The number of eight- to 12-year-old vehicles – those in “the sweet spot” for aftermarket service and repair – is up dramatically from 2007, according to data collated by DesRosiers Automotive Consultants.
DesRosiers says there were a total of 22.2 million light vehicles registered in Canada in 2011. This compares to the 20.2 million registered five years ago in 2007. The total light vehicle count is expected to increase by 1.9% by 2012 and is forecasted to grow until the end of our forecast in 2020.
However, DesRosiers points out that the growth in the vehicle fleet is not uniform across the nation, amongst different vehicle age brackets, or between various vehicle segments and nameplates.
Although Ontario housed the largest light vehicle fleet in Canada, it displayed a middling growth rate when compared to Alberta, which posted the highest year-over-year increase in vehicle counts at 4.8%. The remaining prairie provinces along with Atlantic Canada also displayed above-average growth rates.
Due to the lower scrappage rates and the improved durability of newer vehicles, the average age of a light vehicle in Canada has increased by 0.31 years since 2007. Furthermore, the proportion of vehicles between 8-12 years old relative to the total vehicle fleet has increased by 3.1 percentage points (or 11.9%) since 2007. This trend is expected to continue in the near future and will stand to benefit businesses that sell or service older vehicles.