Automotive aftermarket in Canada to reach US $20.92 Billion in 2025

The Canadian Automotive Aftermarket is valued at US$ 17.81 Billion in 2019 and is poised to register CAGR of 2.72% in the forecast period (2019 – 2025) to reach market size of US$ 20.92 Billion in 2025.

The Key factors driving the growth of the segment include Aging of the Vehicle Fleet, Higher concentration of Light trucks and SUVs, Increasing Replacement of Components to Fuel the Growth and OEMs Aggressively Expanding their Aftermarket Activities

Definition / Scope
Market Overview
Market Risks
Top Market Opportunities
Market Trends
Industry Challenges
Technology Trends
Pricing Trends
Regulatory Trends
Other Key Market Trends
Impact of COVID-19
Market Size and Forecast
Market Outlook
Technology Roadmap
Distribution Chain Analysis
Competitive Landscape
Competitive Factors
Key Market Players
Strategic Conclusion
References
Appendix

Definition / Scope

The Automotive Aftermarket is the auto industry’s after-sales market. It is a secondary market in the automotive industry which involves the manufacture and supply of parts for motor vehicles fitted after the vehicle is sold.

The aftermarket includes companies in manufacturing, remanufacturing, distribution, retailing and installation of replacement vehicle parts, equipment, service repair, collision repair, replacement tires and accessories.

The Aftermarket parts are divided into two segments such as spare parts and accessories

The replacement parts are automotive parts manufactured to replace original equipment parts of an automobile as they become worn out or get damaged after a period of time.
The accessories are certain parts made for comfort, performance, safety or customization after the original sale of the vehicle.

The replacement parts and accessories are not necessarily manufactured by the Original Equipment Manufacturers.

The spare parts segment dominates the Canadian Automotive Aftermarket with a market share of around 80% of the total market value, generating around US$ 14.25 Billion in revenue.

Market Overview

According to the Automotive Industries Association of Canada (AIA Canada) the aftermarket parts in Canada reached a record C$23.64 billion/US$17.81 in 2019. This represents a 11% increase over 2014, when the aftermarket was C$20.4 billion/US$16 billion. It is a 7% increase from 2016, when the aftermarket in Canada was C$21.3 billion/US$16.4 billion.

There are over 4,600 dealers of auto parts & accessories and over 23,000 business locations in Canada for auto repair and maintenance. About a third of most Canadian auto repair companies are located in Ontario, followed by Quebec.

There was a recorded US$ 2.54 billion worth of retail sales for DIY parts in 2019, the second highest recorded figure in five-years. This represents 1.1 percent average annual growth since 2011.

However, the market for Do-It-For-Me (DIFM) parts or parts installed professionally has grown an average of 3.6 percent per-year over the same period, outpacing DIY/retail part growth.

The automotive DIY market in Canada is approximately 14% of total retail sales and with the growth pace of the DIFM market that share will continue to shrink over the next several years.

Aftermarket parts in Canada imports / exports

In 2019, the total value of Canadian automotive imports (vehicles and auto parts) from the United States increased by 6 percent. That includes a 9.6 percent increase in imports of automotive parts and a 5.8 percent rise in overall imports of motor vehicles.

The overall value of Canadian imports of US vehicles ( cars, medium and heavy duty trucks) amounted to C$ 53 billion / US$ 30.75 billion in 2019, with a 9.3 percent rise in imports of light vehicles, offsetting an 11.9 percent decline in imports of medium and heavy duty trucks.

Canadian automotive parts imports totaled US$ 36 billion/C$48 billion in 2019

Market Risks

Increasing average shelf life of automobile

OEMs advancements in technology such as improvements in powertrain technology, rust prevention, lubricants and superior products led to significant improvements in reliability and durability resulting in significant improvements in average shelf life of the automobiles, resulting in erosion of aftermarket sales margin.

Cost Factor

Auto parts manufacturers must have the production capacity and economies of scale to produce large quantities of products at low prices. Additionally large-scale auto part production requires advanced manufacturing facilities, which have high set-up costs.

Moreover with the onset of lighter fuel economy restrictions, spending on research and development (R&D) is high for certain products such as air conditioning and exhaust units.

