Now Available - Auto Care Association · New E-tailing Study According to information presented in the Channel Forecast Model, e-tailing is the fastest growing retail sector in the

DIGITAL AUTO CARE

PRODUCT # 75052 / $200 MEMBERS / $500 NON-MEMBERS

2015EDITION

24thTHE SOURCE FOR AUTO CARE INDUSTRY INFORMATION

factbookDIGITAL AUTO CARE

PRODUCT # 75053 / $650 MEMBERS / $1,300 NON-MEMBERS

2015EDITION


TRENDS & ANALYSIS6 Channels / 16 Outlets 20 Markets / 80 Products 100s of Trends300+ PAGES

& LANG ANNUAL

factbook

Now Available

For more information, visit www.autocare.org.

EXECUTIVE SUMMARY

The Auto Care Association is offering, once again, our two most popular Market Intelligence reports in a versatile

electronic medium. Both the 2015 editions of the Auto Care Factbook and the Auto Care Factbook & Lang

Annual are digital. With this format comes faster access to information from any device with Internet connectivity.

While these publications retain both their traditional design and content, added value is provided through many

enhanced features such as key word search and direct links to spreadsheets and data supplier’s websites. As a

researcher, we know you will appreciate the higher levels of productivity plus an improved reading experience.

New value-added content highlights in this year’s edition include:

� U.S. Economic update by Dr. Timothy Nash, Northwood University;

� An extended Industry Forecast through 2017 by IHS Automotive, driven by Polk;

� An updated Program and Retail Distribution Summary by Babcox Media;

� An update on e-tailing by IMR and The Martec Group;

� An updated report from BB&T Capital Markets;

� Updated BodyShop Business: Industry Profile from Babcox Media;

� Updated vehicle registration tables and graphics by IHS Automotive, driven by Polk; and

� New Insights on the Chinese Auto Care Industry by Technomic Asia.

“The Auto Care Association makes every effort to exceed our members’ expectations

in all areas, especially with these flagship market intelligence publications,” said

Kathleen Schmatz, Auto Care Association president and CEO. “We continue to evolve

our Factbook in response to member requests and strive to stay at the forefront of

key industry trends. In addition to the new research material, our Factbook allows

members immediate access to valuable data and online resources through live

embedded hyperlinks. They can also download Excel-based files, charts, tables

and graphs that can be easily copied and re-used in presentations and reports.”

The Auto Care Association just released its flagship online publications, the Digital Auto Care Factbook 2015 along with the Digital Auto Care Factbook & Lang Annual 2015. This year’s market intelligence resources feature new and enhanced content to provide auto care industry businesses the latest and greatest industry information, trends and analysis.

DIGITAL AUTO CARE FACTBOOK EXECUTIVE SUMMARY

U.S. Auto Care Industry The U.S. auto care industry consists of the light vehicle, medium and heavy duty truck markets. The industry, having weathered the economic downturn, generated an estimated $317.2 billion in 2013 and is expected to reach $363.8 billion by 2017. The automotive sector is expected to lead the upturn, with sales of $273.4 billion in 2017, followed by the medium and heavy duty market with $90.4 billion in sales. This forecast is the product of the Auto Care Association and the Automotive Aftermarket Suppliers Association (AASA) Channel Forecast Model. The Channel Forecast Model is predicting a 3.4 percent compounded annual growth for the auto care industry through 2017. During the same period, the U.S. economy is projected to grow at an average of 4.9 percent, a mere 1.5 percent ahead of the auto care industry.

