LAS VEGAS — NPD Group has a bullish outlook for the automotive aftermarket going into 2022.
During a presentation Nov. 3 at AAPEX, Nathan Shipley, executive director, industry analyst for NPD Group's Automotive Aftermarket division, said the market research firm predicts that while retail sales for 2022 will fall 5.7% from 2021, sales are expected to be 8.5% stronger than 2019, before the COVID-19 epidemic.
During the pandemic, consumer buying behavior changed and was often directed to discretionary spending, such as recreational vehicles (RVs) and off-road vehicles. Some also turned to DIY vehicle maintenance, he said.
While consumers were driving less to work during the pandemic, they were putting miles on RVs for vacations, pulling boat trailers for recreation and need to maintain vehicles sitting in garages.
Another advantage for vehicle maintenance businesses is that consumers are buying older vehicles, more vehicles on the road are no longer under OEM warranty and as more consumers start going back into the office, they are forced to spend money on vehicle maintenance, Mr. Shipley said.
In addition, consumers seem to be less sensitive to price increases that have pervaded the tires and parts market, as well as all consumer categories, during the past 20 months, he said.