According to the late-2021 sector appraisal study of the OSS (The Turkish Automotive Aftermarket Association) last year, compared to 2020, there was an average increase of 43.5% in sales. Although average sales are expected to grow by 23.5% this year, the percentage of those planning to invest over the same period has fallen to 38.2% on average. And while last year’s most important issues were exchange rate volatility and supply problems (check our blog posts “What Are the Clouds that Make Up the Automotive Storm?”, and “The hidden war on the automotive front”), freight/delivery costs continued to be on the distributor’s agenda. Evaluating the past year specifically for the aftermarket, OSS Association President Zia Ozalp said: “Demands and sales continue with even higher expectations.” “We expect our industry to grow above inflation this year,” he continued.
Interesting fact: Automotive Brake Pads Market to hit $4 billion by 2028, Says Global Market Insights Inc. The rising importance of vehicle safety solutions owing to the rising number of road accidents across the globe is anticipated to propel the market share over the study timeframe. The increasing sales of commercial vehicles and the growing logistics industry are likely to drive the development of automotive brake systems.*
Nearly 22.5 percent increase in expectations!
The OSS study also sought expectations for the first quarter of this year in domestic sales. In this context, it was revealed that participants expect an average increase of nearly 7% compared to the last quarter of 2021. Participants said they expect an average 22.5% increase in domestic sales in the first quarter of 2022 compared to the first quarter of last year. In addition, members were asked how much domestic sales are expected to increase this year compared to 2021. Participants also said they expect an increase of nearly 23.5%.
The most important issues: mobility in exchange rates and supply problems!
The study also revealed the problems it had last year in the sector. While almost all participants saw exchange rate fluctuations as one of the most important problems, 58% of respondents stressed that cargo/delivery price problems were also among the most important. The problem with the loss of motivation of employees due to the pandemic decreased compared to the previous year. In addition, it was revealed that customs problems have increased compared to previous years.
Interesting fact: The Global Automotive Aftermarket Market is projected to reach USD 518.04 billion in 2027. The market growth is expected to increase through the digitalisation of automobile repair and parts manufacturing, along with advanced technological incorporations of the production of automotive aftermarket components. (Emergen Research’s latest document, titled ‘Global Automotive Aftermarket Market – Forecast to 2027’)
Almost 25% export growth!
In the last quarter of 2021, exports increased by an average of 14%. In the same period, there was an average of 25% increase in exports compared to the last quarter of 2020. Emergen Research has segmented the global Automotive Aftermarket, top findings and their shared revenue through the years we shared below:
Replacement Part Outlook (Revenue: USD Billion; 2017-2027)
Lighting & Electronic Components
Certification Outlook (Revenue: USD Billion; 2017-2027)
Service Channel Outlook (Revenue: USD Billion; 2017-2027)
Distribution Channel Outlook (Revenue: USD Billion; 2017-2027)
Wholesalers & Distributors
Market Segmentation by Application
Sector growth forecast for 2022!
OSS Association Chairman Zia Ozalp, who assessed last year’s automotive aftermarket, stressed that the pandemic had changed many habits in the automotive aftermarket and reorganised business models. As the use of individual vehicles increased during the pandemic, it led to the following dynamic in the sector: “However, problems with imports and customs due to the pandemic and taxation will continue to risk the availability of the necessary parts.” Ozalp continued: “There was an increase in sales in the sector in 2021 compared to 2020. Demand and sales continue with high expectations. We expect our industry to grow above inflation this year.”
Top Key Players in the Global Automotive Aftermarket:
Advance Auto Parts
Alibaba Group Holding
Genuine Parts Company
* Click to get a sample copy of “Automotive Aftermarket E-retailing Market” by MarketInsightsReports
*Click to get a sample copy of “Automotive Brake Pads Market” by Global Market Insights
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