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Description

Description

“The car parts aftermarket is showing signs of value growth helped by a shift towards premium products in the tyre sector and continued pressures on imports. Yet despite this the car sector is passing through a difficult period. Sluggish new and used sales have combined with a dip in confidence. Taken with the growing impact of the internet on retail sales, the market is in an uncertain period.”
– Neil Mason, Category Director - Retail

This Report will cover the following areas:

  • Interest in the internet is growing
  • Automotive sector continues to evolve
  • Premiumisation within the tyre sector

What's included

What's included

Table of contents

Table of contents

  1. Overview

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

          • The market
            • Revenues boosted by rising prices
              • Figure 1: UK car aftermarket, by value, 2014-24
            • Replacement tyres dominate market by value
              • Figure 2: Segmentation of the car aftermarket, percentage value, 2014-19
            • Independent garages dominate as the main channel for replacement parts
              • Figure 3: Aftermarket outlets for sales of replacement parts*, 2019
            • Steady expansion in the number of older cars
              • Figure 4: Age structure of the UK car parc in years, 2014-18
            • Companies and brands
              • Multinational suppliers dominate the market
                • Advertising and promotional spend is in decline
                  • Figure 5: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by category, 2015-18
                • The consumer
                  • Most vehicles in ownership are cars
                    • Figure 6: Vehicle ownership, September 2019
                  • Only a third of cars are under 3 years old
                    • Figure 7: Age of car owned, September 2019
                  • Most car owners are also responsible for maintenance of their vehicle
                    • Figure 8: Responsibility for maintenance and servicing, September 2019
                  • Regular servicing and problems with parts dominate reasons for replacement
                    • Figure 9: Reasons for replacement, September 2019
                  • In-store purchasing of replacement parts is popular
                    • Figure 10: Interest in in-store purchasing, September 2019
                  • Specialist automotive channels are preferred
                    • Figure 11: Likely to purchase in-store, September 2019
                  • Purchasing online has mixed appeal
                    • Figure 12: Interest in online purchasing, September 2019
                  • Automotive specialists are also preferred for those going online
                    • Figure 13: Likely to purchase online, September 2019
                  • Brexit price increases are a concern for over half of car owners
                    • Figure 14: Brexit and servicing and repair costs, September 2019
                  • What we think
                  • Issues and Insights

                    • Interest in the internet is growing
                      • The facts
                        • The implications
                          • Automotive sector continues to evolve
                            • The facts
                              • The implications
                                • Premiumisation within the tyre sector
                                  • The facts
                                    • The implications
                                    • The Market – What You Need to Know

                                      • Revenue growth hampered by quality improvements and longer service intervals
                                        • Inflation within the tyre sector helping to re-assert its importance
                                          • Replacement parts available from a number of locations
                                            • Automotive sector facing a number of pressures
                                            • Market Size and Forecast

                                              • Revenues continue to grow
                                                • Figure 15: UK car aftermarket, by value, 2014-24
                                                • Figure 16: UK car aftermarket*, by value, at current and constant prices, 2014-24
                                              • Slower tyre sales hamper its profile
                                                • Figure 17: Segmentation of the car aftermarket, by value, at current prices, 2014-19
                                              • Forecast methodology
                                              • Market Segmentation

                                                • Volumes stagnate while value uplifted by shift to 4x4 and premium
                                                  • Figure 18: Tyre sales, by value (at current prices) and volume, 2014-19
                                                • Average tyre prices approach £90
                                                  • Figure 19: Average tyre price (fitted), 2014-19
                                                • Premium and value tyres make gains against the budget sector
                                                  • Figure 20: Tyre sales, by price position (percentage volume), 2014-19
                                                • Summer tyres are the preferred replacement tyre
                                                  • Figure 21: Tyre sales, by type (volume), 2014-19
                                                • Part-worn tyre sales in excess of 4 million units per annum
                                                  • Other replacement parts continue to be affected by inflationary pressure
                                                    • Figure 22: Segmentation of the other replacement parts market, by value, at current prices, 2014-19
                                                  • Remanufactured sector is growing its presence in other parts market
                                                  • Channels to Market

                                                    • Independent garages continue to offer the most opportunities
                                                      • Figure 23: Aftermarket outlets for sales of replacement parts*, 2015, 2017 and 2019
                                                    • Independent garages represent the largest number of outlets
                                                      • Forecourt outlets are in steady decline
                                                        • Franchised dealers suffer fall in share of market
                                                          • Fast-fit operators are growing their share of the market
                                                            • Car accessory shop numbers also suffer steady decline
                                                              • Motor factor market also seeing consolidation
                                                                • The internet may account for 1 in 10 purchases
                                                                • Market Drivers

