While uncertainty due to the latest COVID surge may dampen expectations for 2022, there are some genuinely compelling reasons why next year could be a bumper year for the independent aftermarket in Ireland. Here are a few arguments to consider why garages and factor should look at 2022 with renewed optimism.
The car parc is aging Currently the average age of a car in Ireland is around 8.6 years, but this is on the rise. Ireland has a low average age by EU standards, where the average is 11.5. A combination of the COVID crisis and a global shortage of semi conductors, has seen new vehicle availability fall. Production is expected to be limited well into 2022 and car manufacturers are concentrating on more premium models, where profits are higher. This means far fewer cars are available for the mass market and even if a motorist wants a new vehicle, they are likely to have to wait to get it.
People are keeping their cars for longer Lack of new vehicle availability is not the only factor at play. Brexit has made used imports harder to come by and more expensive, while many people have also put off major purchases because of the COVID situation. This means that people are choosing to keep their existing cars for longer than normal.
More major repairs Older vehicles not only require more servicing, but also often need more major repairs. Higher mileages make clutch replacement far more likely, as well as issues with injectors and steering and suspension. All in all, there will be far more major repair opportunities for independent garages as the car parc ages.
Independents will be first choice As vehicles get older, they tend to gravitate to the independent aftermarket for service and repair work. They go out of warranty often making dealer servicing undesirable and dealerships are not geared up to tackle a vast array of older vehicles.
Petrol and diesel are yet to peak We all know that electric vehicle sales are on the rise and this is something that the aftermarket must consider and prepare for. However, in terms of aftermarket service and repair potential, petrol and diesel vehicles will not reach their peak for many years. The time lag between a new vehicle sale and that vehicle entering the independent aftermarket is such, that electric vehicles will not have a major aftermarket impact for several years and in the meantime, there will be more petrol and diesel cars than ever before requiring attention.
So despite the tough times we are currently negotiating, there are some grounds for the Irish independent aftermarket to be confident about the immediate years ahead. Perhaps 2002 will actually be a prosperous New Year.