Automotive parts market worth billions of dollars

1、 Overview of the automotive parts industry in major international markets

The development of the automotive retail industry in the following three main export market countries is:

·EU market. The automotive retail industry in major European markets is expected to experience good and stable development in the next five years, and these markets are generally facing an increase in car age.

·The Japanese market. The growth rate of the Japanese market will slow down after experiencing rapid growth in the first five years. In addition, the fluctuation of the Japanese yen exchange rate also brings uncertainty to Japan's import industry.

·North American market. The North American market will continue to be the largest automotive parts market in the Western market.

Looking at the 2023 automobile market in the following countries, it can be seen that although consumer confidence is insufficient, the growth of automobile consumption is stable.

·The US consumer market capacity has recovered. The sales of new and used cars in 2023 increased by 13% year-on-year; Starting from 2020, the increase in the number of old cars due to insufficient supply chain will continue to have a ripple effect; In 2023, inflation in the United States will be under control, and consumer confidence will rebound.

·The UK consumer market lacks confidence, but the automotive industry is strong. In 2023, British consumers will continue to suffer from high inflation, and it is expected that low consumer confidence will continue until after 2024; Car sales have increased for 9 consecutive months, with a year-on-year increase of 12%.

·The German market needs to take early action. Car sales have increased for six consecutive months, with YTD increasing by 14%; The winter automotive parts market in Germany started earlier than other markets, and promotional activities should start in October.

·French car sales have increased, with YTD increasing by 15%.

Japanese car sales achieved a year-on-year growth of 23% in the first seven months, marking the 11th consecutive month of growth.

·There is a shortage in the Australian market. Car sales have increased, with YTD increasing by 8%; The Australian automotive parts market is plagued by shortages of stock and maintenance workers, and car repairs often require waiting.

2、 Guidelines for major overseas market placements in the fourth quarter of 2023

The November December launch should follow the following common automotive parts demand scenarios in the Western market:

·Medium to long distance travel. Driving is the preferred choice for long-distance travel among consumers in some Western countries; Some accessories used for long-distance travel have entered their peak period (such as first aid kits, chargers, remote start keys)

·Ice and snow scenes. The main consumer markets in the Northern Hemisphere have the habit of changing snow tires and installing anti-skid chains in winter; Some markets may have mandatory government requirements for the use of these ice and snow anti slip products; This demand starts in October and usually reaches its peak from November to December

·Maintenance replacement. During holidays, it is generally not the main peak time for car maintenance, but the demand for replacement and updating of some accessories (such as headlights and wipers) has significantly increased due to the increase in usage time and intensity.

Next, Hugo Cross border will use Google's internal search data and search prediction model to analyze which categories should be focused on in the main target countries during the 2023 promotion period, and analyze the top players in the market to selectively showcase their unique strategies.

Consumables and Replacement Parts for US Market Demand Analysis:

The demand for maintenance has increased. In 2023, the average age of cars in North America continued to rise to 12.5 years (an increase of 3 months from the average in 2022) due to the impact of reduced new car sales due to inflation and a slowdown in car generational replacement. The winter promotion is also a common time for consumers to replace and upgrade their car lights, with a 25% increase in active search volume.

Regarding consumables and replacement parts, it is necessary to know the following information: accounting for over 50% of all automotive parts demand, engines accounting for 25% of all automotive parts demand, a month on month increase of 10% during the major promotion period, and electronic appliances/lights accounting for 20-25% of all automotive parts demand

·Ice and Snow Scenarios of US Market Demand Analysis:

Windshield wipers+snow tires/anti slip chains/floor mats. The United States is a country greatly affected by ice and snow weather, and consumers have a good understanding of accessories in ice and snow environments. Winter ice and snow products have entered a peak demand period: the demand for snow tires has increased by 100% compared to the off-season, the demand for anti-skid chains has increased by more than 400% compared to the off-season, the demand for wipers has increased by 40%, and the demand for foot mats has increased by 25%.

Regarding accessories for ice and snow scenes, it is important to know the following information: demand has increased by five times compared to the off-season, and November January is a period of concentrated and explosive demand.

·Travel Scenario for US Market Demand Analysis:

Travel accessories: remote start/key/emergency kit. The proportion of long-distance travel by car has increased between November and December (compared to daily travel), and the special situations faced during long-distance travel (key loss, remote activation in cold winter, emergency situations) have spurred the demand for such travel accessories.

Regarding travel scene accessories, it is important to know the following information: During holidays in the United States, the scale of long-distance driving trips reached 102 million people, and December 23rd to January 2nd was the peak of travel and the end of procurement. Among all long-distance trips, driving accounted for 90%.

·Market competition situation: The top automotive parts players in the United States have strong online and offline capabilities, and the competition is highly homogeneous. The main top sellers are Autozone (18% market share), O ` Reilly (16% market share), Genuine Parts Co (14% market share), and Advance Auto Parts (12% market share).