Canadian aftermarket keeps outperforming

Image credit: Depositphotos.com

The Canadian automotive aftermarket is maintaining its position as a “pillar of strength” and “continues to outperform” according to an analysis recently released.

DesRosiers Automotive Consultants reviewed the first quarter of retail sales across the entire automotive industry. While new car dealers are up, used sales are down — but it’s the aftermarket that has been a shining light.

“Retail sales in the automotive market saw fascinating market dynamics in the first quarter of 2023, said Andrew King, DesRosiers managing partner. Gasoline has levelled off, the aftermarket continues to outperform, while market forces push new and used dealers in different directions.”

Automotive parts, accessories and tire stores showed 10.2 per cent growth, the consultancy reported. The increase comes even after elevated sales a year ago when factors like inflation and supply issues raised prices.

New car dealers reported a 9.3 per cent increase, thanks to recovering inventory numbers.

Used dealers saw a 2.5 per cent decline. DesRosiers attributed that number to customers switching to the new market as more vehicles became available.

As for gasoline stations, DesRosier noted the one-year anniversary of the invasion of Ukraine fell in this time period, an event that led to a spike in gasoline prices. Retail sales here were flat as those increases subsided.