AIA Study Shows How Covid-19 Impacted Canada's Aftermarket
COVID-19 has disrupted the Canadian economy, and, inevitably, the automotive aftermarket, a recent study shows.
Published every two years, the Automotive Industries Association (AIA) of Canada’s 2020 Outlook Study provides an in-depth examination of the state of the Canadian automotive aftermarket, and presents an analysis focused on forecasts and trends that will likely impact the industry in the future.
Findings show that although the aftermarket industry has remained resilient in even the toughest economical situations, the supply and demand for aftermarket products and services has changed.
With more people staying home, for example, vehicles are being used less, and as such, fewer kilometres are being driven.
The spending habits of many Canadians have also changed, and because of that, the purchases of aftermarket products and services also stand to be reevaluated, as purchases are weighed against financial means.
According to the report, it is estimated that total kilometres driven in 2020 in North America may slip to approximately 240 billion kilometers, down 30 per cent relative to the year before. The reduction is expected to curtail demand for scheduled maintenance.
As a result of COVID-19 and new concepts, like physical distancing, many industries are adapting to the new normal, and listing their services online. As such, automotive consumers, too, are becoming more comfortable shopping online, from the safety and convenience of their own homes.
Although the current COVID-19 pandemic is also affecting vehicle sales, an analysis of historical data shows little fluctuations in the number of vehicles in operation during economic downturns. The total number of vehicles in operation are forecasted to reach 29.8 million in 2020.