Vehicle Servicing & Replacement sample pages

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Attitudes toward vehicle servicing in Europe's mature markets have changed since the 2008 financial crisis. Motorists have cut their spending and new vehicle purchasing has dropped to all-time lows in Spain and Italy. Recent economic recovery and incentive schemes have helped new vehicle registrations to recover but sales remain low. In the emerging markets, new registrations have grown.Learn more with sample pages from our Vehicle Servicing & Replacement report

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Vehicle Servicing & Replacement sample pages

  1. 1. March 2014 Attitudes Towards Vehicle Servicing and Replacement | Charlie Schouten page 2 Motorists have changed their attitudes to vehicle servicing and replacement, dictated by falling disposable income and economic pressures Following the financial crisis and recession that began in 2008, attitudes toward vehicle servicing and maintenance in Europe’s mature markets, particularly in the leading five economies, have undergone major changes that continue to affect many economies to this day. Motorists have cut their spending significantly and sales of new vehicles have dropped to all-time lows in both Spain and Italy. The recent economic recovery and incentive schemes (such as scrappage schemes) have helped to drive an increase in new vehicle registrations, but sales remain well below pre- recession levels, and many motorists continue to reduce the amount that they spend on vehicle servicing and repair each year. In the emerging markets of Brazil, India and China, vehicle sales have remained strong. The number of new registrations recorded has grown year-on-year from 2007, and Verdict forecasts continued increases up to 2017. The younger vehicle parc in these countries has meant that demand for componentry and servicing has remained strong, reflecting increasing levels of vehicle ownership and growing disposable incomes. Across these markets, the frequency of servicing varies between six and 12 months, suggesting that motorists in these markets are more likely to have their vehicles serviced more frequently and also spend a significant amount on replacement parts It is clear that there are significant regional variations in motorists’ attitudes toward vehicle servicing. How this affects distribution channels, and their business planning, varies between the countries. In the UK and Germany, vehicle sales have remained strong, meaning that vehicle manufacturer networks will remain the leading distribution channel for parts, particularly as levels of knowledge amongst motorists is low. With most motorists reporting that they listen to the manufacturer’s recommendation when it comes to parts, there is a significant opportunity for upselling. In emerging markets, servicing is much more frequent and is typically undertaken on a six month cycle. In India, Brazil and China, this presents an opportunity for vehicle manufacturers to cement their leadership of the market. With new vehicle sales set to increase across all markets, there is still significant growth potential. As a result, dealership networks should target their marketing toward newer drivers by highlighting the quality of their parts compared to those of budget and mid-range suppliers.
  2. 2. March 2014 Attitudes Towards Vehicle Servicing and Replacement | Charlie Schouten page 3 To find out more about the current opportunities in the aftermarket, please contact enquiries@verdictretail.com The full report is available to purchase in our store. Some of our aftermarket channel reports: MOTORIST ATTITUDES TO COMPONENT REPLACEMENT: INSIGHT AND RECOMMENDATIONS HOW MOTORISTS USE THE INTERNET: INSIGHT AND RECOMMENDATIONS

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