GROWTH ‘N’ GAINS
When considering size in terms of dollars, the overall Canadian light vehicle aftermarket grew significantly between 2021 and 2023, according to a new report from Desrosiers Automotive Consultants. From 2021 to 2023, DAC says the overall light vehicle aftermarket expanded from $22.5 billion in 2021 to $24.1 billion in 2023. Retail aftermarket parts saw an increase from $12.9 billion to $13.7 billion, while labour revenues rose from $9.6 billion to $10.4 billion during the same period. DAC also notes that, beneath this overall growth, there are “significant channel shifts” occurring in the aftermarket—particularly changing consumer maintenance patterns and the evolving structure of the vehicle fleet in terms of fuel types.
IS HERTZ HURTING?
Hertz is accelerating its plan to sell 100,000+ Tesla units, the rental company said during its second-quarter earnings call in July. The company initially hoped to sell the units for as low as US$20,000 each, but prices have now been dropped further in an effort to clear out stock. Hertz originally announced it was selling a third of its Tesla fleet in January 2024, due to “weak demand” and high repair costs. Hertz anticipates the “fleet overhaul” to be complete by the end of 2025.
BYD’S BOLD MOVE
Chinese automaker BYD has penned a letter to the Federal Government of Canada announcing its intentions to enter the Canadian EV market, despite tariffs on Chinese-made EVs. Consultants working with BYD Canada Co. filed a notice with the federal registry of lobbyists in July, stating the OEM was in discussions with Ottawa to “advise the government of Canada of matters related to the expected market entry of BYD into Canada for the sale of passenger electric vehicles, and the establishment of a new business,” according to a report from the Globe and Mail. The filing also mentioned that BYD was seeking discussions regarding the implication of tariffs on Chinese-made EVs.
WHAT’S NEW WITH WORLDPAC
Advance Auto Parts has sold its Worldpac unit for US$1.5 billion as part of the company’s latest attempt to streamline operations. Worldpac will be sold to Carlyle Group, a private equity firm that formerly owned Axalta Coatings Systems, in a deal expected to close by the end of 2024. The announcement came hours before Advance Auto Parts’ webcast to discuss Q2 2024 financial results, and shares dropped more than 15 percent when the company cut its annual forecast on the call. Annual sales and profit forecasts were cut due to lower parts demand and future anticipated maintenance-related headwinds and lower discretionary spending.
