Noted Canadian research firm DesRosiers Automotive Consultants, working in conjunction with the Automotive Aftermarket Retailers of Ontario (AARO), reports that building on growth in 2024, sentiment is for continued growth in 2025.

“The automotive aftermarket has seen strong performances even amidst the turbulence of the past few years,” commented Andrew King, Managing Partner at DAC.

“2024 was no exception with most aftermarket retailers seeing robust sales increases. However, challenges still linger in the form of parts prices and availability, as well as the ongoing struggle to find qualified technicians.”

The firm reached out to get a better understanding of the Canadian automotive aftermarket, its performance in 2024, and the expectations for 2025.

Comparing sales results in 2024 with 2023, the majority of respondents cited sales growth with 23% seeing growth of 1-5%, a further 23% noting 6-10%, and 15% seeing even higher growth.

In comparison to pre-pandemic, 72% of respondents noted that their sales are above those levels with a further 20% seeing similar performances. Only 9% of respondents cited sales that have remained below pre-pandemic levels.

When asked about their expectations for 2025, the largest portion of respondents at 43% noted an expected increase of 1-5% with 20% expecting an increase of 6-10% and a further 13% expecting even higher growth.

A total of 20% of respondents expect no change from 2024 with just 4% forecasting sales decreases.

Comparing results for specific types of work, tire changes and sales was the most stable category with the lowest percentage of respondents indicating either sales growth or decline.

Compared to previous years, parts supply issues appear to have slightly improved although this issue remains a prominent concern for aftermarket shops.

For parts coming from jobbers, 51% of respondents noted supply problems with 49% noting no issues. For parts supply from new vehicle dealers, only 40% of respondents noted no issues against 60% that cited concerns.

For 2024, aftermarket retailers largely pointed towards rising prices of parts from their suppliers – only 12% of respondents noted no change in pricing from jobbers, and 14% in terms of parts from new vehicle dealers. In both cases, price increases of 6-10% were the most commonly cited change.

On the human resource front, respondents were asked how their ability to find qualified technicians changed in 2024. None of the respondents noted the process getting easier. Meanwhile, 47% saw no change against 53% that noted it has become more difficult.