Mergers and Acquisition (M&A) Outlook for 2014 BB&T Capital Markets, a leading investment bank to the auto care industry, is predicting another strong year for mergers and acquisition (M&A) activities in 2014 in all segments of the industry. Industry segments that had faced declining M&A volume as a result of the recession, such as performance and accessories business, are finding success and will contribute to higher M&A activity in the broader auto care industry. These M&A activities will be driven by: the rising average age of vehicles at a record high 11.4 years, projected growth in the light vehicle fleet and new light vehicle sales expected to exceed $15 million in 2014. Since the 2008 economic recession that lead to Americans holding on to their aging vehicles a little bit longer, demand for new vehicles has been rising. Pent-up demand for vehicles

and consumer confidence produced record sales in 2013. More than 15 million new light vehicles were registered in 2013, which is 1.1 million more than last year. The forecast for new vehicle registrations is projected to exceed 16 million in 2014. As a result of increased new vehicle registrations, the number of vehicles on the road grew to 260.2 million in 2014; a 1.5 percent increase over a year earlier. Total light vehicles registrations accounted for 252.6 million units, while medium and heavy-duty trucks totaled 7.6 million of the 260.2 million total vehicle fleet. There is reason for optimism in the coming years, as more than 261 million vehicles are projected to be on the road by 2017. The fact that Americans continue to hold their cars longer bodes well for the auto care industry. For the fourth year in a row, the average age of passenger cars reached 11 years. Light truck longevity increased from 11 in 2012 to 11.4 years in 2014.

The American consumer continues to demonstrate a strong preference for import name plates. As a percent of total light vehicles in operation:

� Import car registrations increased from 37.1 percent of total cars in 2002 to 57.1 percent in 2014.

� Import light truck registrations increased from 15.7 percent of total light trucks in 2002 to 28.1 percent in 2014.

New E-tailing Study According to information presented in the Channel Forecast Model, e-tailing is the fastest growing retail sector in the auto care industry (6.9 percent CAGR from 2012 to 2017) and becoming a significant revenue stream for auto parts sales. But little solid data exists on the total size and makeup of this channel. A new study currently being developed by the Auto Care Association, IMR Inc. and The Martec Group will measure the online retail market for sales of auto care parts and some accessories

’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13

Source: BB&T Capital Markets

Source: IHS Automotive, driven by Polk’s NVPP database as of Dec. 31, 2013

Source: IHS Automotive, driven by Polk


New Light Vehicle Registrations, 2001-2013

2013 Mergers & Acquisitions Activity By Segment

47%

16%

2%

6%

7%

22% Suppliers

Distributors

Retailers

Professional Installers

Other

Collision

9,000

10,500

12,000

13,500

15,000

16,500

18,000

Source: Technomic Asia

2013 China Passenger Car Parc By Age(Total Market Units = 88.4 million)

46%6%

48% 1 to 3

4 to 9

> 9


2013 China Small Bus Parc By Age(Total Market = 14.1 million)

46% 54%1 to 3

4 to 9

9.0

9.5

10.0

10.5

11.0

11.5

2002 2014

Year

s

Average Age of Cars and Light Trucks, 2002-2014

Light Trucks

Passenger Cars

11.4 YearsAverage age of all light vehicles

All Light Vehicles

0%

20%

40%

60%

80%

U.S. Vehicle Population (VIO), 2002-2014(Percent of Total Light Vehicles)

2002 2014

% Import Cars

% Import Light Trucks

’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13







47%

16%

2%

6%

7%

22% Suppliers

Distributors

Retailers


Other

Collision

9,000

10,500

12,000

13,500

15,000

16,500

18,000



46%6%

48% 1 to 3

4 to 9

> 9



46% 54%1 to 3

4 to 9

9.0

9.5

10.0

10.5

11.0

11.5

2002 2014

Year

s


Light Trucks

Passenger Cars


All Light Vehicles

0%

20%

40%

60%

80%


2002 2014

% Import Cars


DIGITAL AUTO CARE


2015EDITION


TRENDS & ANALYSIS

6 Channels / 16 Outlets

20 Markets / 80 Products

100s of Trends

300+ PAGES

& LANG ANNUALfactbook


Auto Care Association members received a complimentary copy of the Digital Auto Care Factbook 2015 as a member benefit, along with three guest passes. While members can purchase additional copies at $200, the non-member price is $500. The Digital Auto Care Factbook & Lang Annual 2015 is also available for $650 to Auto Care Association members and $1,300 for non-members. To order any of these digital publications, visit www.autocare.org and click “What We Do,” then click on “Market Intelligence” and then the downloadable order form or contact member services at 301-654-6664.

and will serve as the foundation for the Auto Care Association to provide a unified estimate of online sales within the industry. Results of the project will provide benchmarks for member companies to determine online share, provide a comprehensive sizing of the online parts sales market and the understanding of trends in automotive parts e-tailing. The new research study is scheduled for release in mid-July 2014.

