Canadian automotive aftermarket sees success in 2023, growth in 2024


For the dealers that are interested, DesRosiers Automotive Consultants worked with its colleagues at the Automotive Aftermarket Retailers of Ontario (AARO) to collect industry feedback on how the Canadian automotive aftermarket performed in 2023, along with an outlook for this year. As it stands, sales are expected to continue to grow.

“Despite lingering parts availability and pricing issues, the aftermarket saw significant success in 2023 with more growth expected in 2024, this time in step with a recovering new light vehicle sales market,” said Andrew King, Managing Partner at DAC, in a statement.

DAC compared sales results between 2023 and 2022 and found that aftermarket retailers “overwhelmingly” experienced growth. Half of the respondents noted sales rising between 1% and 10%, and 37% saw growth above 10%. When compared to the pre-pandemic period, most aftermarket retailers (60%) noted sales increases. And 29% pointed to sales levels being around pre-pandemic levels.

For 2024, DAC said 69% of aftermarket retailers expect single-digit sales growth, while 8% of respondents are anticipating more than 10%. Another 12% expect little change, and some expect sales to decline. However, aftermarket retailers also point to parts supply issues as being the norm. This is coming from both jobbers and new vehicle dealers — although there appears to be some improvement.

“In the previous survey, 67% of respondents cited parts supply issues stemming from jobbers with this figure dropping to 52% for 2023 as a whole,” said DAC in its update. “From new vehicle dealers, 85% of respondents pointed towards parts supply issues for the first half of 2023 against 80% for the year overall.”

The price for parts have also increased from 2022 to 2023, of between 6-10%, based on 52% of respondents.

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