Aftermarket vs Dealers: Shifting Market Dynamics for Vehicle Maintenance Services

The automotive service industry has witnessed a significant divergence in market share between independent aftermarket facilities and dealerships, particularly concerning vehicles aged four to twelve years. The latest JD Power Canada Customer Service Index – Long Term Study reveals that the age and mileage of vehicles heavily influence where brake jobs are performed. Furthermore, regional differences play a crucial role in shaping this market landscape. Overall, the study highlights the varying performance of the aftermarket sector across different regions and vehicle age groups.
Age and Mileage Influence on Brake Job Preferences
The relationship between vehicle age and customer preference for brake repair services is profound. For vehicles between four and seven years old, dealerships dominate with a larger share of the market, while for older vehicles, the independent aftermarket gains prominence. This shift indicates that as vehicles age, consumers increasingly turn to aftermarket providers for maintenance services.
In detail, the market dynamics reveal a 20% increase in the aftermarket's market share for vehicles eight to twelve years old compared to younger models. This trend suggests that vehicle longevity plays a critical role in consumer decision-making. Younger vehicles tend to retain dealership loyalty, whereas older vehicles see a surge in aftermarket interest. The study underscores that mileage also significantly impacts this preference, with higher mileage vehicles more likely to opt for aftermarket services due to cost-effectiveness and convenience.
Regional Disparities in Aftermarket Performance
Regional variations significantly impact the competitive landscape between dealerships and the aftermarket sector. Nationally, dealerships hold a slight edge over the aftermarket, but this balance shifts notably across different parts of Canada. In Western Canada, dealerships maintain a stronger presence, while Eastern Canada sees a more balanced competition.
Despite the overall lower market share in Western Canada, branded aftermarket outlets still command a respectable 13% share, indicating resilience in this segment. Interestingly, independent aftermarket service centers lead the market regardless of region or vehicle age. This dominance highlights the adaptability and reliability of independent providers. The 7th Annual Aftermarket Intelligence issue provides comprehensive insights into these trends, offering valuable data on market share, average billing, and service categories such as brakes, batteries, and transmissions. These findings serve as essential tools for professionals in Canada’s automotive aftermarket, ensuring they stay informed about the evolving market dynamics.