Top Market Opportunities

Some of the key growth opportunities in the Canadian Automotive Aftermarket include

Aftermarket development

The market is set to witness significant growth due to consumers seeking cost-effective parts for major repairs.

The continuing growth of automotive aftermarket means that the parts manufactured may slightly change their business focus from cooperating with OEMs for new car sales to optimizing their supply chains and reach in the aftermarket repair and servicing segments.

The car of the future will be Connected, Automated, Shared and Electrified (CASE) creating business opportunities for those suppliers and distributors able to respond to change.

Digitalization of channels and interfaces

Digital channels will gain increasing influence in customers’ research and purchase processes in developed markets such as Canada. Customers turn to online communities and reviews, among other digital platforms, as a way to improve their purchasing decisions.

Multiple platforms for online parts sales exist already. Suppliers, OEMs, distributors, and workshop chains will continue to increase their online participation and launch new platforms. It is expected that the e-commerce share of parts sales will increase to 20% to 35% by 2035.

Digital will allow aftermarket players to further increase the automotive aftermarket’s value as connectivity helps them move closer to the end customer and generate big data.

Market Trends

Aging of the Vehicle Fleet

The continued ageing of the vehicle fleet is contributing to the growth of the aftermarket. Of the 26.8 million total light vehicles on Canadian roadways (about 70 percent), 18.4 million are six years or older, according to AIA, a segment that has increased by 19.5 percent over the past five years. In Canada, the average age of light vehicles is now 9.71 years.

This is the largest number of vehicles registered that are likely to be beyond the warranty duration of their manufacturer. As a consequence, in the near future, the aftermarket will see some of its best years as the out-of-warranty repair and maintenance market continues to expand.

Higher concentration of Light trucks and SUVs

The Canadian vehicle portfolio has a greater concentration of light trucks and SUVs owing to their high residual value and functionalities. As light trucks have higher priced components, this trend provides more sales opportunities for the aftermarket players, which raises the value of component and service, thereby driving the growth of the segment.

Increasing Replacement of Components to Fuel the Growth

Increasing customer awareness about proper maintenance and repair of vehicles to preserve their performance and quality are factors expected to help the growth of the market.

The rising demand for long-distance travel and crossover vehicles further increases the need for frequent maintenance and replacement of vehicle parts. Increasing flexibility in the design and manufacturing of vehicles enables greater customization by end users, which is expected to fuel demand for the automotive aftermarket.

OEMs Aggressively Expanding their Aftermarket Activities

Original Equipment Manufacturers (OEMs) have gradually increased their level of operation and emphasis within the supply chain of the automotive aftermarket industry. For example, by building their networks of non-car brand-specific repair shops.

In order to compete with independent players and keep consumers in their networks longer, main players trying to keep up with the vehicle-age driven market have introduced second service formats and second brands (for example, VW Direkt Express) or remanufactured components.

OEMs are also investing in optimization initiatives for customer engagement and implementing differentiated service offerings by, for example, leveraging vehicle connectivity to attract customers and automating service and repair decision-making.

French carmaker PSA, for example, has made an independent significant part of its five-year growth plan ‘Press to Pass’. PSA has launched many of its brands across the entire value chain in conjunction with a series of acquisitions. PSA has a stake in the Distrigo and Mister Auto distribution networks, and with Aramisauto and Autobutler.

It is also active in the area of intermediaries in the aftermarket. PSA aims to reach all customers with this strategy, regardless of their vehicle brand, age or distribution channel. Other OEMs, both volume and premium players, have begun to follow PSA’s example, thus driving growth over the forecast period in this market.

High R&D expenditures

Over the forecast period, high R&D spending is expected to impede market growth. Different constraints are faced by car producers, such as higher production costs during production cycles.

However, some automotive replacement products, such as aftermarket filters, offer the ability to pick a component that suits the condition in which the vehicle is running.

Surging Demand for Electric Vehicles to Inhibit Market Growth As a result of growing environmental consciousness and rising fuel prices around the world, the popularity of electric vehicles (EVs) is continuously rising.

In 2018, the total stock of EVs in Canada exceeded 42700 million in 2018, reflecting a whopping 223 percent rise from the previous year, according to the International Energy Agency (IEA).

