The Southern European Wear & Tear Parts Industry, 2011–15

• Publication date: June 2012
• Report size: 171 pages

While the general trend in mature industry s is for declining average mileage in lieu of higher vehicle ownership ratios per household, the ongoing economic stagnation is causing motorists to seek financial savings by substituting vehicle use, thus decelerating their vehicles' wear rates and as a result reducing consumption of wear and tear parts on an annual basis....

While the general trend in mature industry s is for declining average mileage in lieu of higher vehicle ownership ratios per household, the ongoing economic stagnation is causing motorists to seek financial savings by substituting vehicle use, thus decelerating their vehicles' wear rates and as a result reducing consumption of wear and tear parts on an annual basis.Achieve revenue growth by understanding the projection sales of wear and tear components by country and adjust business development plans to suit.Uncover new distribution opportunities for your products by identifying which types of retailer are most successful in each country and why.Improve your product mix and hence sales by gaining insight into what types of wear and tear parts are proving popular, by country and region.Formulate industry share and channel share objectives for your industry player using our product and distribution data.Develop new strategies to sell your products by understanding where premium and budget brands are most popular, and why.Despite only having a relatively small volume in 2011, shock absorbers are proportionally one of the most valuable components in the aftermarket. This component is expected to experience a decrease of almost 9% in sales by 2015, and while this equates to smaller losses than some other parts, the financial ramifications will be profound.As developments progress in the improvement of the passenger car, batteries will be required to evolve in order to serve the needs of technological advances. These next generation batteries are expected to be fully integrated into the industry within the next four to five years.Of the wear and tear components expecting decline, the windscreen wiper blade industry anticipates one of the smaller contractions. While this may appear positive, this particular component is relatively low cost and, as such, requires higher volumes in order to maintain industry value.Which countries have the highest penetration of brake drums and shoes?Which countries are displaying the highest growth rates for brake drum/shoe versus disc/pad setups?What are the consumer behaviors regarding retailer and component brand selection in the European wear and tear parts industry, by component and country?What are the industry shares of the key supply chain for brake parts, exhausts, batteries, wiper blades, shocks and cat converters, by country?What is the average annual spend by consumers on wear and tear parts by component and by country?

Automobile Brake Industry in Portugal

OVERVIEW
Summary
Main Facts
Development of brake industry s depends on technological preference
Recent deferral of component replacement will lead to a surge in demand
Manufacturers and consumers alike impacted by raw material price increases
Cost sensitive nature of motorists determines preferred sales channel
Vehicle scrappage likely to occur before catalytic converters need to be replaced
Developing technology promotes growth in the starter battery industry
Replacement of all exhaust systems is being deferred, leading to industry contraction projection
Strategic recommendations
Focus on stocking assets that are in demand and movable
Strategic partnerships may prove key for sales channel industry share gain
Increase consumer awareness of shock absorbers to boost aftermarket sales
Vehicle parc dynamics will indicate the future component requirements of national aftersales industry s
To increase industry share vehicle manufacturer networks should encourage warranty on newer vehicles
Opportunities exist to grow the catalytic converter industry in Croatia based on EUR pean Union emission laws
Focus industry ing strategies on tradesmen and distribution ers rather than consumers
Focus production based on industry needs or consider supplying other economies
Executive summary
Brake components
Catalytic converters and exhaust systems
Other wear and tear components
PORTUGAL
Brake pads
Volume: the economic situation caused motorists to defer component replacement
Value: manufacturers move toward budget goods to counter raw material price rises
Industrieshares: financial instability means price is the main priority among motorists
