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Study Finds Consumers Keep Their Cars Longer

18 April 2000

Study Finds Consumers Keep Their Cars Longer

    NEW YORK, April 17 Sales in the automotive aftermarket
industry have been growing steadily for the past five-years, according to a
study published by Kalorama Information, a leading New York based market
research publisher.  The overall industry has expanded an estimated 17%.  Hard
parts sales drove the industry's growth, increasing 4.2% annually since 1995.
The study projects that the industry will experience persistent growth for the
next five years, reaching $128 billion by 2004.
    According to the study, new car parts are becoming more advanced, and it
will be more difficult for the average person to repair their own cars.  This
trend is expected to put pressure on the Do It Yourself (DIY) segment of the
automotive aftermarket.  High-tech vehicle parts are more durable and need
less repair and replacement than their ancestors.  These parts will also be
considerably more expensive, a part that at one time cost around $5 could now
cost up to $45, thus motivating car owners to perform some repairs and
installations on their own.
    The study also found that more people own cars than ever before.  In 1997,
there were approximately 212 million registered vehicles, with each household
owning at least two cars or trucks.  Americans are driving a total of
2.56 billion miles a year, a 55% increase from 1993, and are keeping their
cars longer than ever before.  According to the study, consumers will spend an
average of $10,000 on maintenance over the span of twelve years.  Prolonged
ownership is reflective of high replacement costs; the average price of a new
car is around $20,000.  "The fact that people are keeping their cars longer
fuels the growth of the automotive aftermarket.  To keep them running,
consumers will continue to invest increasingly more money in repairs rather
than new car sales," said Claire Madden, VP Sales and Marketing at Kalorama
Information.  "Mandatory vehicle inspection along with stricter emissions
controls will also enhance growth over the next few years."

    About Kalorama Information
    Kalorama Information is a leading publisher of market research and
intelligence reports for key executives, offering essential data and concise
analysis.  Over 70 studies a year target healthcare and pharmaceuticals,
packaged goods, personal care, consumer goods, demographics, industrial goods,
and food and beverages.  For over 20 years, the company has been providing
critical information to decision makers across the U.S. including Kraft
General Foods, Nabisco, Pfizer, Bristol-Myers Squibb, Procter and Gamble, and
Andersen Consulting.  For more information call MarketResearch.com at
800-298-5699 or visit the company's web site at http://www.marketresearch.com.