More (Aged Vehicles), More Miles, More Drivers Equate to More Automotive M&A Opportunities

In its recent automotive aftermarket industry analysis report, the Automotive Aftermarket investment banking team at BGL shares its annual recap of the 2024 Aftermarket Week in Las Vegas, Nevada.

Following 2020-aka the first year of the COVID-19 pandemic-we continue to see increased usage and growth in the overall fleet of motor vehicles in the United States. The cumulative usage of cars has persistently grown year over year, with over 3.3 trillion cumulative miles driven. Moreover, there are currently 293 million vehicles in operation in the US. And due to technological improvements like increased features and content as well as the lingering effects of inflation, the average price of a new car has risen to over $48,000. As a benefit to the aftermarket, these relatively higher costs and higher quality builds have caused the car parc to age, with the average age of a car on the road now at 12.5 years as of 2023.

In our view, this creates favorable tailwinds for the automotive aftermarket industry as older, well-used vehicles tend to require more maintenance and are more likely to be customized or upgraded as owners look to extend the useful life of their vehicles.

Looking for more automotive aftermarket industry analysis from the BGL automotive aftermarket investment banking team? You can download the full 10-page report here for more insights on the recent AAPEX/SEMA shows and how more aged vehicles are on the road means more automotive M&A opportunities.

Our automotive & aftermarket investment banking team has a deep understanding of the strategic, financial, and operational factors impacting middle market companies and has a long track record of success in representing companies in automotive aftermarket M&A advisory. We welcome the opportunity to learn how we can assist you in navigating today's dynamic M&A environment and to help you maximize your strategic objectives.

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