Tire Dealer Study 4&15&.#&3 Auxiliary Lighting PHILIPS Motor City’s recovery could attract aftermarket manufacturing Brakes FEDERAL MOGUL Chassis RAYBESTOS t$MJDLPODFUP [PPNJO t$MJDLIPMEUP NPWFQBHFBSPVOE Fuel Pumps DOMESTIC: INTERNATIONAL: AIRTEX *OEVTUSZ/FXT *OUFSOBUJPOBM/FXT )PU"VUP1SPEVDUT (MPCBM&WFOUT t%JTUSJCVUJPOt$PMMJTJPO3FQBJSt4FSWJDF3FQBJSt5FDIOJDJBOT 0QJOJPO$PNNFOUBSZ &WFOUT$PWFSBHF 4QFDJBM3FQPSUT *NQPSU&YQPSU(VJEF Got something to say? Go to workshop.searchautoparts.com. Analysis by market Opinion REPLACEMENT Tire Vendors: Motor City’s recovery can attract Donny Seyfer Dealer Blaming your supplier aftermarket manufacturing. Study EMERGING Technology: Mevotech boosts efficiency. INTERNATIONAL Vendors: Inspired by the market, auto industry inaugurates innovations in Brazil. AASA’s OAC Auxiliary Getting the most CUSTOMERS Lighting from AAPEX PHILIPS Dealerships: Vehicle sales, dealer revenues continue to climb in 2012. Research Tire Dealer Study: This year’s survey of Bob Moore tire dealers shows that they are reaching out Brakes Shapes of things to FEDERAL to advertise to customers through their web come MOGUL sites, direct email and social media. n 2001, Goldman Sachs, the U.S. Online Special Reports multinational investment banking firm, coined the acronym “BRIC” FROST & SULLIVAN to describe the four countries Tires: After a slow start, the demand for tire Mark Smith I Insurance and Chassis of Brazil, Russia, India and China purchases through digital platforms seems RAYBESTOS spaghetti sauce who, it predicted, would rank in the to be growing, and prospects for continued PHOTO COURTESY: THINKSTOCK PHOTO COURTESY: world’s top six economies by 2032. growth of online sales appear bright. As if to confirm this prediction it was announced in early 2012 that Brazil had overtaken the UK to become the AFTERMARKET BUSINESS WORLD (Digital ISSN 1938-0593) is published 12 times yearly by Advanstar Communications Inc., 131 W First St., Duluth MN Brazil’s high import duties, low-cost suppliers 55802-2065. Subscription rates: digital only $65 for 1 year. ©2013 Advanstar Communications Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any world’s sixth largest economy. means, electronic or mechanical including by photocopy, recording, or information storage and retrieval without permission in writing from the publisher. 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More articles by ANDY ADAMS RELATED articles AUTHOR bio 2 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com $SBDLJOHUIFNBSLFU Tire Dealer Study Brazil’s import tariffs on auto parts can range from 14 percent to 20 percent. Despite its relentless economic growth, Brazil’s In July 2013 the top four selling brands of average per capita income of $11,000 per cars in Brazil were 1- Fiat, 2- Chevrolet, 3- Volkswagen, 4- Ford. Luxury car sales have annum still remains less than one third that of the Auxiliary UK’s. However, even this disparity is gradually grown rapidly with the country’s southeast Lighting PHILIPS being eroded by an ever-increasing middle class dominating in terms of automobile fleet and with greater spending power. As of November new vehicle registrations. Sao Paulo is the lead- 2012 the Brazilian middle class was estimated at ing state in the region and has the greatest 52 percent of the total population. number of vehicles. With the largest economy in South America, The most popular types of vehicles are those Brazil looked set to cement its high status on with flex fuel systems with their multi choice Brakes the world stage with its hosting of the football of refuelling options. This popularity is encour- FEDERAL MOGUL world cup in 2014 and the Olympics in 2016. aged by the Brazilian government’s support for However, this good news for the country’s biofuel usage. economy has been marred in recent months In 2011 Brazil overtook Germany to become by widespread riots, which resulted in an 11.1 the fourth largest vehicle market in the world percent drop in the sales of new vehicles com- with sales of some 3.6 million cars and light pared to the same time last year. trucks. Aftermarket sales, however, have not While a