The current vehicle aftermarket is largely associated with the requirements of traditional, fossil fuel-based vehicles, and very few players are expanding into the area of the EV aftermarket, which may impede the growth of the automotive aftermarket.

Vocational education and training issues

The evidence compiled in this report indicates that just under half of all automotive businesses (48.4%) engage in VET system through the hiring of apprentices.

Responses received from these businesses indicate good to average experiences for most users across a range of measures including the teaching of theory and basics, technology training, course content assessment processes and the reporting of apprentice progress.

Industry Challenges

Growing Skill Shortage

A number of studies and reports have found a persistent shortage of trained automotive technicians over the last few years. This is part of a larger, nation-wide problem of a shortage of persons entering into the skilled trades across multiple industries, the automotive aftermarket being just one.

In April, the Automotive Industries Association (AIA) of Canada released a statement arguing that the national skills shortage is “severely impacting Canada’s automotive aftermarket industry with a growing number of job vacancies and not enough skilled workers to fill them.”

The AIA specifically pointed to a CARS Council report that found there are over 11,800 unfilled positions in Canada’s automotive aftermarket.

The employers surveyed said that three of the top five barriers to growth were the supply of qualified new hires, staff time management skills and technical skill levels.

Inventory Challenges

The Automotive Aftermarket players in Canada manufacture parts and components of different models with a few of these models in production for more than a decade. To serve such an industry, the aftermarket industry handles a large variety of parts in different sizes. This can result into an inventory management nightmare.

Technology Trends

Some of the emerging technology trends in the Canadian Automotive Aftermarket include

e-retailing

The increasing number of e-commerce platforms and rising collaboration between e-commerce platform providers and brick & mortar stores is one of the major factors driving the e-commerce automotive aftermarket.

Another prominent growth driver of the e-commerce automotive aftermarket is e-tailers acting as service aggregators to provide price and quality assurance to customers.

E-commerce platforms are increasingly being adopted by customers due to the availability of multiple brands at competitive prices and also because the platform serves product specifications and varied product requirement of customers.

Owing to this factor, service aggregator e-commerce platforms are expected to stoke the growth of e-commerce automotive aftermarket.

3D Printing

Automakers and parts suppliers are adopting 3D Printing, a technology that can make custom parts on demand and has the potential to mass produce parts.

Many automakers now use 3D Printing to make prototype parts for vehicle development as well as tools and assembly aids for manufacturing operations.

Several car companies are looking to produce parts with 3D Printers in the next five years. Some automakers currently produce handful of small replacement parts, typically interior form pieces. 3D Printing enables efficient fabrication performance and reduction of emission-toxicity.

Pricing Trends

Some of the key pricing trends witnessed in the Canadian Automotive Aftermarket include

Labor costs were 42.1 percent of the total aftermarket size, totaling US$ 9.1 billion. For each dollar spent on labor, parts for the install cost approximately US$ 1.04.

The cost of operating a vehicle rose 5.5 percent in 2019. Labor for maintenance and repair services rose 1.8 percent, while parts costs increased 1.5 percent.

Regulatory Trends

The regulations monitoring the automotive aftermarket in Canada include

CASIS – The Canadian Automotive Service information Standard

The Canadian Automotive Service Information Standard (CASIS) provides a framework for Canadian automobile manufacturers to share their service, training and repair information with the automotive aftermarket industry on a level equivalent to that of their authorized dealers.

The CASIS provides access to OEM information and tools to any service provider on a national basis and regardless of association affiliation. As a consequence of which consumers will have broader availability of facilities either authorized OEM dealerships or independent shops – in which to have their non-warranty vehicle service conducted.

VSP – Vehicle Security Professional Program

The Vehicle Security Professional Program is a data exchange system initiated and designed co-operatively by automakers and independent auto repair community in co-operation with the insurance and law as a part of the Canadian Automotive Service information Standard (CASIS) agreement.

It allows the aftermarket to access security-sensitive information related to automobiles (i.e. key codes, immobilizer reset information and similar types of information) while protecting the safety and security of consumers and the integrity of automobile security systems.

