Explore more Categories
Artificial Intelligence involves the science and engineering of developing intelligent machines
The manufacturing world is at a cusp of a new revolution that will redefine conventional business models
IoT will have a major impact on businesses and consumers in the future
The world is creating 2.5 exabytes of data daily
Our research seeks to connect-the-dots across multiple trends
Personal Robots are Set to Be a $19 Billion Market
Strategic Analysis of BREXIT and its Implications to Industries, Economies and Societies
Time for a Digital Revolution in the Women’s Health Market
iFrost is a digital platform for interactive and dynamic reporting of data.
The TOEs are a great source of information which gives corporates critical information on companies to action for their strategic investments either as an open source platform or to collaborate and to develop successful products
Growth of 5.5% Expected as Right to Repair Policy and Online Retail Will Force OEMs, Dealers, and Suppliers to Re-imagine Business Models and Forge New Partnerships
save 25 %
* Required Fields
Pay by invoice
This report is a synopsis of the trends and factors impacting the South African automotive aftermarket sector. It provides an economic analysis to assist the reader in understanding the economic backdrop against which the aftermarket is performing and being challenged. It is clear that the previous government’s maladministration of the economy led to its weakening and the rand’s depreciation, which has had serious knock-on effects for the aftermarket sector. Another important element is the performance of the new vehicles sector and how vehicles in operation are being impacted. These variables have a direct effect on the performance of the aftermarket. Although the weakened economic climate has caused a decline in new vehicle sales, the vehicle parc has continued to show consistent growth. The parc has, however, aged with the average age of the South African passenger and light commercial vehicles rising to 12.2 years since manufacture. An aging parc generally incurs higher maintenance costs and therefore drives growth in the aftermarket. The South African automotive aftermarket sector has exhibited strong growth since the early 2000s and is forecast to grown annually at 5.5% until 2023. Heightened levels of investment into the sector combined with new entrants, most notably small-sized businesses, have seen total revenue reach $6.6 billion in 2017. As a consequence of new entrants, concentration levels in the industry have dropped, thereby reducing any one company’s ability to control prices and effectively raising levels of competition in the industry. Tires remain the largest generator of revenue in the industry while service parts and then parts and accessories follow closely. South Africa’s laggard status as an adopter of electric vehicles will mean that it remains oriented toward servicing and replacement parts while the advanced markets of the United States and Europe gradually move to toward electric components for the drivetrain. Authorised dealers constitute approximately 20 to 30% of the aftermarket sale of parts while the independent aftermarket distributors and retailers account for the lions share. The introduction of the right-to-repair policy in South Africa is expected to have a significant impact on both the aftermarket retailers and the repairer industry. The policy aims to raise competition among industry players by reducing barriers to entry and ultimately, the price of servicing/repairing vehicles that remain under warranty from the factory. The local industry is faced with significant change; the rise of online retail and the right-to-repair policy will challenge businesses in the short to medium term. The adoption of new business models and establishment of new partnerships will be essential to achieving strong growth up to 2023.
Key Issues Addressed
Global Medium/Heavy Commercial Vehicle Aftermarket Outlook, 2021
North American Class 1–3 Replacement Tire Pressure Monitoring Sensors Aftermarket, Category Management
North American Medium and Heavy Duty Commercial Vehicles Replacement Filters Aftermarket, Category Management
GCC Light Vehicle Aftermarket Outlook, 2021
Benchmarking of OEM Strategies for the Commercial Vehicle Aftermarket in Europe
Global Aftermarket Outlook, 2021
Vehicle Emissions Regulations, Environmental Awareness, and Safety Driving Demand for ABS and Oxygen Sensors in Europe
2019 United States Automotive Technicians’ Choice
Paradigm Shift in the Asia-Pacific Automotive Spare Parts Distribution and Retail Landscape
Increasing Competitive Intensity to Push Major Suppliers Out of Business in the North American Brakes Aftermarket
flexible electronics market
augmented reality market
cyber security market
mobile biometrics market
neurology devices market
residential energy storage market
medical supplies market
video analytics market
Don't have an account? Create One!
Enter your Email Address here to receive a link to change password.
If you are an existing frost.com user, please register using the same email for seamless access
Already have an account? Login!
Use your Linkedin account to login or register within our store.You're just one click away.