A price increase of just one cent per gallon leads to a spending increase of $4 million per day in the U.S. What seems like a little goes a long way, and impacts consumers’ inclination to spend within the aftermarket and at retail in general.
Port Washington, NY (PRWEB)
August 07, 2017
The storyline for the U.S. automotive aftermarket mid-way through last year was that average retail prices were down, yet dollar sales continued to grow; that story has changed in 2017. With a nearly 3 percent increase in average selling price, dollar sales grew just shy of 1 percent in the first six months of the year, while unit/quart volume declined by 2 percent*, according to global information company, The NPD Group.
NPD has found this performance to be correlated with the slowdown in the growth rate of miles driven by consumers in the U.S. In the 12 months through May 2017, miles driven grew by 1.8 percent, equating to an annual increase of almost 55 billion miles; the year prior, it grew at a rate of 82 billion miles**.
“Retail price increases, driven by a mix of inflation and product mix changes, are influencing the aftermarket trend so far this year,” said Nathan Shipley, director and automotive industry analyst, The NPD Group. “We are also seeing a link between the industry’s performance and miles driven, the latter of which is growing at the lowest rate in over two years. Higher gasoline prices in the first 29 weeks of 2017 factors into this slowdown. To put it in perspective, a price increase of just one cent per gallon leads to a spending increase of $4 million per day in the U.S. What seems like a little goes a long way, and impacts consumers’ inclination to spend within the aftermarket and at retail in general.”
Industry performance was off to a rocky start during the opening months of the year, but began to improve in March, with May and June being the best-performing months of the year thus far. In the first half, the top-performing categories which also outpaced the overall automotive aftermarket were tire/wheel accessories (+7 percent), wipers (+5 percent), lighting (+4 percent), batteries (+4 percent), and tape (+3 percent). With the exception of batteries, all of these top…