Canadian aftermarket auto parts use increases modestly in 2010 Q4

The use of aftermarket auto parts in Canada in 2010 Q4 has increased modestly from previous quarters, according to the 2012 Q1 Mitchell Industry Trends Report.

The report shows Canadian aftermarket parts use has exceeded 13% of the parts dollars used on an average estimate. This is up modestly from 12.7% in 2011 Q2 and 12.8% in 2010 Q4.

In contrast, the Mitchell report notes, Canadian OEM parts use decreased to 72.7% of the parts dollars used on an average estimate, down from 73.1% in 2010 Q4. This “reflects a stabilization of the Canadian market for OEM parts,” the report says.

Greg Horn, Mitchell’s vice president of industry relations, discusses some factors influencing alternate parts usage in the report. He observes the dynamics behind the increased use of alternate parts may be more complicated than simply the aging fleet of cars.

“I have always believed that the acceleration in alternate parts use we have seen in the last few years has been due in large part to an aging fleet of cars in the U.S.,” Horn writes. “For older vehicles, there are more recycled parts available and additional production of aftermarket parts.”

But, Horn goes on to observe, aftermarket parts use accelerates rapidly after the insurers’ two-year model restriction is removed — insurers have an OEM parts use only in place for most newer vehicles — and then moves up slightly as the vehicle ages.

“In fact, the volume of vehicles being appraised does not seem to affect the linear progression of alternate parts being used, particularly when we exclude the three most recent model years,” Horn writes.