Other Key Market Trends

Skills Landscape

In the automotive industry, competition is intense as the sector expands and evolves. By incorporating innovative technologies to distinguish and strengthen their products, successful companies must continually innovate.

These new technologies would also have an impact on the research and development of future methods, requiring the continuing development and training of current and future employees.

The new automotive industry skills landscape is far different from that of the past and will continue to grow in the future.

As vehicles incorporate more software into their systems and the divide between the automotive and technology industries becomes increasingly blurred, more expertise, including those from the fields of science, technology, engineering, and mathematics (STEM), is required.

In order to keep up with current and potential business talent needs, it is recommended that the automotive industry, education sectors and government build the right collection of skills and apprenticeship training programs.

Impact of COVID-19

Virtually every corner of the world has been disrupted by the COVID-19 pandemic, which has taken a lot of economic activity to a virtual standstill.

But many industries with traditionally strong and stable dynamics are good candidates to rapidly bounce back once recovery starts, and lucrative investment opportunities remain the leading players in those industries. A perfect example is the automotive aftermarket.

The aftermarket is a vast and vital sector of the automotive industry, with over 190,000 Canadians working in the maintenance and repair of Canada’s 28 million light vehicles on the roads.

The automotive aftermarket is a relatively recession-resilient sector, but an unprecedented decline in overall mileage driven in most segments has triggered sales decreases of more than 50 percent; sales is likely to return to previous levels by the end of the year, but the environment may change significantly.

Leading Segments for Growth during COVID-19 Pandemic

In the past two months, COVID has impacted all areas of the automotive aftermarket; however, segments are beginning to show signs of growth. Segment valuations remain largely in line with pre-COVID trajectories, with the exception of automotive OEMs witnessing widespread sweeping shutdowns and declines in output.

Below are segments that have been identified in the automotive aftermarket as potential post-COVID growth areas.

Automotive production:

Forecasts of the production of light vehicles are down from 15 percent to 20 percent as OEMs are forced to shut down production.
OEMs aim to reach previous production levels and demand to account for lost time until production restarts; the market is unlikely to normalize until the 4th quarter of 2020 or the first quarter of 2021.

Automotive sales:

some dealerships have remained open, but annual sales would have an effect of 10%-20% on average.
Potential post-crisis pent-up demand for pick-up trucks and SUVs Outlook largely depends on greater economic health outlook
Based on relative pricing and the surplus of returning leased vehicles, the pre-owned market would return faster.

Aftermarket product manufacturing:

Production operations remain open for ‘vehicle critical products’, but participants cite actual production of parts changes day by day
Recovery will vary by vehicle segment as manufacturing returns to pre-crisis levels, with additional upside attributed to domestic manufacturers taking share from imported products that will face additional barriers.

E-Commerce:

Traditionally, online retailers have concentrated on niche components, which has been somewhat offset by an rise in demand for the required replacement of parts that brick and mortar stores have not been able to satisfy given current market conditions.
Expect online shopping will continue to increase to alleviate exposure concerns
Companies are likely to shift emphasis to online sales models in response to changes in customer demand preferences

Brick and mortar retail:

with lower support staff and facilities provided, storefronts opt for “curbside pick-up”
For smaller brick and mortar players, continued growth in e-Commerce and lack of cash-at-hand would likely result in more bankruptcy claims.

Installers:

installers have largely remained open, with differences state by state that have generated some regional difference in business results.

Market Size and Forecast

The Canadian automotive aftermarket hit an all-time record of US$ 17.81 billion in 2019, propelled by surging vehicle registrations. The outlook for the market is strong, with forecasts predicting continued expansion over the coming years.

