Canadian vehicle usage remains strong. As a ripple effect, it’s also strengthening aftermarket demand, according to DesRosiers Automotive Consultants.
DAC has previously talked about vehicle usage as one of the key dynamics at play within the aftermarket arm of the automotive sector. They have also, in a previous update about the aftermarket, mentioned gasoline consumption as a key measure of vehicle usage.
“In broad strokes, more gasoline used means a greater total driving volume, leading to rising demand for parts and services,” said DAC in its recent update. “For 2024 as a whole, gasoline consumption saw a minor increase of 0.6 per cent over 2023, rising to 43 million cubic metres. This figure represents a 1.7 per cent increase over 2019, just before the start of the pandemic.”
However, as the Canadian vehicle fleet is always changing, DAC also mentioned the rising prevalence of BEVs and PHEVs as one of the long-term structural shifts they have observed. For 2024, this prevalence accounted for 14.6 per cent of new vehicle sales. However, even as this area of automotive experiences sharp growth in new sales, BEVs and PHEVs remain relatively small parts of the overall fleet of vehicles on the road. They make up less than 3 per cent.
Another trend is the improvement in fuel efficiency of the ICE fleet. DAC said this trend, along with the BEVs and PHEVs trend, work in tandem to suppress gasoline consumption. “An increase in this figure indicates that vehicle use is steadily climbing.”
“DAC tracks a wide range of vehicle usage variables, and all indicate that Canadians continue to rely heavily on their vehicles,” said Andrew King, Managing Partner at DAC, in a statement. “This demand will continue to supply the automotive aftermarket with the opportunity for growth and room to adjust to a slowly shifting market.”
