RESEARCH TRIANGLE PARK, NC — Higher prices at the gas pump haven’t kept Americans from driving, according to new market research conducted by MEMA’s Automotive Aftermarket Suppliers Association (AASA).
Total mileage for June and July, the most recent figures available, show that the miles American drivers are tallying up has increased from the same months in 2003.
“As we have seen in the past, it takes an actual shortage of fuel to make mileage fall,” said Frank Hampshire, AASA/MEMA director of market research. “What we may see instead is a shift in the types of vehicles Americans drive,” he said.
Hampshire explained that the large passenger cars favored in the 1970s – the Ford LTD, the Pontiac Bonnevilles, Buick LeSabres or the ubiquitous station wagon – were drastically downsized or, in the case of the station wagon, virtually disappeared by the 1980s due to the fuel shortage in 1974. The fuel-efficient Japanese compact cars gained popularity and market share in their place, Hampshire noted. “Today, we are seeing increased interest in diesel and hybrid vehicles,” he said.
Increasing miles driven is ordinarily good news for the automotive aftermarket. More miles driven increases underlying demand for service and maintenance, Hampshire said. However, high fuel prices without a decrease in driving means consumers must find the money elsewhere. As a result, they cut back on spending – including spending on vehicle maintenance and repair. This will cause an upturn in unperformed or deferred maintenance.
MEMA’s bimonthly publication “Market Analysis”, which is available by subscription, examines such issues as economy’s effect on the industry and provides valuable market data such as miles driven. For more information, go to: www.mema.org.
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