Consumer attitudes: rising fuel costs prompt motorists to look at alternative transportation
Brake discs
Volume: replacement rates will fall despite a rise in volume
Value: change in production focus could influence component longevity
Industrieshares: independent garages offer the cheapest overall service
Consumer attitudes: aftermarket to be impacted by fall in average mileage
Brake shoes
Volume: consumers look to more efficient vehicle options
Value: high labor costs mostly relate to component complexity
Industrieshares: established trends evident among preferred sales outlets
Consumer attitudes: production diversification may be the best future strategy
Brake drums
Volume: extended replacement cycles could further hinder industry development
Value: suppliers see no benefit in absorbing raw material price increases
Industrieshares: younger vehicles tend to have a unique distribution preference
Consumer attitudes: vehicle efficiency is a long-term objective among motorists
Catalytic converters
Volume: affordability could potentially impact the number of future sales
Value: bold suppliers look to absorb rising production costs
Industrieshares: the current economic climate dictates sales channel preference
Consumer attitudes: lack of control means catalytic converters are a lesser priority
Exhaust systems
Volume: the recession continues to affect the aftermarket as exhaust system sales decline
Value: consumers deferring replacement leads to declining market sales
Industrieshares: traditional channels will continue their dominance on the exhaust system aftermarket
Consumer attitudes: overall aftermarket spend set to decline, affecting exhaust system sales
Shock absorbers
Volume: the shock absorber industry will continue to decline as the economy struggles, leading to deferred replacement
Value: longevity of shock absorbers leads to declining market sales
Industrieshares: vehicle manufacturer networks set to increase their share as consumers move away from garages
Consumer attitudes: consumers are unwilling to replace shock absorbers as aftermarket spending declines
Windscreen wiper blades
Volume: consumers will continue to defer replacement, leading to volume declining
Value: value set to decline as consumers switch to less expensive products
Industrieshares: consumers prefer alternative channels in an attempt to save costs
Consumer attitudes: consumers' price sensitivity leads outlets to compete on price rather than quality
Starter batteries
Volume: volume of sales will increase despite continuing economic problems
Value: consumers forced to return to the industry will lead to value increasing
Industrieshares: consumers continue to prefer traditional channels as industry shares remain stable
Consumer attitudes: starter battery industry grows despite overall spend decreasing
GREECE
Brake pads
Volume: dramatic improvements needed to initiate industry recovery
Value: limited activity renders production cost-ineffective
Industrieshares: cost is seen as more important than quality
Consumer attitudes: change in behavior leaves manufacturers potentially exposed
Brake discs
Volume: lack of affordability forces motorists off the road
Value: business opportunities set to reduce
Industrieshares: sales channel experience is important in the eyes of motorists
Consumer attitudes: motoring is becoming increasingly seen as a luxury
Brake shoes
Volume: improvement in consumer confidence needed to help arrest industry decline
Value: manufacturers unable to find cost incentive in brake shoe production
Industrieshares: bespoke services most likely to be found at more established outlets
Consumer attitudes: manufacturers need to be prepared should industry recovery happen
Brake drums
Volume: fragile industry to contract faster than any other neighboring country
Value: material costs dictate that brake drum production is not financially viable
Industrieshares: cheap parts and service is most important
Consumer attitudes: lack of economic stimulus could halt industry development altogether
Catalytic converters
Volume: fall in average mileage will impact replacement cycles
Value: alternative production methods could potentially affect component performance
Industrieshares: value for money remains the highest priority among motorists
Consumer attitudes: economic instability causes driving to be seen as a luxury
Exhaust systems
Volume: volume set to decline as consumers see no reason for replacement
Value: exhaust system longevity set to increase, leading to declining market sales
Industrieshares: industry set to remain dominated by traditional channels
Consumer attitudes: the increasing price of exhaust systems will not stop the decline in market sales
