360payments.com JAN2020 / by original article here/ Read
Our team recently returned from SEMA and AAPEX, and we’re still trying to process it all! These are two of the biggest automotive trade shows in the world, and there’s so much to see it’s impossible to cover everything. No matter how busy we are, we always make sure we send someone over to AAPEXedu to listen to Mark Seng from IHS Markit give his take on the four top trends to watch for the automotive aftermarket in the coming year. Here’s what he had to say this year.
Light Vehicle Sales Have Leveled Off, But That’s OK
At first glance, this sounds like disappointing news. However, when we dig into the numbers we see that although IHS Markit is not forecasting a record year for sales in 2020, the total vehicles on the road will continue to increase. Also encouraging is the fact that although sales have hit a plateau, they have settled at a very high level that will continue to sustain the aftermarket for a long time to come.
Cars are Giving Way to Light Trucks at a Rapid Pace
Around 2011, a big shift started to take place in consumer preference. Consumers began to choose light trucks over cars at a significant rate, and in 2019 IHS Markit is predicting that light trucks will make up 71% of the total market, leaving cars with 29%. By 2026 the gap is expected to widen further, with light trucks making up 76% of the vehicle market and cars making up 24%. Digging deeper into the light truck numbers, we learn that although minivans and large SUVs fueled early growth in this market segment, crossovers and small SUVs are leading the way today with 70% of new vehicle sales. Also interesting is the body style loyalty we see when it comes to SUVs and crossovers – 70% of customers who purchase this body style purchase another.
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