The gap between the value of automotive repairs and services that could potentially be done in Canada, compared to the value of work that is actually done, continues to grow.
The latest “Canadian Automotive Aftermarket Demand Study,” released this week by the Automotive Industries Association of Canada (AIA), shows that a significant number of drivers are delaying essential vehicle maintenance or not performing any at all.
According to AIA, “The door of opportunity is open even wider than before, with $11.91 billion in underperformed maintenance in Canada.”
The report builds on AIA’s 2009 report “Hidden Potential Unmasked” which first quantified the potential demand for automotive service and repair.
The 2011 update notes that the size of the vehicle park has increased but the number of delayed maintenance and repairs has also increased.
The results from the study estimate that the true industry potential demand now stands at $30.40 billion, while actual services performed amount to only $18.49 billion.
“This significant difference of $11.91 billion indicates the overwhelming degree of opportunity that is being missed when customers bring their cars in for servicing,” an AIA press release states.
The report outlines the opportunity at every level of the supply chain, with an overview of the Canadian picture, a breakdown by region and vehicle age, and an in-depth look at eight product categories.
“There exists significant additional opportunity each time a customer brings in their vehicle for servicing, and if attained, the benefits would echo through each layer of the automotive aftermarket supply chain,” says AIA president Marc Brazeau. “If all Canadians were to practice the repair and maintenance habits of the most diligent vehicle maintainers, an additional $11.91 billion would flow into all levels of the supply chain, from the shop to the manufacturer. The question for the industry will be how to take advantage of this opportunity for growth within the existing customer base.”
AIA is giving its members access to the full report at no cost, in order to help them understand the benefits of promoting aftermarket repair and maintenance.
“Proactive service behaviour can be profitable to both the industry and the environment, and can contribute to a safer, more reliable vehicle for the driving public,” Brazeau says.