Auto Aftermarket Surges in Turkey
Turkeys automotive aftermarket is expected to grow by 40 percent from U.S. $4.5 billion in 2014 to more than $6.3 billion in 2021, thanks to a rapidly expanding vehicle park as well as higher average vehicle age, according to an analysis by Frost & Sullivan. The findings were reported in the international market research firms Strategic Analysis of the Turkish Automotive Aftermarket.
New vehicle registrations decreased by about 16 percent in the passenger car and pickup/van segments between 2013 and 2014, increasing the averagxae 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.
In terms of revenue, the automotive parts replaced most often in Turkey in 2014 were tires, oil and auto body parts due to collisions, according to Ozturk. Oil has a higher replacement rate than the other two, especially for fleets, she noted.
Fleets are expected to account for one-third of all manufacturer-level parts sales, while individually owned vehicles will account for approximately 70 percent of revenue, Frost & Sullivan stated. Trends show that in Turkey, nearly 90 percent of fleet owners prefer diesel engine vehicles, said Ozturk.
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.
Counterfeit engine oil and other lubricant products are widely available in Turkeys automotive aftermarket, said Anna Ozdelen, a consulting analyst with Frost & Sullivans Intelligent Mobility team. Counterfeit products are often produced from waste engine oil and lubricants, she said. On the other hand, industry leaders cite engine oil and lubricant imports by unauthorized agents as a bigger problem.
Turkey is a do-it-for-me market, according to Ozdelen. Customers rely on mechanics to choose and change engine oil, she said. But suppliers realize that mechanics often lack qualifications, fail to match the right product to the vehicle and wrongfully offer higher priced products to customers.
The analysis found that associations and manufacturers have been holding seminars to raise awareness about the quality and types of aftermarket products. Ozturk noted that the emergence of eRetail channels has encouraged the use of the Internet to research parts and services, further improving awareness. Up to one-half of all vehicle owners are likely to use the Internet or mobile apps, turning eRetail channels into key avenues for sales.