New AIA Report Examines Dealer Landscape

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A new report released by the Automobile Industries Association of Canada explores the future of vehicle sales at auto dealerships.

“Aftermarket companies benefit from knowing the number of new car dealers and the volume of new vehicle sales,” AIA Canada explained in the publication of the study, Landscape of New Car Dealers 2021.

“It helps them understand what types of vehicles will be offered to them for repair, service and maintenance in the years to come. The trends impacting the dealer network are also closely linked to those in the aftermarket business. “

The new car and aftermarket sectors both face similar challenges. But, as the study noted, the aftermarket will have a longer lead time to adjust to some of these challenges.

The list of challenges includes:

  • Vehicle electrification
  • New and non-traditional competition
  • Digitization of operations
  • Alternatives to vehicle ownership
  • Business consolidation
  • OEM obligations
  • Economic trends
  • Response to climate change
  • Autonomous technology

The study explores the current landscape, including the number of dealers in Canada and sales levels in 2020.

It also examines electrification, its timing and its impact on the service sector. The study examines the competitors – both traditional and new entrants to the market. He is also interested in digitization. In this section of the study, which was carried out by Clarify Group, it is noted that “many aftermarket parts stores will be challenged to deliver the kind of exceptional online experience that new vehicle dealers will offer. more and more “.

The study highlights the fact that with the rapid evolution of activities and products, past achievements are not a guarantee of future success.

The publication is available from the AIA at no cost to members, or $ 249 for non-members.

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