By Dennis DesRosiers
(CHATHAM, ON) – AIA Canada’s 2011 Canadian Automotive Aftermarket Demand Study (prepared by DesRosiers Automotive Consultants) has been released. It indicates that Canadians are underperforming close to $12 Billion in vehicle maintenance and repairs. The report builds on AIA Canada’s groundbreaking 2009 report “Hidden Potential Unmasked,” also prepared by DesRosiers Automotive Consultants.
Vehicle owners across Canada are delaying essential vehicle maintenance and repairs. This ongoing issue, identified the Hidden Potential Unmasked report, grows in importance every year along with the overall size of the Canadian vehicle parc. Canadian Automotive Aftermarket Demand Study results detail true potential aftermarket demand at $30.40 billion, while actual services performed amount to only $18.49 billion. A significant difference of $11.91 billion indicates that a large degree of vehicle repair is being neglected or delayed by consumers.
The Canadian Automotive Aftermarket Demand Study outlines latent opportunities at every level of the supply chain. With an overview of Canada as well as breakdowns by region and vehicle age, the report is a clear map to where vehicle maintenance should be occurring. An in-depth look at eight product categories highlights underperformed maintenance in such categories as brakes, shocks/struts and coolant. “There exists significant additional opportunity each time a customer brings in their vehicle for servicing, and if attained, the benefits would echo through each layer of the automotive aftermarket supply chain,” states Marc Brazeau, President of AIA Canada. “If all Canadians were to practice the repair and maintenance habits of the most diligent vehicle maintainers, an additional $11.91 billion would flow into all levels of the supply chain, from the shop to the manufacturer. The question for the industry will be how to take advantage of this opportunity for growth within the existing customer base.”
AIA is giving its members access to the full report at no cost in order to help them understand the benefits of promoting aftermarket repair and maintenance. Proactive service behaviour can be profitable to the industry and can also contribute to improved road safety, environmental friendliness and vehicle reliability.