                                                                  • UK car parc now surpasses 31 million vehicles…
                                                                    • Figure 24: Number of licensed cars (Great Britain), million units, 1998-2018
                                                                  • …despite both new and used sales currently being in decline
                                                                    • Figure 25: New and used car market volumes, 2014-19
                                                                  • Trend towards owning older cars is increasing
                                                                    • Figure 26: Age structure of the UK car parc in years, 2014-18
                                                                  • Dual/multipurpose vehicles grow are currently best performing sector
                                                                    • Figure 27: New car registrations, by broad segment (volume share), 2013 and 2018
                                                                  • Brexit appears to have done little to impact on consumer confidence
                                                                    • Figure 28: Mintel financial confidence tracker, January 2017-August 2019
                                                                  • Sterling continues to perform poorly against the US Dollar and the euro
                                                                    • Figure 29: Sterling average monthly value versus US Dollar and euro, January 2016-July 2018
                                                                  • Owning a car is increasingly becoming expensive
                                                                    • Figure 30: Consumer expenditure on car purchasing, servicing and repair and motoring expenses, seasonally adjusted at current prices, 2014-18
                                                                  • Cars are becoming more reliable
                                                                    • Figure 31: Road vehicle testing scheme (MOT), selected reasons for failure, car tests, 2014/15-2017/18
                                                                  • Maintenance is the main reason for replacement
                                                                    • Figure 32: Reasons for replacement, 2018 and 2019
                                                                  • Trips taken are growing but not distance travelled
                                                                    • Figure 33: Trips, distance travelled and time taken, England, 2008-18
                                                                  • Growing percentage of households own two or more vehicles
                                                                    • Figure 34: Percentage of households with car availability, England, 2008-18
                                                                  • Used and refurbished market remains a threat to the market
                                                                  • Companies and Brands – What You Need to Know

                                                                    • Trading up by consumers benefits premium brands
                                                                      • Environmental benefits prove popular with innovators
                                                                        • Investment directed towards car parts is weakening
                                                                        • Market Share

                                                                          • Mixed progress for new entrants
                                                                            • Trading up by consumers benefits premium brands
                                                                              • Figure 35: UK – Tyres: company market share, by volume, 2014-18
                                                                            • ‘Other’ replacement parts
                                                                            • Launch Activity and Innovation

                                                                              • Volkswagen offers technology to reduce NOx emissions by up to 80%
                                                                                • Michelin offers a tyre without air
                                                                                  • Figure 36: Michelin UPTIS tyre
                                                                                • New battery technology promises over 600 miles between charges
                                                                                  • Aluminium brake discs offer environmental benefits
                                                                                    • Retrofit oil filter that can signal poor performance to the driver
                                                                                      • Lexus innovates with new shock absorber design
                                                                                      • Advertising and Marketing Activity

                                                                                        • Promotional investment in decline
                                                                                          • Figure 37: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, 2015-19
                                                                                        • Expenditure on passenger tyres is weakening
                                                                                          • Figure 38: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by category, 2015-19
                                                                                        • Digital assumes dominance in 2019
                                                                                          • Figure 39: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by media type, 2015-19
                                                                                        • Michelin leads the market
                                                                                          • Figure 40: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by advertiser, 2015-18
                                                                                        • Batteries and tyres dominate main campaigns
                                                                                          • Figure 41: Recorded above-the-line, online display and direct mail total advertising expenditure on car aftermarket products, by advertiser and campaign, 2018
                                                                                        • Nielsen Ad Intel coverage
                                                                                        • The Consumer – What You Need to Know

                                                                                          • Older adults are an important car ownership group
                                                                                            • Men and younger adults are more likely to own the newest cars
                                                                                              • Most car owners responsible for maintenance and servicing
                                                                                                • Regular maintenance/servicing and recommendations dominate reasons for parts replacement
                                                                                                  • In-store purchasing of replacement parts is popular
                                                                                                    • Online channels present a more mixed response
                                                                                                      • Over half of car owners concerned about no deal Brexit price increases
                                                                                                      • Vehicle Ownership

                                                                                                        • Cars dominate vehicle ownership
                                                                                                          • Figure 42: Vehicle ownership, September 2019
                                                                                                        • Older adults more likely to own a standard car
                                                                                                          • Young men and city dwellers show strong interest in hybrid and electric
                                                                                                            • Young adults most likely to own another type of vehicle
                                                                                                            • Age of Car Owned

