Auto Aftermarket Surges in Turkey


Turkeys automotive aftermarket for light vehicles is expected to grow by a compound annual growth rate of 4.9 percent for the next six years, from $4.5 billion in 2014 to more than $6.3 billion in 2021, thanks to a vehicle parc that is expanding and aging, according to an analysis by Frost & Sullivan.

The findings were in the international market research firms Strategic Analysis of the Turkish Automotive Aftermarket.

New vehicle registration decreased by about 16 percent in the passenger car and pickup/van segments between 2013 and 2014, increasing the average vehicle age in Turkey, Frost & Sullivan Automotive and Transportation Consulting Analyst Melek Ozturk said in a news release. Consequently, the need for spare parts and maintenance has grown, giving a boost to aftermarket sales in Turkey.

Fleets are expected to account for one third of all manufacturer-level parts sales, while individual-owned vehicles will account for approximately 70 percent of revenue, in 2021, Frost & Sullivan stated in a news release.

The research firm noted that an influx of unqualified products could threaten profitability in the countrys automotive aftermarket. Despite stringent European regulations, the availability of second line and counterfeit products produced under the names of quality global brands is affecting profits, the company concluded. In addition, the lack of trained workers impedes the implementation of required techniques and services, curbing revenues.

The analysis found that both aftermarket associations and global system manufacturers have been working to improve worker training, with right to repair panels and seminars on the quality and types of aftermarket products helping to raise awareness.

Ozturk noted that the emergence of online retail channels has encouraged the use of the Internet to research availability of parts and services, further improving awareness in Turkey. Up to half of all vehicle owners are likely to use the Internet and/or mobile apps as more accessories and do-it-yourself products become available, turning e-retail channels into key avenues for sales in the Turkish automotive aftermarket.

Related Topics