The US is home to large automotive aftermarket retailers that cater to both car owners maintaining and upgrading their vehicles and professionals working in auto repair and maintenance shops. This industry is benefiting from several favorable trends. First, the number of miles driven continues to increase in the US, thereby increasing total wear and tear on vehicles. Second, vehicles are engineered to be reliably driven for high mileages. Coupled with high replacement costs, this creates an incentive for car owners to repair and maintain their vehicles. This trend is evident from the rising average age of passenger cars. Over the last ten years, the average age of US passenger cars increased by 22%, from 11.4 years to 14 years. The average age of light trucks, which are often pick-up trucks, has also increased, though less dramatically, from 11.3 years to 11.9 years. Additionally, technological advancements such as advanced driver assistance systems (ADAS) and connected car technologies are increasing the demand for specialized aftermarket components and causing a gradual shift from do-it-yourself (DIY) to do-it-for-me (DIFM). The increasing number of electric vehicles (EVs) on the road is also driving demand for specialized parts, including batteries, charging equipment, and unique maintenance tools. However, EVs potentially reduce overall maintenance requirements due to their fewer moving parts.
Source: R.L. Polk & Company, Bloomberg, February 2025.