indicators readily displayed the strong state of the aftermarket in Canada.

“The Canadian automotive aftermarket put forward a strong performance in 2022,” commented Andrew King, Managing Partner at DAC, “despite shortages and price spikes that continue to impact the market.”

Retail sales figures for the automotive parts, accessories, and tire stores category showed an increase of 10.5% for 2022 compared to the year previous, indicating strong dollar sales.

In line with this, employment in the aftermarket grew, with parts and accessories stores seeing 5.4% more jobs in December 2022 when compared to December 2021, and automotive repair and maintenance similarly adding 4.6% at the tail end of 2022.

automotive aftermarket scorecard

However, parts shortages were widespread throughout the year, and this drove the prices of parts and repairs up.

The Consumer Price Index data showed an increase of 8.6% for passenger vehicle parts, accessories, and supplies for December 2022 compared to the same month in 2021.

Similarly, the CPI for passenger vehicle maintenance and repair services increased 5.6% in the same time. Gasoline consumption—as a surrogate for vehicle usage—remained fairly steady with just a 1.9% decrease in 2022 overall, unsurprising given the improved efficiencies of the fleet.

Sentiment from within the aftermarket was also largely positive.

Early in the year, DAC reached out to its colleagues at the Automotive Aftermarket Retailers of Ontario (AARO). When members were asked about their outlook for 2023, 49.1% indicated an expectation of 1-10% sales growth with a further 12.0% indicating an expectation for sales growth of 11%+.

All expectations point to another strong year for the Canadian aftermarket in 2023, barring severe wider economic uncertainty.

DAC provides detailed forecasts for more than 25 specific aftermarket product areas and for the future structure of the Canadian light vehicle fleet.

For more information, visit DesRosiers Automotive Consultants


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