Automotive Enthusiasts & Vehicle Trends
The enthusiast automotive aftermarket is large, global, and growing. It is driven by a growing population of vehicles on the road, consumer demand for mass personalization, power and self-expression, and original equipment vehicle power plant and styling changes aimed at achieving tightening fuel economy standards and changing consumer taste. As of 2017 in the US there were 268.8M registered vehicles on the road being driven by 214M registered drivers. Nearly 60M of those drivers self-identify themselves as automotive enthusiast – specialty equipment market participants.
Of the 268.8M registered vehicles on the road in the US in 2017, 52% were Light Trucks, 46% were passenger cars, and 2% were heavy duty trucks/busses/motorcycles or other specialty vehicles. Nearly 76% of the vehicles on the road today have either a four (4) cylinder or six (6) cylinder power plant. Four cylinder engines are growing in popularity at the expense of both six and eight cylinder power plants. Nearly 90% of the vehicles on the road in the US utilize gasoline power plants. Of the 268.8M vehicles on the road, 68% (or 181.9M) are post-OBDII vehicles (MY 1996 and newer vehicles).
In total, we compete in a $1.1B segment of the $43B Enthusiast/Specialty Parts Marketplace. We market to a large and growing population of automotive enthusiast with the 15 though 39 years old demographic representing 57.5% of performance enthusiast (but only 33.5% of the total population).
Late Model Vehicles
The enthusiast market and the demand for quality tuning solutions has been supercharged with the growth of small displacement turbo charged vehicles. Since 2006, new car producers have been increasingly adopting gasoline turbo charging as their power plant of choice for enthusiast focused vehicles. Turbo Charged small displacement gasoline engine use by original equipment vehicle manufacturers has grown by a 29.4% CAGR over the past 13 years. The total number of new gasoline powered turbo charged vehicles sold in the US is expected to reach almost six million new vehicles per year by 2019. These vehicles lend themselves to performance modification/tuning and are a key focus of our company.