Performance brakes remained one of the most popular vehicle modifications in 2008, but the nation's economic downturn threatens to reduce consumer spending on such parts in the new year.
Fourteen percent of vehicle owners surveyed by Frost & Sullivan last year said they had added a non-standard part or upgrade within the past 12 months to the brakes of at least one vehicle they own. That was down from 16 percent in 2006 who said they had modified their brakes.
Frost & Sullivan surveyed 1,000 U.S. vehicle owners last year to determine which types of modifications are popular with different vehicle owners. Electronics, lighting, alarm systems, air intakes, and exhaust were among the other modifications on which vehicle owners were polled.
Performance brakes includes a wide range of parts designed to improve vehicles' braking performance and appearance, including severe-duty brake pads, drilled-and-slotted rotors, multi-piston calipers, and disc-brake conversion and upgrade kits for classic muscle cars, Jeeps, street rods and sport-compacts.
Respondents affirming that they had modified their brakes included 17 percent of luxury/specialty vehicle owners, 14 percent of vehicle owners in the medium/large segment, 13 percent of pickup and small vehicle owners, 12 percent of minivan owners and 11 percent of SUV/CUV owners.
Only tires were more popular as a modification option.
However, the declining percentage of vehicle owners who said they had modified their brakes last year suggests that weakening economic conditions are affecting buyers' willingness to spend money on these products.
Respondents with incomes higher than $90,000 were more likely to say they had modified their brakes than those making less. The percentage of lower-income vehicle owners who purchase non-standard brakes will likely fall further this year in the current economy.
On the bright side, brakes seem to be gaining popularity among those who are most likely to personalize their vehicles. A separate survey of vehicle modification enthusiasts – those completing at least three modifications within the past 12 months – showed increased participation in the brakes category. Forty-nine percent of vehicle owners in this class said they had modified or upgraded their brakes last year, up from 37 percent in 2006.
Chart 1 compares the percentage of different modifications completed by respondents who qualify as modification enthusiasts in 2008 to the same survey in 2006.Modification enthusiasts tend to have higher incomes than the average vehicle owner. However, brake modifications and upgrades were popular across various demographic groups. Those making more than $80,000 a year were more likely to upgrade their brakes than those making less. Enthusiasts with professional and advanced degrees were also more likely than those with a high school education or less.
At the same time, it was also one of the most popular modifications among younger vehicle owners, with 65 percent of those in the 16-20 bracket saying they had modified their brakes.
The findings suggest that marketers should focus on brand-building initiatives in 2009 catering to modification enthusiasts rather than trying to find new customers in the general vehicle owner population. Those most likely to upgrade their brakes will probably do so, even if prices increase. Respondents who do not qualify as modification enthusiasts are measurably more sensitive to the changing economy.
Stephen Spivey is a Senior Industry Analyst for Frost & Sullivan's Automotive & Transportation research practice. He focuses on monitoring and analyzing emerging trends, technologies, and market behavior in the automotive aftermarket in the United States and Canada.
