Auto Service World
News   November 30, 2021   by Adam Malik

New AIA report looks at dealership landscape

A new report released by the Automotive Industries Association of Canada explores the future of vehicle sales at automotive dealerships.

“Aftermarket businesses benefit from knowing the number of new car dealerships and volume of new vehicle sales,” AIA Canada explained in its release of the study, New Car Dealer Landscape 2021.

“It helps them understand what types of vehicles will be coming their way for repair, service, and maintenance in the years to come. The trends that impact the dealer network are also closely linked with those of aftermarket businesses.”

Both the new car and aftermarket sectors are facing similar challenges. But, as the study noted, the aftermarket will have a longer lead time to adapt to some of those challenges.

The list of challenges includes:

  • Vehicle Electrification
  • New and Non-Traditional Competition
  • Digitalization of Operations
  • Alternatives to Vehicle Ownership
  • Business Consolidation
  • OEM Obligations
  • Economic Trends
  • Climate Change Response
  • Autonomous Technology

The study explores the current landscape, including the number of dealerships across Canada and sales levels in 2020.

It also looks at electrification and its timeline and its impact on the service industry. The study examines competitors — both traditional and newcomers that are entering the market. It also looks at digitization. In this section the study, which was carried out by Clarify Group, it is noted that “Many aftermarket shops will be challenged to offer the kind of great online experience that new vehicle dealerships will increasingly deliver.”

The study highlights the fact that with the rapid change in business and products, past achievements are not a guarantee of future success.

The publication is available from AIA at no cost to members or $249 for non-members.