Great Britain’s Automotive Aftermarket Holds Potential for U.S. Suppliers - aftermarketNews

Great Britain’s Automotive Aftermarket Holds Potential for U.S. Suppliers

Recent changes in market access regulations and similarities between consumers in the U.K. and U.S. make the $24 billion automotive aftermarket in Great Britain a potential sweet spot for U.S. suppliers.

RESEARCH TRIANGLE PARK, NC — Recent changes in market access regulations and similarities between consumers in the U.K. and U.S. make the $24 billion automotive aftermarket in Great Britain a potential sweet spot for U.S. suppliers.

As reported in MEMA’s bimonthly newsletter Market Analysis, U.S. aftermarket manufacturers have had limited access to Great Britain’s markets in the past due to a 1995 exemption to European Union free market regulations. The exemption, which allowed vehicle manufacturers to require dealers to use OE parts and materials exclusively, was relaxed near the end of 2002 — giving aftermarket manufacturers more access to dealers.

A recent U.S. State Department report notes that the British aftermarket’s estimated value of $24 billion – excluding accessories and chemicals such as waxes and polishes – includes:

• $8.5 billion for tires
• $6.8 billion for brakes
• $3.1 billion for filters
• $1.8 billion for batteries
• $1 billion for shock absorbers
• $800 million for spark plugs.

The driving habits of British consumers are very similar to their U.S. counterparts, according to MEMA’s findings. British consumers are dependent on motor vehicles for personal transportation and the movement of goods. According to the World Automotive Market Report, published by the Overseas Automotive Council (OAC) and MEMA, the vehicle population in Great Britain was approximately 32 million vehicles in 2002 and new vehicle sales were 2.9 million. This puts the U.K. on par with the U.S. as a vehicle-intensive country with 2.1 persons per car.

However, British drivers do not share U.S. consumers’ love of trucks, vans and utility vehicles as personal vehicles. Light trucks, vans and SUVs make up just 11 percent of the vehicles on British roads, compared to approximately 40 percent in the U.S. British drivers also favor diesel-powered light vehicles more than U.S. drivers. Like the rest of Europe, diesels are becoming very popular in Great Britain and it is expected that by the end of 2004, diesel-powered vehicles will account for nearly one-third of all new light vehicle sales.

_______________________________________

Click here to view the rest of today’s headlines.

You May Also Like

Auto Care Association Welcomes GAO Report on Vehicle Repair Restrictions

Auto Care is renewing its call for Congress to advance federal Right to Repair legislation that protects independent business owners and consumers.

Right to repair 2

Following the release of a new Government Accountability Office (GAO) report detailing how automaker restrictions on vehicle data are creating barriers to repair vehicles, the Auto Care Association is renewing its call for Congress to advance federal right to repair legislation that protects independent business owners and consumers.

MEMA Applauds the EPA on Light- and Medium-Duty Vehicle Emission Standards

MEMA says the EPA final rule includes an amended and more comprehensive analysis of technological alternatives.

Opposition Grows for California’s Mandate Banning New Gas-Powered Vehicle Sales
Maryland Teamsters Call for Passage of HB 1447

The legislation would protect middle-class jobs and motorist safety, according to the International Brotherhood of Teamsters.

Maryland Teamsters Call for Passage of HB 1447
$78B Pro-Business Tax Bill Passes House, Awaits Senate

The bill aims to reinstate tax incentives for R&D and small business investments, along with other measures.

MANN+HUMMEL NA Aftermarket Shows Right to Repair Support

Representatives from MANN+HUMMEL’s North American aftermarket brands recently visited Capitol Hill to express their support for H.R. 906.

Other Posts
MEMA Issues Statement on Tax Relief for Working Families Act

This measure contains the restoration of one year deductibility of research and development expenses, a key legislative priority for the association.

SEMA Urges Members to Support Tax Relief Bill

The Tax Relief for American Families and Workers Act of 2024 benefits specialty automotive aftermarket businesses, according to SEMA.

SEMA Action Network
ASA Endorses Bipartisan Tax Framework

The Automotive Service Association says the legislation is beneficial for independent automotive repair businesses.

Industry Partners Urge Congress to Pass R&D Deductibility Fix

“Congress must restore this tax provision to enhance U.S. competitiveness, job creation and innovation as soon as possible,” said Ann Wilson, MEMA’s executive vice president of government affairs.