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Car Aftermarket - UK - November 2017

“Rising prices are currently one of the key concerns for those in the car aftermarket. Stimulated as a result of the depreciation in Sterling following the EU Referendum in June 2016, most major replacement parts have suffered above-average price inflation. With a continuing lack of clarity on the shape of any future EU relationship, Mintel expects price to persist as a major concern for all of those operating in this sector.”
– Neil Mason, Head of Retail Research

This report looks at the following areas:

  • Tired with downtrading? Will the revival in demand for premium tyres be replicated elsewhere?
  • Young drivers appear a reluctant market when it comes to purchasing
  • Brexit worries seem to be causing a stir in the motor market

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Table of contents

  1. Overview

    • What you need to know
      • Products covered in this Report
      • Executive Summary

          • The market
            • Revenues continue to increase
              • Figure 1: UK Car aftermarket, by value, 2012-22
            • Tyres account for over half of the market
              • Figure 2: Segmentation of the car aftermarket, percentage value, 2012-17
            • Budget brands account for over half of tyre sales
              • Figure 3: Tyre segmentation for replacement car tyres, by volume percentage, 2017 (est)
            • Brakes and clutches are the most valuable other replacement parts
              • Figure 4: Segmentation of the other replacement parts market, by value, at current prices, 2017
            • Sterling’s recent depreciation has impacted prices
              • Figure 5: Month-end sterling average values versus US Dollar and euro, Jan 2016 to Sept 2017
            • Independent garages account for 41% of channels for replacement parts
              • Figure 6: Aftermarket outlets for sales of replacement parts*, 2017
            • Companies and brands
              • Tyre market supports a large number of suppliers
                • Figure 7: UK – Replacement tyres: company market share, by volume, 2017
              • Advertising expenditure shows evidence of recovery
                • Figure 8: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by category, 2013-16
              • The consumer
                • Majority of adults own a car
                  • Figure 9: Vehicle ownership, September 2017
                • Wide differences in age of cars in ownership
                  • Figure 10: Age of car, September 2017
                • Most car owners undertake maintenance themselves
                  • Figure 11: Responsibility for maintenance and servicing, September 2017
                • Tyres are the part that is most likely to be replaced
                  • Figure 12: Purchase of replacement parts, September 2017
                • Regular maintenance and servicing the main reason for replacing parts
                  • Figure 13: Reasons for replacement, September 2017
                • Automotive retail stores are the most popular outlet for purchasing parts
                  • Figure 14: Purchase channels, September 2017
                • Half of car owners are concerned about post-Brexit price rises
                  • Figure 15: Implications of Brexit, September 2017
                • What we think
                • Issues and Insights

                  • Tired with downtrading? Will the revival in demand for premium tyres be replicated elsewhere?
                    • The facts
                      • The implications
                        • Young drivers appear a reluctant market when it comes to purchasing
                          • The facts
                            • The implications
                              • Brexit worries seem to be causing a stir in the motor market
                                • The facts
                                  • The implications
                                  • The Market – What You Need to Know

                                    • Market value boosted by rising prices
                                      • Tyres benefit from resurgent interest in the premium sector
                                        • Price rises help stimulate other replacement parts
                                          • Independent garages dominate despite rising dealer and fast-fit competition
                                            • UK car sector expands but also ages
                                              • Brexit concerns bring short-term problems
                                              • Market Size and Forecast

                                                • Rising prices are evident across all areas of the market
                                                    • Figure 16: UK Car aftermarket, by value, 2012-22
                                                    • Figure 17: UK Car aftermarket*, by value, at current and constant prices, 2012-22
                                                  • Tyres increase their share of the market
                                                    • Figure 18: Segmentation of the car aftermarket, by value, at current prices, 2012-17
                                                  • Forecast methodology
                                                  • Market Segmentation

                                                    • Shift to premium and devaluation of Sterling help boost tyre value
                                                      • Figure 19: Tyre sales, by value (at current prices) and volume, 2012-17
                                                    • Value sector increasingly squeezed as manufacturers invest in premium and budget lines
                                                      • Figure 20: Tyre segmentation for replacement car tyres, by volume percentage, 2012-17
                                                    • Summer tyres continue to dominate despite interest in all-season
                                                      • Figure 21: Winter/all-season tyres, 2012-17
                                                    • Tyre market supports a sizeable part-worn sector
                                                      • Other replacement parts have also been affected by a jump in prices
                                                        • Figure 22: Segmentation of the other replacement parts market, by value, at current prices, 2012-17
                                                      • Re-manufactured sector is growing its presence in other parts market
                                                      • Channels to Market