Shock absorbers
Volume: continuing economic problems are burdening the shock absorber industry
Value: value of the industry set to decline as shock absorber longevity increases
Industrieshares: traditional channels continue to be preferred as industry shares remain stable
Consumer attitudes: price sensitive consumers will look to purchase less expensive shock absorbers
Windscreen wiper blades
Volume: volume of sales set to recover as consumers are forced to return to the industry
Value: value set to see small growth as sales increase
Industrieshares: traditional channels to continue their dominance despite increasing price sensitivity
Consumer attitudes: overall industry spend to decline alongside the price of windscreen wiper blades
Starter batteries
Volume: consumers defer replacement of exhaust systems to save money
Value: Greek consumers' austerity continues to influence declining market sales
Industrieshares: increasing sales not fostering competition, as traditional channels continue to dominate
Consumer attitudes: consumers spending less in the aftermarket will lead to a decline in starter battery sales
CROATIA
Brake pads
Volume: the benefits of EUR pean Union accession to be felt almost immediately
Value: suppliers look to maximize profit margins during surge in demand
Industrieshares: an influx of suppliers provides consumers with a wider choice of components
Consumer attitudes: economic recovery will help stabilize replacement rates
Brake discs
Volume: higher disposable income making components more affordable
Value: price increases made possible due to strong demand
Industrieshares: garages are able to exploit the high supply of components
Consumer attitudes: replacement cycles could be reset during periods of high demand
Brake shoes
Volume: technological changes put the brakes on industry development
Value: profit maximization seen as a potential missed opportunity
Industrieshares: the large number of distributors sways consumer preference
Consumer attitudes: better quality goods set to become more affordable
Brake drums
Volume: older technologies set to be gradually phased out
Value: low unit prices contribute to declining industry worth
Industrieshares: established sales outlet preferences apparent across all brake components
Consumer attitudes: lack of demand will force manufacturers to reconsider
Catalytic converters
Volume: a decreasing average vehicle age will potentially extend replacement cycles
Value: historically low unit prices unable to stimulate local demand
Industrieshares: price sensitivity determines sales channel preference
Consumer attitudes: reluctance to maintain concealed components is evident in Croatia
Exhaust systems
Volume: increased longevity of exhaust systems aids decline in sales
Value: market sales will fall at a lower rate than sales due to price increases
Industrieshares: garages set to continue to lead the way as their industry share increases
Consumer attitudes: reduced spending on exhaust systems despite overall aftermarket spending increasing
Shock absorbers
Volume: volume decreases as Croatians seek to use shock absorbers for longer
Value: market sales will decline at a lower rate than sales due to shock absorber price increases
Industrieshares: preference for garages set to continue as industry share rises
Consumer attitudes: shock absorber market sales to decline despite a rise in the amount spent per vehicle
Windscreen wiper blades
Volume: volume of sales set to increase as consumers return to the aftermarket
Value: consumers returning to the aftermarket to purchase wiper blades will help market sales growth
Industrieshares: consumers show preference for professional channels as garages increase their industry share
Consumer attitudes: aiming to reduce spend will lead to lower value against higher volume
Starter batteries
Volume: increasing importance of starter batteries leads to increasing volume
Value: value of the industry increases above volume of sales as prices rise
Industrieshares: garages set to remain the dominant channel as their industry share increases
Consumer attitudes: increasing spend per vehicle will help boost starter battery sales
SLOVENIA
Brake pads
Volume: a robust automotive segment leads to strong demand for goods
Value: manufacturers unable to avoid passing on production costs
Industrieshares: motorists remain cost sensitive despite projection economic prosperity
Consumer attitudes: suppliers need to be mindful of industry saturation being reached
Brake discs
Volume: aftermarket set to benefit from recent period of deferral
Value: suppliers look to exploit sudden rises in demand