Although it is expected to witness a slowdown due to the shortfall in sales of the automotive segment of Canada due to the outbreak of the COVID-19 Pandemic in Canada, the sales are set to drop based on the following scenarios

Scenario	Impact in Growth	Drop in Market Revenue	Estimated Market Size
Delayed Curve	– 2.4%	US$ 35.9 Mn	US$ 17.45 Bn
Fast Recovery	– 9	US$ 160.3 Mn	US$ 16.20 Bn
Profound Recession	– 13.8	US$ 245.8 Mn	US$ 15.35 Bn

The forecasts for the various leading segments of the Canadian Automotive Aftermarket due to the outbreak of COVID-19 are as follows

Automotive production:

Year	Production of Light Vehicles	Change in Production (%)	Market Revenue
2019	1.4 Million		US$ 17.56 Bn
2020 (est.)	1.1 – 1.2 Million	-10 to 20%	US$ 13.8 Bn

Forecasts of the production of light vehicles are down from 15 percent to 20 percent as OEMs are forced to shut down production, thereby leading to a production cut in the range of 210,000 to 280,000 causing a drop in the revenue to the tune of US$ 3.76 Billion, impacting the market revenue to decline from US$ 17.56 Billion in 2019 to an estimated market size of US$ 13.8 Billion in 2020

Automotive sales:

Some dealerships have remained open, but annual sales would have an effect of 10%-20% on average, impacting their revenues to be affected to the tune of US$ 6.44 Billion to US$ 12.88 Billion from the current market size of US$ 85 Billion in 2020

Aftermarket product manufacturing:

The Aftermarket Product Manufacturing segment is expected to witness a mild slowdown to a level of 3-5% in 2020 as the Production operations remain open for ‘vehicle critical products’. This segment is expected to witness a fall in revenue to the range of US$ 53.4 Million to US$ 89 Million in 2020

E-Commerce:

Online shopping is expected that it will continue to increase to alleviate exposure concerns
Companies are shifting emphasis to online sales models in response to changes in customer demand preferences.
The e-commerce segment is expected to witness significant growth registering a CAGR of 33% thereby expected to witness increase in revenue to the level of US$ 2.57 Billion in 2020 thereby totalling a market size of US$ 10.3 Billion in 2020.

The most notable trend from the last and current Outlook Study has been a surge in new light vehicle sales; they reached all-time record highs in Canada over the past two years.

For instance, Sales of new light vehicles for September 2020 were estimated by DAC to be up 2.4% over September 2019 reaching 169,876 units. This growth has positive long-term implications for the aftermarket outlook as these record volumes of new vehicles age into their prime aftermarket years.

The aftermarket sector, as a whole, employed approximately 423,400 Canadians in 2019, up 2.2 percent from 414,300 employees in 2018.

Employment in both the core and total aftermarket has been on an upward trend with all categories showing growth between 2018 and 2019.

Ontario was the province with the largest aftermarket sector, with 148,200 employees. Quebec and Alberta had the second and third largest workforces with 98,600 and 64,200 employees respectively.

Based on an analysis of the most recent data gathered by DAC, retail sales, excluding collision repairs, in the Canadian light vehicle aftermarket totaled US$ 17.56 billion in 2019.

Relative to the size of the aftermarket in 2018 (US$ 17.11 billion) this represents a 2.6 percent increase. The size of the aftermarket is expected to continue growing over the next coming years.

Ontario was the largest market for aftermarket retail sales, accounting for US$ 6.09 billion of the US$ 17.81 billion total. This represents just over a third of the total market, all concentrated within Canada’s most populous province.

Following Ontario, the Prairie region accounted for 23.0 percent of the aftermarket, with retail sales valued at US$ 4.07 billion. Quebec was the third largest region with a total of US$ 3.74 billion in 2019.

Vehicles between eight and 11 years-old accounted for US$ 4.83 billion of the US$ 17.81 billion total market in 2019. These vehicles represent the largest segment with regard to the aftermarket, followed by the 15-year-and-older segment, and the 12-to-14-year-old segment, which accounted for US$ 3.65 billion and US$ 3.13 billion respectively.

There was a recorded US$ 2.54 billion worth of retail sales for DIY parts in 2019, the second highest recorded figure in five-years. This represents 1.1 percent average annual growth since 2011.

However, the market for Do-It-For-Me (DIFM) parts or parts installed professionally has grown an average of 3.6 percent per-year over the same period, outpacing DIY/retail part growth.

Labour was at a five-year high in 2019, accounting for US$ 7.46 billion dollars of the total US$ 17.81 billion aftermarket. At the same time, business for professional services in the aftermarket grew at an average of 2.9 percent annually, culminating in the record-high observed in 2019.

