Connected vehicles are driving new economic models for automakers, and most see tremendous revenue potential and consumer value in leveraging driver and vehicle data to offer mobility services, according to the 2017 KPMG Global Automotive Executive Study.
Several program distribution groups said that in 2016 the market continued to present challenges due to changes brought about by ongoing industry consolidation. As the competitive landscape continues to change, program groups are looking for new and different ways to enhance brand value.
Lowest price was the most often selected reason when survey respondents were asked the top five reasons that they purchased a particular auto part or product. Following in second place was brand name and recommendation finished third.
New vehicle sales are expected to reach nearly 90 million units globally this year, according to IHS Markit, and global vehicles in operation will exceed nearly 1.4 billion vehicles by 2021, with two billion vehicles in operation expected by 2040.
Automotive accessories contribute billions in revenue to the auto industry. In fact, half of new auto buyers install $250+ worth of accessories, with corresponding average per vehicle spending near $1,000, according to Foresight Research.
The movement toward lower-priced products selling in place of more premium products is evident when diving into the aftermarket industry’s top three category trend drivers – batteries, motor oil, and wiper blades – which represent over 43 percent of total industry volume.
For the second consecutive year, collision repairers say they feel less insurer influence when buying replacement automotive parts, according to the Aftermarket Business World 2016 Collision Shop Study.
Chris Sutton, vice president of U.S. automotive retail at J.D. Power, spoke to Aftermarket Business World about the company's 2016 CSI study, which shows satisfaction rates for recall-related repairs declined this year for the first time in six years.