                                                        • Independent garages dominate the aftermarket
                                                          • Figure 23: Aftermarket outlets for sales of replacement parts *, 2013, 2015 and 2017
                                                        • Independent garages dominate
                                                          • Forecourt outlets in decline
                                                            • Franchised dealers benefit from stability
                                                              • Fast-fit network also showing signs of stability
                                                                • Car accessory shops continue their decline
                                                                  • Motor factor market seeing consolidation
                                                                    • The internet expands its presence
                                                                    • Market Drivers

                                                                      • Car market stagnates as new sales fall away
                                                                        • Figure 24: New and used car market volumes, 2012-17
                                                                      • UK car parc surpasses 30 million vehicles
                                                                        • Figure 25: Number of licensed cars (Great Britain), 1995-2016
                                                                      • Growth at both ends of the market
                                                                        • Figure 26: Age structure of the car parc in years, 2012-16
                                                                      • Depreciation in Sterling following Brexit hits costs …
                                                                        • Figure 27: Month-end Sterling average values versus US Dollar and euro, Jan 2016 to Sept 2017
                                                                      • … while concerns about leaving the EU have also intensified
                                                                        • Figure 28: Level of concern over the impact of the EU referendum, July 2016-June 2017
                                                                      • Servicing and repair expenditure records increase during 2016
                                                                        • Figure 29: Consumer expenditure on car purchasing, servicing and repair and motoring expenses, seasonally adjusted at current prices, 2012-16
                                                                      • Petrol dominates as diesel’s popularity stalls
                                                                        • Figure 30: Sales of new cars by fuel type, 2012-17
                                                                      • Number of trips taken by individuals overall is in decline
                                                                        • Figure 31: Trips, distance travelled and time taken, 2006-16
                                                                      • Multiple car ownership creeps upward
                                                                        • Figure 32: Percentage of households with car availability, in England, 2006-16
                                                                      • Tyres are the part most likely to be replaced on a 12-month basis
                                                                        • Figure 33: Fitting/purchasing of replacement parts in the last 12 months, September 2017
                                                                      • Lighting and signalling are a key reason for MOT failure
                                                                        • Figure 34: Road vehicle testing scheme (MOT), selected reasons for failure, car tests, 2013/14-2015/16
                                                                      • Regular maintenance is an important factor in purchasing
                                                                      • Companies and Brands – What You Need to Know

                                                                        • Complexity of supply market is illustrated by the tyre sector
                                                                          • Acquisition activity high during 2017
                                                                            • Innovation comes in a variety of forms
                                                                              • Promotional expenditure on an upward trend
                                                                              • Market Share

                                                                                • Tyre sector shows signs of consolidation
                                                                                  • Premium marques record an improvement in share during 2016
                                                                                    • Figure 35: UK – Tyres: company market share, by volume, 2014-16
                                                                                  • ‘Other’ replacement parts
                                                                                  • Competitive Strategies

                                                                                      • All change in the parts distribution market
                                                                                        • Tyre distributor subject to foreign takeover
                                                                                          • Peugeot invests in loyalty to maintain market presence
                                                                                            • Re-brand follows merger
                                                                                              • New service portal to promote market presence and drive sales
                                                                                                • Brexit uncertainty affects IPO
                                                                                                  • Picking up assets
                                                                                                  • Launch Activity and Innovation

                                                                                                    • Combined wheel and tyre under development
                                                                                                      • Improved drive system unveiled
                                                                                                        • Quieter winter tyres on the way
                                                                                                          • Intelligent lighting links car and home
                                                                                                            • New battery technology promises longer range and faster charging
                                                                                                            • Advertising and Marketing Activity

                                                                                                              • Expenditure falls back after peaking in 2015
                                                                                                                • Figure 36: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, 2013-17
                                                                                                              • Tyres benefit from growth in their share of expenditure
                                                                                                                • Figure 37: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by category, 2013-17
                                                                                                              • Television expenditure strengthens as press investment declines
                                                                                                                • Figure 38: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by media type, 2013-16
                                                                                                              • Michelin dominates as Halfords builds investment
                                                                                                                • Figure 39: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, 2013-16
                                                                                                              • Tyres dominate expenditure
                                                                                                                • Figure 40: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by campaign, 2013-16
                                                                                                              • Nielsen Ad Intel coverage
                                                                                                              • The Consumer – What You Need to Know

                                                                                                                • Cars the most popular form of vehicle in ownership
                                                                                                                  • Over a fifth of car owners have a vehicle over 10 years old
                                                                                                                    • Most car owners are responsible for maintenance
                                                                                                                      • Tyres are the part that is most likely to have been replaced
                                                                                                                        • Regular maintenance/service and problem awareness are the two main reasons for replacing a part
                                                                                                                          • Automotive stores and websites are especially popular for replacement parts
                                                                                                                            • Brexit price rises for maintenance and servicing are a concern for around half of car owners
                                                                                                                            • Vehicle Ownership

