Lang Aftermarket iReport – 2020 Virus Impact: Lower 2020 sales by product group

“Car and light truck aftermarket annual product volume in the U.S. will decline during 2020 for the first time since the 2008 Great Recession. Despite important differences between the severe aftermarket consequences of the 2020 Virus and the 2008 Recession, there is a basic similarity: Accessories will suffer significantly greater sales losses than will Repair Parts.

“Within each of these two major groups of light vehicle products, there will be wide variations in how individual products perform. Overall, the 2020 Virus will be more hard-hitting than the 2008 Great Recession for light vehicle aftermarket sales, especially in its first year.”

— Jim Lang, publisher, Lang Aftermarket iReport

******************************************************************************

Aftermarket Impact of the Virus to 2023 and Beyond: In-Depth Report coming in July
“This iReport, along with more special iReports focusing on the 2020 Virus through May, will provide a preview of the comprehensive and detailed report to be published in July by Lang Marketing, with six monthly updates of key developments to be issued from August through December.”

******************************************************************************

Repair Parts and Accessories

Light vehicle aftermarket products can be divided into two major categories: discretionary and non-discretionary products.

Discretionary products, which are composed of Accessories, are not necessary for the regular operation of vehicles. They modify the appearance, performance and/or handling of cars and light trucks.

On the other hand, non-discretionary products enable a vehicle to operate properly. These Repair Parts are regarded as necessary purchases. However, variations within each of these product categories (discretionary and non-discretionary) affect “how necessary” buyers perceive specific product purchases to be.

2008 Recession Impact on Repair Parts

Total light vehicle aftermarket products declined during 2008 and 2009, before rebounding in 2010 when annual sales topped the total for 2007.

Repair Parts sales (those necessary for vehicle operation) declined in 2008 at an average pace that was less than one-third the overall loss rate of light vehicle aftermarket product volume for the year.

2008 Sales Differences Among Repair Parts

There was wide variation in the 2008 sales strength of different types of Repair Parts. Among the over 68 types of Repair Parts covered by Lang Marketing’s Aftermarket Annual, approximately 45% recorded an increase in 2008 sales, while 55% declined to such an extent that annual 2008 Repair Parts volume fell, compared to the previous year.

Accessories and the 2008 Recession

Accessories were hit much harder by the 2008 Recession than were Repair Parts. Accessories covered by Lang Marketing’s Aftermarket Annual suffered a collective loss rate that was over 10 times greater than the percentage decline of Repair Parts.

Specialty Equipment Market Hit Hard

The impact of the 2008 Recession was even more profound on the Specialty Equipment market, some which is not covered by Lang Marketing’s Aftermarket Annual.

Specialty Equipment products, as a group, plunged at a rate over 15 times greater than the 2008 decline of the Repair Parts covered by Lang Marketing’s Aftermarket Annual report.

Differences in Impact: 2020 vs 2008

Lang Marketing expects that the 2020 Virus will have a greater impact on aftermarket product sales than the 2008 Recession did. The rate of sales decline suffered by total aftermarket products will be several times greater during 2020 than it was in 2008. The Virus’ aftermarket impact will extend into 2021 and for some products even years longer.

The 2020 Virus will hit Accessory volume with at least a 30% greater impact than what occurred during the 2008 Recession. The sales impact on Accessories will be accentuated by the devastating reduction of new vehicle 2020 volume caused by the Virus.

More Details in the Upcoming July Report

In-depth analysis will be provided for Repair Parts and Accessories, with many specific product categories covered, in Lang Marketing’s upcoming July report: The Aftermarket Impact of the Virus to 2023 and Beyond.

Six Major Takeaways

• Light vehicle products can be divided into two major categories: discretionary and non- discretionary products.
• Accessories (discretionary products) will experience a much greater reduction in sales volume during 2020 than will Repair Parts (non-discretionary products).
• There was wide variation in the sales strength of different types of Repair Parts during the 2008 Great Recession. Repair Parts related to starting, stopping, and steering had stronger performances than Repair Parts in general.
• Accessories covered by Lang Marketing’s Aftermarket Annual declined at a pace over 10 times greater during 2008 than the loss of Repair Parts volume. The impact of the 2008 Great Recession was even more profound on the Specialty Equipment market.
• The total decline of overall aftermarket products will be several times greater in 2020 than what occurred in 2008, with the impact of the 2020 Virus carrying into 2021 and even beyond that for many products. The 2020 Virus will wreak havoc on Accessory volume, with at least a 30% greater sales loss than the devastation caused by the 2008 Great Recession.
• Detailed aftermarket analysis of the 2020 Virus consequences for the aftermarket will be provided by Lang Marketing’s upcoming July report: The Aftermarket Impact of the Virus to 2023 and Beyond.

Copyright 2020 by Lang Marketing Resources, Inc.

NOTE: Special thanks to publisher Jim Lang for granting us permission to publish the Lang Aftermarket iReport.