What's in store for the aftermarket in 2021?

December 14, 2020
What's in store for the aftermarket in 2021? Gillian Fanning, Marketing Director, Serfac Ltd & President of the Society of the Irish Motor Industry (SIMI)
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In what has been a very difficult year for many motor trade businesses, long established Irish parts distributor, Serfac, has helped to keep the wheels of the industry turning and keep many motorists on the road, by working closely throughout the COVID 19 crisis, with its many motor factor customers nationwide.


Serfac Marketing Director, and current President of the Society of the Irish Motor Industry (SIMI), Gillian Fanning, says that despite the Coronanvirus restrictions, certain areas of business have seen growth. She comments, “We have seen a strong uplift in battery sales over recent months, as extended periods of inactivity, such as during lockdown, has had a detrimental effect on battery life. This is an area where we are also anticipating strong demand over the winter.” Gillian adds, “The return of NCT testing after the initial lockdown also prompted an increase in sales of Steering & Suspension component sales and car care products, such as the SONAX range, have also performed well, presumably due to the fact that people have had more time on their hands to look after their vehicles.”

Gillian believes that the aftermarket has been instrumental in providing critical support throughout the COVID crisis and will continue to do so into the future. This she thinks is positive for the sector in 2021. She points to the ageing car population, due to lower sales of new cars over the past few years, as being a major opportunity for the aftermarket in the year ahead, as delayed new car purchases make servicing and repairs on existing second hand vehicles more vital.  

Gillian comments, “Although there has been less road traffic over recent months, it’s likely that as we emerge out of lockdown, people’s reluctance to use public transport due to risk of infection will mean greater use of personal vehicles.  There is already anecdotal evidence of this on the retail side of the industry, where previously “one car” families have purchased second cars.” She adds, “Undoubtedly COVID has created greater consciousness of the environment and I believe that people are more concerned with how they can personally reduce their environmental footprint.  Servicing and maintaining their vehicles regularly would make a significant contribution to this objective and FIGIEFA, the European aftermarket lobbying group, has proposed adoption of a compulsory “ECO Check” for second-hand vehicles which, if adopted by the EU, would stimulate additional demand in the servicing sector.”

Gillian also makes the point that training and education will also be critical, in order to ensure that the aftermarket is better prepared for new trends and challenges. She says, “We need to have a qualified workforce to service, maintain and repair increasingly complex vehicles.”

Looking at other opportunities that 2021 may present Gillian comments, “Over the coming years, I believe that there will be a move towards more sustainable spare parts, for example, responsibly sourced or remanufactured parts, and organisations that can respond to this trend, will be better positioned to capitalise on new business opportunities. There has also been an increase in online parts purchases by end consumers, so digital channels are becoming increasingly important and will continue to be a growth area over coming years.”

 
Serfac
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