Secondly, it’s reported around 50 days after the measurements were taken, so it is not real-time, plus the data tends only to be collected from vehicles that travel on major thoroughfares, so cars and trucks driving on smaller and more rural roads are not included. Namely that data is collected at a national level, meaning it can be hard to dive down into specific regions, certainly in the U.S. In 2021, the number of vehicles in operation has continued to increase, as pandemic restrictions eased, plus the ongoing global semiconductor shortage- which has hampered sales of new vehicles-has continued to push up the average age of cars and trucks on the road.Ĭampau did acknowledge when it comes to VMT data there are some challenges. Going forward, Campau said he sees some positive developments for the aftermarket. “All these factors,” he said, “are important when it comes to managing your aftermarket portfolio.” Positive developments (9.71* in Canada).Īdditionally, newer vehicles are more complex, meaning they are more costly and often more time-consuming to repair, which has also resulted in higher revenues for aftermarket shops over the last few years.Īs a result, even though VMT declined significantly in 2020, Campau notes that these other factors helped reduce the decline in aftermarket revenues. Currently, according to IHS Markit, it’s around 12.1 years in the U.S. The average age of vehicles on the road in North America continues to increase year after year. Others include Vehicles in Operation (VIO), average vehicle age, and new vehicle costs, which given the ramp-up in technology and safety features over the last decade, including the proliferation of ADAS, has significantly altered the automotive aftermarket landscape. That said, Campau was quick to acknowledge that VMT is not the only influencing factor when it comes to determining revenues in the aftermarket. In 2020, with many people staying at home and not driving as the result of the pandemic and government instigated lockdowns, VMT declined significantly, and so did revenues. Though in most cases, vehicles wear more from usage than time.Ĭampau pointed to data from IHS Markit, that illustrated the correlation between VMT and the size of business revenue in the aftermarket. Traditionally, Campau notes that VMT wasn’t as much of a focus for the industry as vehicle age.
Vehicle Miles Travelled has a direct impact on vehicle maintenance and as a result, service shop revenues, which in turn impacts other businesses in the automotive aftermarket supply chain. This new situation presents some challenges but also opportunities for the aftermarket, something Todd Campau, Associate Director, Aftermarket Solutions, IHS Markit, discussed during a special webinar organized by the Auto Care Association in the U.S. Today, even as the economy gradually opens up, VMT levels are still not where they were, pre-pandemic. Yet perhaps an even bigger impact on the industry was the reduction in vehicle miles travelled (VMT).
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