US business and consumer spending
US business and consumer spending; It was not able to display the next part of the first post “We aspire to conquer the aftermarket” there. According to Allied Market Research, the automotive aftermarket was valued at $438.70 billion in 2021, and is projected to reach $828.2 billion by 2031, growing at a CAGR of 6.2% from 2022 to 2031. The Asia-Pacific region dominates the market in terms of revenue, followed by Europe, North America and LAMEA. China dominated the automotive aftermarket in 2021, while India is expected to grow at a significant rate during the forecast period.
The rapid growth of the automobile sector across all segments, coupled with the increasing customer inclination towards the advancement of electronic accessories such as infotainment units, music systems, and others, is fuelling the growth of the automotive aftermarket. Key key factors driving the growth of the Automotive aftermarket are,
Development of Automotive Post Sale Services
Strict government regulations for replacing or upgrading vehicle components
Increase in the trend of vehicle customization with increase in disposable income.
In addition, the developing countries of Asia-Pacific and Africa offer many growth opportunities for the automotive industry. There is a huge demand for passenger vehicles in this segment and it is expected to grow during the forecast period.
To take advantage of lower manufacturing costs for vehicle parts exports, many automotive vehicle manufacturers were helped to set up manufacturing plants in Africa and the Asia-Pacific to meet local demand. The automotive aftermarket industry expected to provide an opportunity is segmented on the basis of application, distribution, vehicle type, condition and region.
By application, it is divided into infotainment and multimedia, engine components, tires and wheels, electrical products, seat and steering covers, and others. By distribution, it is divided into OEM and third party vendors.
By vehicle type, it is divided into two wheelers, passenger cars and commercial vehicles. According to the situation, it is divided into external accessories and internal accessories. By region, the market is analyzed in North America, Europe, Asia-Pacific and LAMEA.
American businesses and consumers spend about $1 trillion each year on the assets they already own.
In 1991, After-sales services are a high-margin business, and they consume a substantial portion of corporate profits. Corporations such as ABB, Caterpillar, GE and Saturn have garnered unwavering customer loyalty by providing top-notch after-sales services. In fact, a number that tells a company how loyal its customers are likely to be, is how high they rate the firm’s after-sales services.
Despite the apparent attractiveness of the aftermarket, most organizations waste its potential. They consider after-sales services a necessary evil and treat taxes like large business-to-business service contracts, small business-to-consumer warranties, and everything in between—an unnecessary expense.
This is also because, after sales support is extremely difficult to manage, and only companies that efficiently provide services can make money from them. How poorly large companies manage service networks, treating production and sales functions as stepchildren, are shocking facts about sales.
Customers are worried about the lack of parts. The customer also has to wait for a long time. If seen, about 50% of the consumers with such problems faced unnecessary delay in repairing the vehicles as the dealers do not have the right parts to fix them. Next, we will discuss the second part of “We aspire to conquer the aftermarket” related to our Pervious topics.