Market Outlook

Canada represents the second largest automotive aftermarket in North America

The Canadian Automotive Aftermarket sector is estimated to generate total revenues of US$ 17.81 Billion in 2019, representing a Compounded Annual Growth Rate (CAGR) of 2.7% between 2019 and 2025. It is expected that the Canadian Automotive Aftermarket is expected to reach a market size of US$ 20.92 Billion in 2025.

The components segment is expected to be the sector’s most lucrative in 2019, with total revenues of US$ 14.53 Billion, equivalent to 81.6% of the sector’s overall value.

While the outlook for the aftermarket is positive, it should be noted that there are a number of dynamics at play causing analysts to question the direction of the automobile industry as a whole.

Many concerns surrounding its future have been focused on the idea of “disruptors”. Ride sharing, alternative powertrains and connected/autonomous vehicles have the potential to completely reshape the automotive industry and the automotive aftermarket.

Technology Roadmap

As repair cycles shift, demand for vehicle parts decreases, and the skills necessary for vehicle repair and maintenance become more nuanced, the aftermarket segment will be strongly impacted by technological advances.

For the aftermarket segment, however, it is not all gloom and doom. Telematics and other new technologies may offer an opportunity for the industry to explore further opportunities for revenue.

At present, players in the aftermarket industry are investing in more employee preparation and pursuing new tactics to take advantage of these revenue opportunities.

Distribution Chain Analysis

The Key stakeholders in the distribution chain of Automotive Aftermarket in Canada include

Parts Manufacturers

Produce parts and other goods made for automobiles and trucks

OE parts manufacturers – parts are made for original equipment – OE part (new vehicle) assembly and whose products may also be sold in the aftermarket.
Aftermarket parts manufacturers

Remanufacturer / Rebuilder

A rebuilder of motor vehicle engines and hard parts, selling to distributors and repair shops.

Warehouse Distributors

Stocks inventory of parts and goods purchased from manufacturers, then sells to automobile jobbers, retailers or directly to repair shops.

Program Group / Distribution

A group of warehouse distributors / businesses purchasing, selling and marketing under a common name. Program groups may be large organizations that purchase parts directly from parts manufactures, offer warehouse distribution access as well as marketing, training and other services.

Jobbers

Purchases products from distributors then sells and delivers to repair shops.

Auto Service Center

Companies that specialize in specific auto performance and repair service i.e. transmissions, brakes, air conditioning / radiators.

Service Stations

Gas stations with at least one repair bay in operation. They purchase their parts from their parts stores, car dealers, distributors and the internet.

General Garage / independent service providers / service outlets / repair shops

Businesses usually owned by an individual or partners that sell repair and maintenance services to vehicle owners. May belong to a program buying/marketing group.

Competitive Landscape

Technological advances and growing investments in R&D by manufacturers are expected to drive the aftermarket. Several domestic and regional ompetitors prevailing in the market are challenged to deliver creative goods to help customers understand the changing technology, security needs, and business practices.

Recent Industry Developments

In 2019, the Parts Alliance, the UK’s second largest automotive parts distributor, was acquired by Canada-based Uni-Select.

In 2019, Ridgemont Equity Partners acquired Uniban Canada, a Canadian distributor of automotive windscreens and windows, and PH Vitres d’Autos, a provider of auto glass installation, repair and replacement services.

Competitive Factors

The aftermarket is highly competitive industry with presence of major industry players. It is regulated industry with government entities monitoring compliance with safety standard and applicable use of accessories and components.

The prominent players operating in the automotive aftermarket includes Canadian Tire Group, Carquest Corporation, Fleet Complete, Gates Canada, Inc., Geotab, Inc., Lordco Parts Ltd., MAS Automotive Distribution, Inc., Mevotech, Inc, Mojio, Inc.,Pitstop, UAP, Inc. (NAPA Canada), Uni-Select, Inc., Vast-Auto Distribution LTE, Wakefield Canada, Inc., Worldpac, Inc., etc.

The industry participants are undergoing merger & acquisition to strengthen their industry foothold.

Key Market Players

Some of the Key players in the Canadian Automotive Aftermarket include

Canadian Tire Corporation is a Canada-based company, which operates through a range of businesses. The Company’s operatng segments include the Retail segment, the CT REIT segment, and the Financial Services segment.

