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AUTOMOTIVE INDUSTRIES ASSOCIATION OF CANADA

The Canadian Automotive Aftermarket Demand Study Shows Tremendous Potential for Business Growth

November 29th, 2011 – AIA Canada’s “2011 Canadian Automotive Aftermarket Demand Study:  The Door to Opportunity” has now been released and it indicates that the door of opportunity is open even wider than before with $11.91 billion in underperformed maintenance in Canada. The report builds on AIA Canada’s ground breaking report “Hidden Potential Unmasked” released in October 2009, and serves to quantify the amount of additional potential demand within the Canadian automotive service and repair industry, while providing comparisons to the original study.

A number of Canadian drivers across the country are delaying essential vehicle maintenance and repairs, or simply not performing any at all. This ongoing issue, identified in the 2009 “Hidden Potential Unmasked” report, is increasing, along with the size of the vehicle park according to the 2011 Demand Study. In fact, the 2011 study has revealed that the number of delayed maintenance and repairs has actually increased. The results from the study estimate that the true industry potential demand is now at $30.40 billion, while actual services performed amount to only $18.49 billion. This significant difference of $11.91 billion indicates the overwhelming degree of opportunity that is being missed when customers bring their cars in for servicing.

The report clearly outlines that the opportunity lies at every level of the supply chain. With an overview of Canada as well as a breakdown by region and vehicle age, the report is a clear map to where the opportunity lies for the aftermarket. With an in-depth look at eight product categories and an easy to use shop calculator, the report is a tool as well as a source of valuable information.

“There exists significant additional opportunity each time a customer brings in their vehicle for servicing, and if attained, the benefits would echo through each layer of the automotive aftermarket supply chain,” states Marc Brazeau, President of AIA Canada. “If all Canadians were to practice the repair and maintenance habits of the most diligent vehicle maintainers, an additional $11.91 billion would flow into all levels of the supply chain, from the shop to the manufacturer. The question for the industry will be how to take advantage of this opportunity for growth within the existing customer base.” 

AIA is giving its members access to the full report at no cost in order to help them understand the benefits of promoting aftermarket repair and maintenance. Proactive service behaviour can be profitable to the industry, the environment and can also contribute to a safer, more reliable vehicle for the driving public.

AIA members can download a copy of the full report from the AIA website.  Please note that you must be registered and logged in to access the report. If you wish to register for the AIA member website access, please click here. Once logged in, visit the Publications section to download your copy of The 2011 Demand Study.

Please contact kina.leclair@aiacanada.com if you have any questions.

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