The Canadian automotive aftermarket showed resilience in 2024, despite ongoing challenges, according to new survey results.
DesRosiers Automotive Consultants (DAC), in collaboration with the Automotive Aftermarket Retailers of Ontario (AARO), conducted a survey to understand the sector’s performance and expectations for 2025.
“The automotive aftermarket has seen strong performances even amidst the turbulence of the past few years,” said Andrew King, Managing Partner at DAC. “2024 was no exception with most aftermarket retailers seeing robust sales increases. However, challenges still linger in the form of parts prices and availability, as well as the ongoing struggle to find qualified technicians.”
Comparing 2024 to 2023, the majority of respondents reported sales growth: 23 per cent saw growth of 1-5 per cent, another 23 per cent noted 6-10 per cent growth, and 15 per cent experienced even higher increases. Compared to pre-pandemic levels, 72 per cent of respondents reported higher sales, with 20 per cent seeing similar performance and only 9 per cent remaining below pre-pandemic levels.
Looking ahead to 2025, 43 per cent of respondents expect sales to increase by 1-5 per cent, 20 per cent anticipate a 6-10 per cent rise, and 13 per cent foresee even higher growth. Meanwhile, 20 per cent expect no change from 2024, and just 4 per cent predict a decrease in sales.
Tire changes and sales remained the most stable category, with the lowest percentage of respondents indicating either growth or decline. Parts supply issues have slightly improved but remain a concern. For parts from jobbers, 51 per cent of respondents reported supply problems, while 49 per cent noted no issues. For parts from new vehicle dealers, 60 per cent cited concerns, with only 40 per cent reporting no issues.
Rising parts prices were a significant issue in 2024. Only 12 per cent of respondents saw no change in pricing from jobbers, and 14 per cent reported no change from new vehicle dealers. Price increases of 6-10 per cent were the most commonly cited change.
Finding qualified technicians continues to be a struggle. None of the respondents found the process easier in 2024, with 47 per cent seeing no change and 53 per cent noting it has become more difficult.
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