                                                                                                              • Only a third of cars are 3 years old or less
                                                                                                                • Figure 43: Age of car owned, September 2019
                                                                                                              • Men are more likely to own newer cars
                                                                                                                • Age is another important factor impacting on the age of car owned
                                                                                                                  • Income and socio-economic status also impact on age of car owned
                                                                                                                    • Rising interest in the nearly new sector
                                                                                                                      • Figure 44: Age of car driven, 2015-19
                                                                                                                  • Responsibility for Maintenance and Servicing

                                                                                                                    • Most car owners take responsibility for vehicle maintenance
                                                                                                                      • Figure 45: Responsibility for maintenance and servicing, September 2019
                                                                                                                    • Men are more likely to have sole responsibility for maintenance and servicing
                                                                                                                      • Young adults are more likely to want to be jointly responsible
                                                                                                                      • Reasons for Replacement

                                                                                                                        • Problems and recommendations dominate reasons for replacement
                                                                                                                          • Figure 46: Reasons for replacement, September 2019
                                                                                                                        • Younger men are open to influence by others
                                                                                                                          • Replacement as part of maintenance and servicing is important for older adults
                                                                                                                            • Londoners are reluctant to replace when necessary
                                                                                                                              • Hybrid and electric car owners focus on preventative maintenance
                                                                                                                                • Owners of older cars are more likely to make distress purchases
                                                                                                                                  • Reasons for replacing parts – CHAID analysis
                                                                                                                                    • Older homeowners who are not working are an important group for replacing parts through regular maintenance and servicing
                                                                                                                                      • Figure 47: Car aftermarket – CHAID – Tree output, September 2019
                                                                                                                                      • Figure 48: Car aftermarket – CHAID – Table output, September 2019
                                                                                                                                  • Interest in In-store Purchasing

                                                                                                                                    • Strong interest in purchasing in-store
                                                                                                                                      • Figure 49: Interest in in-store purchasing, September 2019
                                                                                                                                    • In-store purchasing is popular with young adults
                                                                                                                                      • City residents are another lucrative market for retailers
                                                                                                                                        • Additional products and services are possible with wealthy households and young parents
                                                                                                                                          • Store purchasing popular with hybrid and electric car owners
                                                                                                                                            • Owners of new cars present a good market
                                                                                                                                              • Those with responsibility for their cars upkeep are more likely to purchase in-store
                                                                                                                                                • Specialist automotive channels are preferred for in-store purchasing
                                                                                                                                                  • Figure 50: Likely to purchase in-store, September 2019
                                                                                                                                                • Automotive outlets are popular with older adults
                                                                                                                                                  • Young men favour traditional retailers
                                                                                                                                                    • Automotive retailers can benefit from high earners
                                                                                                                                                      • New car owners are likely to focus purchasing on automotive retail specialist
                                                                                                                                                        • Automotive outlets record falling interest
                                                                                                                                                          • Figure 51: Likely to purchase in-store, 2018 and 2019
                                                                                                                                                      • Interest in Online Purchasing

                                                                                                                                                        • Purchasing online has mixed appeal
                                                                                                                                                          • Figure 52: Interest on online purchasing, September 2019
                                                                                                                                                        • Youngest adults have strongest desire to go online…
                                                                                                                                                          • …while interest from those in cities is also high
                                                                                                                                                            • Affluent adults are a lucrative market
                                                                                                                                                              • Hybrid and electric car owners should be a focus for online retailers…
                                                                                                                                                                • …as well as owners of the newest cars
                                                                                                                                                                  • Online popular with those who have maintenance responsibilities
                                                                                                                                                                    • Similar focus towards specialists for those going online
                                                                                                                                                                      • Figure 53: Likely to purchase online, September 2019
                                                                                                                                                                    • Older adults have strongest focus on particular outlets
                                                                                                                                                                      • General online retailers offering parts are favoured by the less affluent
                                                                                                                                                                        • Broadest appeal for websites come from those with 7-10 year old cars
                                                                                                                                                                          • Are auction sites falling out of favour?
                                                                                                                                                                            • Figure 54: Likely to purchase online, 2018 and 2019
                                                                                                                                                                        • Brexit and Its Implications

                                                                                                                                                                          • Over half are concerned about possible Brexit price increases
                                                                                                                                                                            • Figure 55: Brexit and servicing and repair costs, September 2019
                                                                                                                                                                          • Women and young have greatest concerns
                                                                                                                                                                            • City dwellers also have concerns
                                                                                                                                                                              • Hybrid and EV car owners are most concerned about price rises
                                                                                                                                                                                • Older car owners least concerned about Brexit risk
                                                                                                                                                                                • 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 56: Forecast of UK car aftermarket (value) – Best- and worst-case scenarios, 2019-24

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