Industrieshares: price is more influential than service
Consumer attitudes: component longevity set to rise due to changes in consumer behavior
Brake shoes
Volume: motorists start to consider long-term future options
Value: manufacturers will look to recover costs incurred through expensive production
Industrieshares: vehicle age largely dictates sales channel preference
Consumer attitudes: financial stability instigates change in customer behavior
Brake drums
Volume: scrappage is likely to occur before replacement cycles are completed
Value: low market sales attributed to falling demand
Industrieshares: escalating production costs force motorists to consider cheaper outlets
Consumer attitudes: increasingly redundant technology spells bleak aftermarket outlook
Catalytic converters
Volume: economic prosperity will lead to a rise in demand
Value: motorists are increasingly favoring different types of catalytic converter
Industrieshares: high demand leads to a wider range of sales channel options
Consumer attitudes: aftermarket future could depend on a change in attitude toward alternative fuels
Exhaust systems
Volume: declining sales attributed to continuing consumer deferral
Value: the value of the industry declined as exhaust system longevity improved
Industrieshares: vehicle manufacturer networks gain industry share as garages' share falls
Consumer attitudes: exhaust system price increases to offset sales volume reductions
Shock absorbers
Volume: improved manufacturing leads to increased longevity as industry volume declines
Value: the value of the industry will increase despite the number of shock absorbers sold declining
Industrieshares: a rise d number of new vehicles leads to consumers returning to vehicle dealerships for parts
Consumer attitudes: increasing price of shock absorbers helps value grow despite declining sales
Windscreen wiper blades
Volume: small increase in sales volume projection as the industry begins to recover
Value: product improvements lead to increasing market sales
Industrieshares: garages lose industry share but remain the most favored sales channel
Consumer attitudes: the wiper blade industry will benefit from increased aftermarket spending
Starter batteries
Volume: industry for starter batteries recovers as demand increases
Value: increasing new vehicle registrations
Industrieshares: consumers look to alternative channels as garages' industry share declines
Consumer attitudes: overall industry spend set to increase alongside rising price of starter batteries
APPENDIX
Definitions
Methodology
Further reading
Ask the analyst
Datamonitor's Global Automotive Proposition
Component Insight reports
Channel Insight reports
Strategic Insight reports
Consumer Insight reports
Databases
Disclaimer
TABLES
Table: Southern EUR pe: brake industry s
Table: Southern EUR pe: catalytic converter and exhaust system industry s
Table: Southern EUR pe: other wear and tear component industry s
Table: Portugal brake pads snapshot
Table: Portugal brake pads: distribution industry shares, 2011
Table: Portugal brake discs snapshot
Table: Portugal brake discs: distribution industry shares, 2011
Table: Portugal brake shoes snapshot
Table: Portugal brake shoes: distribution industry shares, 2011
Table: Portugal brake drums snapshot
Table: Portugal brake drums: distribution industry shares, 2011
Table: Portugal catalytic converters snapshot
Table: Portugal catalytic converters: distribution industry shares, 2011
Table: Portugal exhaust systems snapshot
Table: Portugal exhaust systems: distribution industry shares, 2011
Table: Portugal shock absorbers snapshot
Table: Portugal shock absorbers: distribution industry shares, 2011
Table: Portugal windscreen wiper blades snapshot
Table: Portugal windscreen wiper blades: distribution industry shares, 2011
Table: Portugal starter batteries snapshot
Table: Portugal starter batteries: distribution industry shares, 2011
Table: Greece brake pads snapshot
Table: Greece brake pads: distribution industry shares, 2011
Table: Greece brake discs snapshot
Table: Greece brake discs: distribution industry shares, 2011
Table: Greece brake shoes snapshot
Table: Greece brake shoes: distribution industry shares, 2011
Table: Greece brake drums snapshot
Table: Greece brake drums: distribution industry shares, 2011
Table: Greece catalytic converters snapshot
Table: Greece catalytic converters: distribution industry shares, 2011
Table: Greece exhaust systems snapshot
Table: Greece exhaust systems: distribution industry shares, 2011
Table: Greece shock absorbers snapshot
Table: Greece shock absorbers: distribution industry shares, 2011
Table: Greece windscreen wiper blades snapshot
