Frost & Sullivan: US Motorists deferring vehicle maintenance

Tire Business staff report

Mountain View, California - While the number of vehicles on the road is expected to continue to increase for the foreseeable future, maintenance of those vehicles may be deferred for longer intervals, according to a Frost & Sullivan Inc. analysis.

The research firm estimated there were more than 244.1 million light vehicles in use in 2007 and the tally will increase at a compound annual growth rate of 1.7 percent until 2014.

“Although the rise in the number and age of vehicles is good news for the light vehicle repair service industry, they are likely to be offset by vehicle owners' extending the intervals between service as a means of saving money,” said Frost & Sullivan senior consultant Mary-Beth Kellenberger. “The economic uncertainty has consumers deferring expenses for as long as possible.”

In addition to driving less, consumers seem to be sharing vehicles within the household, purchasing smaller and more fuel-efficient vehicles and changing their driving behavior, according to Frost & Sullivan research. On the upside for independent repair shops, consumers seem to be gradually shifting to the aftermarket auto repair channel from the car dealer channel to reduce expenses.

However, vehicle owners are trying a multitude of strategies to save money so the effects on the repair industry will not be apparent for another six to nine months, according to the research firm.

“If price is a strong driver, the independent repair channel may actually experience higher traffic as consumers shift from higher-priced dealer service to lower-cost independent repair service,” Ms. Kellenberger said. “However, the industry is challenged by consumers' indecisiveness about how to respond.”

Consumers may put an increased importance on price as a deciding factor as to where to take their business, putting lower-cost providers in “a comfortable position,” Frost & Sullivan added.

This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.

Staff report from Tire Business (a Crain publication