New Lang Report: ‘Aftermarket vehicles’ growing at faster pace than total vehicle population

“Aftermarket Vehicles (a term coined by Lang Marketing) are cars and light trucks that are four years and older. Aftermarket Vehicles represent approximately 80% of total light vehicles in operation (VIO), but they generate over 96% of aftermarket product and service volume (not including Accessories and Tires).

“Changing new vehicle sales and the impact of COVID-19 have combined to create substantial changes in the population growth, nameplate mix, and average age of Aftermarket Vehicles on U.S. roads. This will help to boost aftermarket product volume in the coming years.”

— Jim Lang, publisher, Lang Aftermarket iReport

Vehicle Age Groups Are Not Equal in Aftermarket Sales

Aftermarket Vehicles (cars and light trucks four years and older) generate over 96% of total light vehicle aftermarket product and service volume (not including Accessories and Tires). However, they represent a smaller share of total light vehicles.

Aftermarket Vehicles are significantly different from other cars and light trucks in operation. The differences cover a wide range of automotive factors including the rate of population growth, nameplate mix and average age, among other factors.

Aftermarket Vehicles Are Different

Aftermarket Vehicles are different from the overall vehicle population, just as the aftermarket is different from the OE market.

Key metrics of Aftermarket Vehicles demonstrate their disproportionate impact on aftermarket product and service sales and can help people both inside and outside the automotive industry to understand more fully the dynamics of aftermarket growth in the U.S. and how it is being influenced by the changing Aftermarket Vehicle population.

Aftermarket Vehicle Population Growth

Aftermarket Vehicles are increasing at a faster pace than the total vehicle population. Over 21 million Aftermarket Vehicles were added to the nation’s VIO between 2017 and 2020. This represented an annual increase of 3.0%, substantially greater than the 1.8% yearly growth of total vehicles in operation.

Aftermarket Vehicles will continue to grow faster than the total vehicle population during 2021 and 2022, as new vehicle production (and, therefore, sales) are hampered by component shortages, particularly computer chips.

Aftermarket Vehicle Average Age

The average age of Aftermarket Vehicles is increasing faster than the age profile of total cars and light trucks. Aftermarket Vehicles are over two years older in average age than all light vehicles on U.S. roads.

This difference in the average age levels of Aftermarket Vehicles and the total light vehicle population is increasing. Over the past ten years, the age of Aftermarket Vehicles has increased nearly 50% more than the age of all cars and light trucks in operation.

Lang Marketing expects that the average age of Aftermarket Vehicles will continue to increase faster than all vehicles on the road during 2021 and for the next several years.

Nameplate Shift

The nameplate mix of Aftermarket Vehicles today is substantially different from ten years ago, reflecting the surging new vehicle sale share of foreign nameplates.

Domestic nameplates accounted for nearly two-thirds of cars and light trucks at least four years old in the U.S. during 2010. Foreign nameplates represented approximately half of Aftermarket Vehicles last year.

Aftermarket Implications

Recognizing the importance of Aftermarket Vehicles and how they differ in a number of key aspects from the total vehicle population is necessary to develop a fuller understanding how aftermarket sales will develop in the coming years.

Six Major Takeaways

• Not all age categories of cars and light trucks contribute equally to aftermarket product and service volume across the U.S.
• Aftermarket Vehicles (cars and light trucks 4 years and older) generate over 96% of total light vehicle product and service sales (not including Accessories and Tires), although they represent a much smaller share of the nation’s VIO.
• Aftermarket Vehicles are growing at a faster pace than the total vehicle population, adding over 21 million cars and light trucks between 2017 and 2020.
• The average age of Aftermarket Vehicles is increasing faster than the age profile of all cars and light trucks, with Aftermarket Vehicles over 2 years higher in average age during 2020 than all vehicles on U.S. roads.
• Foreign nameplates currently account for approximately half of Aftermarket Vehicles, up from less than a one-third share ten years ago.
• Aftermarket Vehicles are different from the overall vehicle population, just as the aftermarket is different from the OE market.

Copyright 2021 by Lang Marketing Resources, Inc.

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