Table: Greece windscreen wiper blades: distribution industry shares, 2011
Table: Greece starter batteries snapshot
Table: Greece starter batteries: distribution industry shares, 2011
Table: Croatia brake pads snapshot
Table: Croatia brake pads: distribution industry shares, 2011
Table: Croatia brake discs snapshot
Table: Croatia brake discs: distribution industry shares, 2011
Table: Croatia brake shoes snapshot
Table: Croatia brake shoes: distribution industry shares, 2011
Table: Croatia brake drums snapshot
Table: Croatia brake drums: distribution industry shares, 2011
Table: Croatia catalytic converters snapshot
Table: Croatia catalytic converters: distribution industry shares, 2011
Table: Croatia exhaust systems snapshot
Table: Croatia exhaust systems: distribution industry shares, 2011
Table: Croatia shock absorbers snapshot
Table: Croatia shock absorbers: distribution industry shares, 2011
Table: Croatia windscreen wiper blades snapshot
Table: Croatia windscreen wiper blades: distribution industry shares, 2011
Table: Croatia starter batteries snapshot
Table: Croatia starter batteries: distribution industry shares, 2011
Table: Slovenia brake pads snapshot
Table: Slovenia brake pads: distribution industry shares, 2011
Table: Slovenia brake discs snapshot
Table: Slovenia brake discs: distribution industry shares, 2011
Table: Slovenia brake shoes snapshot
Table: Slovenia brake shoes: distribution industry shares, 2011
Table: Slovenia brake drums snapshot
Table: Slovenia brake drums: distribution industry shares, 2011
Table: Slovenia catalytic converters snapshot
Table: Slovenia catalytic converters: distribution industry shares, 2011
Table: Slovenia exhaust systems snapshot
Table: Slovenia exhaust systems: distribution industry shares, 2011
Table: Slovenia shock absorbers snapshot
Table: Slovenia shock absorbers: distribution industry shares, 2011
Table: Slovenia windscreen wiper blades snapshot
Table: Slovenia windscreen wiper blades: distribution industry shares, 2011
Table: Slovenia starter batteries snapshot
Table: Slovenia starter batteries: distribution industry shares, 2011
FIGURES
Figure: Portugal brake pads: industry volume and replacement rate
Figure: Portugal brake pads: labor and parts value
Figure: Portugal brake pads: spend per vehicle and spend per component
Figure: Portugal brake discs: industry volume and replacement rate
Figure: Portugal brake discs: labor and parts value
Figure: Portugal brake discs: spend per vehicle and spend per component
Figure: Portugal brake shoes: industry volume and replacement rate
Figure: Portugal brake shoes: labor and parts value
Figure: Portugal brake shoes: spend per vehicle and spend per component
Figure: Portugal brake drums: industry volume and replacement rate
Figure: Portugal brake drums: labor and parts value
Figure: Portugal brake drums: spend per vehicle and spend per component
Figure: Portugal catalytic converters: industry volume and replacement rate
Figure: Portugal catalytic converters: labor and parts value
Figure: Portugal catalytic converters: spend per vehicle and spend per component
Figure: Portugal exhaust systems: industry volume and replacement rate
Figure: Portugal exhaust systems: labor and parts value
Figure: Portugal exhaust systems: spend per vehicle and spend per component
Figure: Portugal shock absorbers: industry volume and replacement rate
Figure: Portugal shock absorbers: labor and parts value
Figure: Portugal shock absorbers: spend per vehicle and spend per component
Figure: Portugal windscreen wiper blades: industry volume and replacement rate
Figure: Portugal windscreen wiper blades: labor and parts value
Figure: Portugal windscreen wiper blades: spend per vehicle and spend per component
Figure: Portugal starter batteries: industry volume and replacement rate
Figure: Portugal starter batteries: labor and parts value
Figure: Portugal starter batteries: spend per vehicle and spend per component
Figure: Greece brake pads: industry volume and replacement rate
Figure: Greece brake pads: labor and parts value
Figure: Greece brake pads: spend per vehicle and spend per component
Figure: Greece brake discs: industry volume and replacement rate
Figure: Greece brake discs: labor and parts value
Figure: Greece brake discs: spend per vehicle and spend per component
Figure: Greece brake shoes: industry volume and replacement rate
Figure: Greece brake shoes: labor and parts value
Figure: Greece brake shoes: spend per vehicle and spend per component
Figure: Greece brake drums: industry volume and replacement rate
Figure: Greece brake drums: labor and parts value
Figure: Greece brake drums: spend per vehicle and spend per component
