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AUTOMOTIVE INDUSTRIES ASSOCIATION OF CANADA

The 2012 Outlook Study Finds Positive Signs of Recovery in the Automotive Aftermarket Industry

November 13, 2012, Ottawa – The Automotive Industries Association (AIA) of Canada is pleased to announce that its 2012 Outlook Study is now available.

This biennial report, produced for AIA Canada by DesRosiers Automotive Consultants Inc., provides an in-depth look at the various factors that influence the success of Canada’s automotive aftermarket industry. By examining the state of the industry over the last two years and making calculated projections of future growth, this report paints an accurate picture of the industry that helps members in their business planning activities.

The 2012 edition of the Outlook Study found that the industry is beginning to recover from the 2008 economic downturn, both in terms of consumer spending and employment. Overall, employment rates have since increased, which bodes well for the aftermarket given that both vehicle ownership and usage are correlated with employment rates. In addition, the study indicates that the surge in new vehicle sales prior to 2008 will define the distribution of Canadian vehicles in the older age segments in the coming years to the benefit of the aftermarket industry.

Highlights from the study are as follows:

  • The aftermarket is now estimated to be worth $19.4 billion and employs 420,000 Canadians representing 50% of all employment in the automotive industry.
  •  54% of all vehicles registered in Canada are now over the age of 8 years with the average age of a vehicle on Canadian roads now standing at 8.54 years.
  • There were 22.2 million vehicles registered in 2011 with total annual vehicle kilometers driven measured at 469.8 billion kilometers or an average of 21,995 kilometers per vehicle.
  • Used vehicle sales represented 65.6% of all vehicles sold in Canada in 2011.
  • The average mileage recorded on a retired vehicle is now estimated at 320,000 kilometers.

“Improved vehicle reliability, the ratio of do-it-yourself versus do-it-for-me repairs, and the growing number of imported vehicles in the Canadian market will have profound impacts on the industry moving forward,” said Marc Brazeau, President, AIA Canada. “Though recovering from an economic slump always takes time, being aware of the factors that influence growth potential, like those outlined in this study, can help members of the aftermarket stay on the right track.”

The 2012 Outlook Study is available to all AIA members free of charge to give them greater context for the overall state of the aftermarket. Members can access the report by logging onto AIA’s website and visiting the Publications section. The study can also be purchased by non-members in the Publications section of AIA’s website.

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About AIA Canada
The Automotive Industries Association of Canada (AIA) is a national trade association representing the automotive aftermarket industry in Canada. The aftermarket is a $19.4 billion industry that employs 420,000 people. The industry is composed of companies that manufacture, distribute and install automotive replacement parts, accessories, tools, and equipment. AIA represents manufacturers, re-builders, manufacturers agents, warehouse distributors, national distributors, buying groups, wholesalers, machine shops, retailers, and through its councils, the interests of collision repair shops and automotive service and repair outlets. AIA’s mandate is to promote, educate and represent members in all areas that impact the growth and prosperity of the industry. Visit us on the web at www.aiacanada.com.

For more information, please contact:
Stephanie Miksik
Communications Coordinator
AIA Canada
1272 Wellington Street West
Ottawa, ON  K1Y 3A7
800-808-2920, ext 233
Stephanie.Miksik@aiacanada.com

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