Auto parts experienced V-shaped recovery throughout 2020: DesRosiers

Analysts at DesRosiers Automotive Consultants Inc. (DAC) say auto parts stores experienced a V-shaped recovery this year, with a decline in business of 27.9% in  April, and a subsequent recovery of 9.6% in June and 7% in July.

Automotive parts, accessories, and tire stores recaptured much of their lost ground this summer.

According to an information release from the data firm, the wave of lockdowns spurred by the Covid-19 outbreak has had varying impacts on different sectors of the automotive industry, and recovery has been inconsistent across the industry.

From new vehicle sales, to used vehicle sales, to aftermarket performance, to other segments of the industry, various impacts have been seen throughout the pandemic.

“Retail sales is one variable that provides a measure of performance across various segments of the industry,” says Andrew King, managing partner of DAC. “The picture it presents sheds light on the uneven nature and timing of recovery.”

As an example, he said two very different patterns can be seen in the retail sales at gasoline stations and used car dealers.

Gas station sales fell rapidly in the early days of the pandemic and have only partially recovered.  Cut by nearly half in April and May, gas station sales were still down 17.2% in the month of July versus the same month in 2019 as the recovery in kilometres driven has been slow.

Used car dealers, on the other hand bounced back rapidly, with a brutal sales decline of 64.2% in April swinging to a sales gain of 10.1% for the month of July.