Dealers in Canada may be interested to note that retailers believe sales growth will continue this year despite challenges, according to DesRosiers Automotive Consultants’ latest aftermarket update.
Andrew King, Managing Partner at DAC, said the Canadian automotive aftermarket has seen strong performances even while dealing with the turbulence of the past few years.
“2024 was no exception with most aftermarket retailers seeing robust sales increases,” he said in a statement. “However, challenges still linger in the form of parts prices and availability, as well as the ongoing struggle to find qualified technicians.”
DAC worked with the Automotive Aftermarket Retailers of Ontario to gain a better understanding of the Canadian automotive aftermarket, how it performed in 2024, and what to expect this year. In comparing sales results in 2024 with 2023, DAC’s update shows that most respondents cited sales growth, with 23% seeing growth of 1-5%, 23% seeing 6-10% growth, and 15% seeing even higher growth.
“In comparison to pre-pandemic, 72% of respondents noted that their sales are above those levels with a further 20% seeing similar performances,” said DAC. “Only 9% of respondents cited sales that have remained below pre-pandemic levels.”
On expectations for the year, 43% of respondents expect an increase of 1-5%, with 20% expecting an increase of 6-10% and 13% expecting higher growth. Twenty per cent of respondents do not expect a change from 2024, with only 4% anticipating sales decreases.
Tire changes and sales was the most stable category when comparing results for specific types of work, with the lowest percentage of respondents pointing to either sales growth or decline.
On the human resource issue, retailers were asked how their ability to find qualified technicians changed in 2024. “None of the respondents noted the process getting easier. Meanwhile, 47% saw no change against 53% that noted it has become more difficult,” said DAC.