major percentage of Brazil’s output grown in proportion. Chassis RAYBESTOS For repairs that are right the first time, your best bet is an is focused on agriculture and the processing Brazil has the fifth largest population in the original equipment part. NTK Oxygen Sensors are original equipment on more vehicles worldwide than any other brand. of foodstuffs, its most important manufactured world with an expanding wealthier middle class For details, go to NGKsparkplugs.com items are automobiles. Some of the world’s with increased spending power and a grow- major automobile manufacturers including ing passion for classic cars, off road racing and Volkswagen, Ford, Fiat, Honda and Toyota have large manufacturing plants in Brazil. Become a fan on Facebook t$MJDLPODFUP[PPNJO facebook.com/NGKSparkplugs The World Leader Fuel Pumps t$MJDLIPMEUPNPWFQBHFBSPVOE AIRTEX Industry News Hot Auto Products 05 International Trends 09 Technology Solutions 13 Bob Moore Sign up for weekly Distribution e-newsletters SEPTEMBER Join our Community Contact Us 07 Vendor Market Trends 11 Dealership Market Trends 16 Mark Smith 2013 3 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com $SBDLJOHUIFNBSLFU Tire Dealer Study hot rods. This interest in vehicle customization U.S., Colombia, Germany, Japan, Argentina, is offset by Brazil’s various vague restrictive China, Canada and the UK. In terms of trading laws governing vehicle modification. Despite position, China ranks at number one, account- the many restrictions in force, vehicle custom- ing for some 14 percent of Brazil’s trade flows. ization continues to grow in popularity in Brazil While Brazil’s main exports to China are iron with aftermarket products most in demand ore, soybeans and crude oil, manufactured items are China’s main imports into Brazil. This being, tires, wheels, audio systems, suspen- Auxiliary sion parts, performance items, turbochargers, has led to Brazil’s local manufacturing industry Lighting PHILIPS high flow air filters, ECU reprogramming and struggling to compete with China’s low produc- exhaust systems. tion costs advantage. With China’s advantage Car ownership in Brazil stands at 297 vehi- of cheaper production costs it can offset the cles per 1,000 people compared to 797 per Brazilian import taxes and tariffs, which make 1,000 in the US. With new car prices up to a U.S. auto parts expensive and practically unaf- third more expensive in Brazil compared to a fordable for the average Brazilian motorist. Brakes similar model in Europe, most of the car own- Import tariffs on auto parts can range from FEDERAL MOGUL ing public has to resort to the used car market. 14 percent to 20 percent with a further series Even though many of the second hand cars of taxes and import fees on top. With its vast, are in poor condition they are still a source of low salaried workforce, China can produce great pride for their owners. inexpensive quality aftermarket parts, often Music is a very important part of Brazilian with whole areas focused on the production of culture. Taken to the extreme, motorcycles one genre of item. often can be seen that have been retrofit- In order to overcome Brazil’s high import Chassis RAYBESTOS ted with stereo systems complete with large duties, some exporters to the country work speakers strapped to the vehicle. Despite this around these restrictions by bringing their prod- love of music, in 2011 70 percent of new vehi- ucts into Brazil via the Free Zone in Uruguay as cles were sold without a factory fitted in-car part of the Mercosor economic and entertainment system. ...CONTINUE READING ◽ Brazil’s main world trading partners are the t$MJDLPODFUP[PPNJO Fuel Pumps t$MJDLIPMEUPNPWFQBHFBSPVOE AIRTEX Industry News Hot Auto Products 05 International Trends 09 Technology Solutions 13 Bob Moore Sign up for weekly Distribution e-newsletters SEPTEMBER Join our Community Contact Us 07 Vendor Market Trends 11 Dealership Market Trends 16 Mark Smith 2013 4 AFTERMARKET BUSINESS WORLD www.SearchAutoParts.com International markets VENDORS HOW THE WORLD IS WIRED Tire Dealer *OTQJSFECZNBSLFU BVUPJOEVTUSZ Study JOBVHVSBUFTJOOPWBUJPOTJO#SB[JM BY JAMES E.