Its retail segment operates through its retail banners, including Canadian Tire, PartSource, Petroleum, Gas+, Mark’s, Mark’s Work Wearhouse, L’Equipeur, Helly Hansen, SportChek, Sports Experts, Atmosphere, Pro Hockey Life (PHL), National Sports, Sports Rousseau, and Hockey Experts.

Carquest Corporation is an American automotive parts distribution network that is currently owned and operated by Advance Auto Parts via independent retailers associated with the network. As of October 4, 2014 Advance operated 5,305 stores, 109 Worldpac branches.

Fleet Complete, Inc. designs and develops software solutions. The Company offers IoT solutions for fleet, asset, and mobile workforce management. Fleet Complete serves customers in Canada.

Gates Canada Inc. wholesales and distributes automotive parts and equipment. The Company markets its products to private and commercial customers in the automotive, industrial, construction, and materials handling industries throughout Canada.

Geotab Inc provides wholesale distribution of transportation equipment and supplies. The Company focuses on building a platform where businesses are able to customize their solution, access data, and discover actionable insights on one web-based software solution. Geotab serves clients worldwide.

Lordco Parts Ltd. manufactures and distributes after market parts for automobiles and trucks. The Company provides wholesale distribution of motor vehicle supplies, accessories, tools, and equipment throughout Canada and the United States.

MAS Automotive Distribution Inc. designs and manufactures auto parts. The Company produces and distributes chassis, steering, suspensions, coatings, tie rods, control arms, ball joints, and alignment components for automotive industries. MAS Automotive Distribution serves customers in North America.

Mevotech Inc. manufactures automotive parts. The Company offers suspension products, such as ball joints, bushings, control arms, stabilizer links, and strut mounts.

Mojio Inc. provides internet application solutions. The Company produces mobile tools for internet access through vehicles. Mojio operates in Vancouver, Canada.

UAP, Inc. of Canada distributes, merchandise, and remanufactures automotive parts and replacement accessories for cars, trucks, and heavy vehicles.

The Company also produces heavy and light vehicles parts, leaf springs, threaded rods and under-carriage components, gasoline engines, diesel engines and components, cylinder heads, transmissions, differentials, and body products.

Uni-Select Inc. specializes in the wholesale distribution of automotive replacement parts, equipment, tools, and accessories. The Company operates distribution centers throughout North America.

Vast-Auto Distribution Ltee was founded in 2002. The Company’s line of business includes the wholesale distribution of motor vehicle supplies, accessories, tools, and equipment.

Worldpac, Inc. distributes motor vehicle equipment and aftermarket replacement automotive parts. The Company offers automotive air conditioning, brake system, clutch, cooling system, emissions and fuel, engine, exhaust system, maintenance, suspension, and transmission system. Worldpac serves customers in the United States and Canada.

Strategic Conclusion

Canada’s Automotive Aftermarket sector is mature, with modest growth expected, with modest growth expected. The online channels are emerging as business strategy and are attracting major aftermarket players to provide innovative products and services through Online Channels.

Moreover, digital driven products and services are setting a new trend and will be major growth drivers. In one of the most important automotive aftermarket industry trends, digital influence is driving billions of dollars in parts and accessories sales.

Through all retail channels by 2019, which includes offline retail through chain stores like Uni-select or UAP Inc., automobile dealers, local independent brick & mortar retailers.

Much of this is occurring on mobile phones. The growing trend of manufacturers selling direct is another aftermarket trend to follow in the aftermarket.

References

Appendix

C$ – Canadian Dollar
DIY – Do-it-Yourself
DIFM – Do-it-For-Me
R&D – Research & Development
CASE – Connected, Automated, Shared and Electrified
OEMs – Original Equipment Manufacturers
SUVs – Sport Utility Vehicles
EVs – Electric Vehicles
IEA – International Energy Agency
VET – Vocational Education and Training
AIA – Automotive Industries Association
CASIS – The Canadian Automotive Service information Standard
VSP – Vehicle Security Professional Program
STEM – Science, Technology, Engineering, and Mathematics