Figure: Greece catalytic converters: industry volume and replacement rate
Figure: Greece catalytic converters: labor and parts value
Figure: Greece catalytic converters: spend per vehicle and spend per component
Figure: Greece exhaust systems: industry volume and replacement rate
Figure: Greece exhaust systems: labor and parts value
Figure: Greece exhaust systems: spend per vehicle and spend per component
Figure: Greece shock absorbers: industry volume and replacement rate
Figure: Greece shock absorbers: labor and parts value
Figure: Greece shock absorbers: spend per vehicle and spend per component
Figure: Greece windscreen wiper blades: industry volume and replacement rate
Figure: Greece windscreen wiper blades: labor and parts value
Figure: Greece windscreen wiper blades: spend per vehicle and spend per component
Figure: Greece starter batteries: industry volume and replacement rate
Figure: Greece starter batteries: labor and parts value
Figure: Greece starter batteries: spend per vehicle and spend per component
Figure: Croatia brake pads: industry volume and replacement rate
Figure: Croatia brake pads: labor and parts value
Figure: Croatia brake pads: spend per vehicle and spend per component
Figure: Croatia brake discs: industry volume and replacement rate
Figure: Croatia brake discs: labor and parts value
Figure: Croatia brake discs: spend per vehicle and spend per component
Figure: Croatia brake shoes: industry volume and replacement rate
Figure: Croatia brake shoes: labor and parts value
Figure: Croatia brake shoes: spend per vehicle and spend per component
Figure: Croatia brake drums: industry volume and replacement rate
Figure: Croatia brake drums: labor and parts value
Figure: Croatia brake drums: spend per vehicle and spend per component
Figure: Croatia catalytic converters: industry volume and replacement rate
Figure: Croatia catalytic converters: labor and parts value
Figure: Croatia catalytic converters: spend per vehicle and spend per component
Figure: Croatia exhaust systems: industry volume and replacement rate
Figure: Croatia exhaust systems: labor and parts value
Figure: Croatia exhaust systems: spend per vehicle and spend per component
Figure: Croatia shock absorbers: industry volume and replacement rate
Figure: Croatia shock absorbers: labor and parts value
Figure: Croatia shock absorbers: spend per vehicle and spend per component
Figure: Croatia windscreen wiper blades: industry volume and replacement rate
Figure: Croatia windscreen wiper blades: labor and parts value
Figure: Croatia windscreen wiper blades: spend per vehicle and spend per component
Figure: Croatia starter batteries: industry volume and replacement rate
Figure: Croatia starter batteries: labor and parts value
Figure: Croatia starter batteries: spend per vehicle and spend per component
Figure: Slovenia brake pads: industry volume and replacement rate
Figure: Slovenia brake pads: labor and parts value
Figure: Slovenia brake pads: spend per vehicle and spend per component
Figure: Slovenia brake discs: industry volume and replacement rate
Figure: Slovenia brake discs: labor and parts value
Figure: Slovenia brake discs: spend per vehicle and spend per component
Figure: Slovenia brake shoes: industry volume and replacement rate
Figure: Slovenia brake shoes: labor and parts value
Figure: Slovenia brake shoes: spend per vehicle and spend per component
Figure: Slovenia brake drums: industry volume and replacement rate
Figure: Slovenia brake drums: labor and parts value
Figure: Slovenia brake drums: spend per vehicle and spend per component
Figure: Slovenia catalytic converters: industry volume and replacement rate
Figure: Slovenia catalytic converters: labor and parts value
Figure: Slovenia catalytic converters: spend per vehicle and spend per component
Figure: Slovenia exhaust systems: industry volume and replacement rate
Figure: Slovenia exhaust systems: labor and parts value
Figure: Slovenia exhaust systems: spend per vehicle and spend per component
Figure: Slovenia shock absorbers: industry volume and replacement rate
Figure: Slovenia shock absorbers: labor and parts value
Figure: Slovenia shock absorbers: spend per vehicle and spend per component
Figure: Slovenia windscreen wiper blades: industry volume and replacement rate
Figure: Slovenia windscreen wiper blades: labor and parts value
Figure: Slovenia windscreen wiper blades: spend per vehicle and spend per component
Figure: Slovenia starter batteries: industry volume and replacement rate
Figure: Slovenia starter batteries: labor and parts value
Figure: Slovenia starter batteries: spend per vehicle and spend per component

Companies mentioned

CMS Energy Corporation, Hutchison 3G UK Limited