                                                                                                                              • More owners are likely to purchase their car used
                                                                                                                                • Figure 41: Vehicle ownership, September 2017
                                                                                                                              • New car ownership records strong differences
                                                                                                                                • Several groups are likely to not own a motor vehicle
                                                                                                                                  • Cars may well be benefiting from the rise in vehicle ownership
                                                                                                                                    • Figure 42: Vehicle ownership, 2015-17
                                                                                                                                • Age of Car

                                                                                                                                  • Sharp contrasts in age of cars that are being driven
                                                                                                                                    • Figure 43: Age of car, September 2017
                                                                                                                                  • Older adults prefer older cars
                                                                                                                                    • Socio-economic status also impacts on age of car
                                                                                                                                      • Urban dwellers prefer newer cars
                                                                                                                                        • Newer cars account for a growing share of vehicles
                                                                                                                                          • Figure 44: Age of car driven, 2014-2017
                                                                                                                                      • Responsibility for Maintenance and Servicing

                                                                                                                                        • Most car owners have responsibility for maintenance and servicing
                                                                                                                                          • Figure 45: Responsibility for maintenance and servicing, September 2017
                                                                                                                                        • Women are more likely to rely on assistance from others
                                                                                                                                          • One in 10 17-24-year-olds rely on someone else
                                                                                                                                            • Low income car owners are more likely to be responsible …
                                                                                                                                              • … with the opposite the case for rural drivers
                                                                                                                                              • Purchase of Replacement Parts

                                                                                                                                                • Tyres are the part most likely to have been purchased
                                                                                                                                                  • Figure 46: Purchase of replacement parts, September 2017
                                                                                                                                                • Men are more likely to have purchased parts
                                                                                                                                                  • Young adults are an important buying group
                                                                                                                                                    • Wealth appears to play a role in parts replacement
                                                                                                                                                      • Regional variations add to the complexity of the market
                                                                                                                                                        • Used car owners are more likely to have replaced parts recently
                                                                                                                                                        • Reasons for Replacement

                                                                                                                                                          • Regular servicing and awareness of problem lead reasons for replacement
                                                                                                                                                            • Figure 47: Reasons for replacement, September 2017
                                                                                                                                                          • Younger adults are less likely to plan ahead …
                                                                                                                                                            • … with this also the case for urban residents
                                                                                                                                                              • Parts failure as a reason for replacement falls sharply
                                                                                                                                                                • Figure 48: Reasons for replacement, 2016 and 2017
                                                                                                                                                              • New car owners are more likely to replace parts for discretionary reasons
                                                                                                                                                              • Purchase Channels

                                                                                                                                                                • Automotive retail stores dominate purchasing
                                                                                                                                                                  • Figure 49: Purchase channels, September 2017
                                                                                                                                                                • Automotive outlets popular with young adults
                                                                                                                                                                  • Indirect purchasing via third parties is popular with older adults
                                                                                                                                                                    • Wealthier car owners show interest in use of a variety of retail channels
                                                                                                                                                                      • Use of the internet varies depending on car age
                                                                                                                                                                        • Automotive retail stores and third parties are preferred in emergencies
                                                                                                                                                                          • Young adults and those on low incomes focus on a single sales channel
                                                                                                                                                                          • Implications of Brexit

                                                                                                                                                                            • Increased costs are a concern for around half of car owners
                                                                                                                                                                              • Figure 50: Implications of Brexit, September 2017
                                                                                                                                                                            • Young adults, families and larger households appear the most concerned
                                                                                                                                                                              • Women are also more concerned than men
                                                                                                                                                                                • Income is not a major factor in affecting concern
                                                                                                                                                                                  • Owners of older cars appear less bothered about potential price increase
                                                                                                                                                                                    • Car owners who are jointly responsible for servicing and maintenance have greater worries
                                                                                                                                                                                    • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                                                                                                                      • Data sources
                                                                                                                                                                                        • Exclusions
                                                                                                                                                                                          • Abbreviations
                                                                                                                                                                                            • Consumer research methodology
                                                                                                                                                                                            • Appendix – Market Size and Forecast

                                                                                                                                                                                              • Market sizing and segment performance
                                                                                                                                                                                                • Forecast methodology
                                                                                                                                                                                                  • Forecast data
                                                                                                                                                                                                    • Figure 51: Forecast of UK car aftermarket (value) – Best- and worst-case scenarios, 2017-22

                                                                                                                                                                                                Companies Covered

                                                                                                                                                                                                To learn more about the companies covered in this report please contact us.

                                                                                                                                                                                                Car Aftermarket - UK - November 2017

                                                                                                                                                                                                US $2,648.76 (Excl.Tax)