China’s Light Passenger Vehicle Auto Care Parc China’s light vehicle passenger parc reached a new milestone in 2013 breaking the 100 million unit level, thus ushering China into its “auto care era.” Strong new vehicle sales in 2013 of almost 19 million light passenger

vehicles continued to add fuel to the expanding auto care industry which grew 19 percent over 2012. To gauge the opportunity for services and repairs, it is imperative to consider vehicle age. In the last few years, as new vehicle sales have slowed from their past explosive, double digit growth rates and general vehicle aging has occurred, middle-aged vehicles between four and nine years old have grown rapidly. This age shift is accelerating opportunities for general repairs typically done between 50,000 and 100,000 miles, balancing the historically significant regular maintenance and light repair volume. This shift notwithstanding, China’s parc is still very young at an estimated average age of 4.2 years, compared to 11.4 years in the U.S.

’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13







47%

16%

2%

6%

7%

22% Suppliers

Distributors

Retailers


Other

Collision

9,000

10,500

12,000

13,500

15,000

16,500

18,000



46%6%

48% 1 to 3

4 to 9

> 9



46% 54%1 to 3

4 to 9

9.0

9.5

10.0

10.5

11.0

11.5

2002 2014

Year

s


Light Trucks

Passenger Cars


All Light Vehicles

0%

20%

40%

60%

80%


2002 2014

% Import Cars


’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13







47%

16%

2%

6%

7%

22% Suppliers

Distributors

Retailers


Other

Collision

9,000

10,500

12,000

13,500

15,000

16,500

18,000



46%6%

48% 1 to 3

4 to 9

> 9



46% 54%1 to 3

4 to 9

9.0

9.5

10.0

10.5

11.0

11.5

2002 2014

Year

s


Light Trucks

Passenger Cars


All Light Vehicles

0%

20%

40%

60%

80%


2002 2014

% Import Cars


’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13







47%

16%

2%

6%

7%

22% Suppliers

Distributors

Retailers


Other

Collision

9,000

10,500

12,000

13,500

15,000

16,500

18,000



46%6%

48% 1 to 3

4 to 9

> 9



46% 54%1 to 3

4 to 9

9.0

9.5

10.0

10.5

11.0

11.5

2002 2014

Year

s


Light Trucks

Passenger Cars


All Light Vehicles

0%

20%

40%

60%

80%


2002 2014

% Import Cars


’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 ’09 ’10 ’11 ’12 ’13







47%

16%

2%

6%

7%

22% Suppliers

Distributors

Retailers


Other

Collision

9,000

10,500

12,000

13,500

15,000

16,500

18,000



46%6%

48% 1 to 3

4 to 9

> 9



46% 54%1 to 3

4 to 9

9.0

9.5

10.0

10.5

11.0

11.5

2002 2014

Year

s


Light Trucks

Passenger Cars


All Light Vehicles

0%

20%

40%

60%

80%


2002 2014

% Import Cars


DIGITAL AUTO CARE

PRODUCT # 75052 / $200 MEMBERS / $500 NON-MEMBERS

2015EDITION


factbookDIGITAL AUTO CARE


2015EDITION


TRENDS & ANALYSIS6 Channels / 16 Outlets 20 Markets / 80 Products 100s of Trends300+ PAGES

& LANG ANNUAL

factbook


Documents

Now Available - Auto Care Association · New E-tailing Study According to information presented in the Channel Forecast Model, e-tailing is the fastest growing retail sector in the