The results of the 2023 Year-End Sectoral Evaluation Survey by the Aftermarket Automotive Products and Services Association (OSS) reveal that the aftermarket automotive market continued its upward trend throughout 2023, with approximately 8.82% growth expected in domestic sales in 2024. Furthermore, 48.4% of association members are planning investments in the next three months.
The survey indicated that domestic sales in the last quarter of 2023 showed an average increase of 15.11% in US dollars compared to the same quarter of the previous year. Distributor members experienced a 12.59% increase in dollar-based sales during this period, while for producer members, this rate reached 18.92%.
Looking ahead to 2024, the survey forecasts an 8.82% increase in domestic sales in the sector, with an average 5.38% increase in sales in the first quarter compared to the same period in the previous year.
Despite no change in the collection processes in 2023, according to 25.8% of respondents, 19.4% perceived an improvement, and 60, which was the survey average in 2022, dropped to 52.7 in 2023.
Regarding employment, 63.4% of participating members increased their workforce in 2023, 28% maintained their employment levels, and 8.6% reported a decrease compared to 2022. Employment levels remained relatively similar for both producer and distributor members.
The survey highlighted the industry’s challenges, with 69.9% of members identifying “exchange rates and currency appreciation” as the primary problem in 2023. The occurrence of “supply problems” decreased compared to the previous year.
For 48.4% of members, “freight costs and delivery issues” were considered the second most significant challenge for the sector. Participants also identified cash flow problems (46.2%), changes in regulations (36.6%), and loss of business and turnover (14%) as important issues.
The survey delved into the sector’s investment plans, revealing that 48.4% of members are considering new investments in the next three months, surpassing the previous period. Producer members planning investments increased from 43.8% to 56.8%, while for distributor members, this rate decreased from 50% to 42.9%. Additionally, 17.2% of respondents predicted improvement in the sector in the next three months, while 32.2% anticipated a decline.
The average capacity utilization rate for manufacturers in 2023 was 81.62%, up from 74.48% in 2022. In the last quarter of 2023, production increased by 16.49% compared to the previous quarter, and exports showed a 13.38% increase compared to the last quarter of 2022.
OSS President Ali Özçete, providing insights in the statement, described 2023 as a record-breaking year for the automotive and aftermarket sectors, emphasizing the significance of the increased sales of electric vehicles compared to 2022.
He noted that the semiconductor chip problem, which significantly affected the automotive sector at the beginning of 2023, had been completely resolved by the end of 2023 and into 2024.
Looking ahead to 2024, Özçete highlighted crucial issues affecting the aftermarket automotive sector, such as the production of spare parts for electric and autonomous vehicles, digitization, and the widespread use of automation and robotics.
Expressing the sector’s commitment to meeting evolving needs and increasing capacity, Özçete mentioned that the Automechanika 2024 Fair, scheduled for May 23-26, would provide a platform to showcase not only products and services but also share insights on various technological developments within the automotive industry.
source: aa.com.tr / prepared by Melisa Beğiç