3 minute read

TECALLIANCE FUELS GLOBAL AUTO AFTERMARKET GROWTH

The company’s partner programme offers a range of benefits to partners

TecAlliance, a leading data management specialist in the independent automotive aftermarket, is celebrating the success of its new TecAlliance Partner Programme (TAPP) with over 250 registrations since its launch in January.

TecAlliance says the programme, designed to support software resellers, vendors, and consultants on a global scale, has received substantial interest from many regions of the world.

“We are delighted to witness the exceptional level of interest our new offering has garnered, spanning Europe, Africa, Asia, and the Americas,” TecAlliance Vice President Partner Management, Robert Szwed, said.

“We look forward to fostering our ongoing connections with existing and prospective partners. We are eager to provide them support in optimising their business strategies and market presences.”

BIGGER IS BETTER… OR IS IT?

For a number of years now, Fifth Quadrant has been tracking the shift from passenger vehicles to SUVs, and seeing more and more US-style trucks (like the RAM1500) on Australian roads trend to smaller engines, whereas their Japanese counterparts produce a more balanced mix of sizes. With that said, Japanese brands are responsible for almost 10m vehicles on Australian roads, so that includes almost 2.5m with an engine capacity under 2L.

One would think that this shift must naturally also be translating through to engine size, with more powerful units required to drive these larger vehicles.

Looking at the data, that is however not the case, with more modern vehicles (ie. those registered since 2017) largely defaulting to a more moderate (and fuel-efficient) power train.

In fact, we can see a significant shift in the market over the past five years, with vehicles from 2016 or older much more likely to have a larger engine. Going back a decade to the Aussie muscle era, more than one in three had an engine capacity of 3L or more, whereas the sweet spot today is 2 –2.49L. While there are still models being sold with larger engines, they are down to one in six (or half what they used to be).

Across our entire list, there are however only two countries whose brands produce more vehicles with larger engines than small ones…despite no longer having active OEM production facilities, two thirds of vehicles produced by Australian brands have an engine capacity of 2.5L or more, just behind manufacturers from the US.

In absolute terms, while there are less than 300,000 American-brand vehicles on Australian roads, almost one in five of those are operating 5L or larger engines.

With that said, age is not the sole factor impacting this trend. Fuel type is a significant contributor to these decisions, with diesel vehicles naturally running larger capacity engines than their petrol counterparts.

The programme offers a range of benefits to partners including comprehensive training, individual support, and access to marketing and sales materials.

Since its inception, TecAlliance says TAPP has attracted partners from various regions, with around 50 percent of registrations originating from Europe and the other half from the rest of the world.

TecAlliance reports that many partners have expressed their intentions to expand their operations globally.

TecAlliance states it has been empowering automotive aftermarket players for nearly three decades, enabling parts manufacturers, dealers, workshops, and fleet operators to thrive with standardised data solutions.

For more information, please visit www.tec.al/TAPP

In fact, just one in four diesel-powered vehicles has an engine capacity below 2.5L, against two thirds of those running petrol engines. While this is somewhat self-fulfilling, given diesel is more typically going to be found in large SUVs or light commercial vehicles, it does talk to the varying nature of these vehicles, and the types of engines needed to ensure they can deliver to usage expectations.

For aftermarket businesses, this can be a key input into product planning and training.

A detailed understanding of car parc trends is critical to manufacturer planning cycles, with wrong decisions having a significant financial impact. From a workshop perspective, this can also feed into significant decisions around where to invest in tools and training.

More important here though would be considering data at a more local level. While engine capacity is not included, the new AAAA car parc tool has just been launched, providing members with access to more granular data about their local area.

Similarly, we can see a clear trend in terms of engine capacity by brand country of origin.

Vehicles produced by brands from China, South Korea and many European markets typically

This tool is available now in the member area of the AAAA website, and we’d love to hear your thoughts. This column was prepared for AAAA Magazine by Fifth Quadrant (formerly ACA Research), the AAAA’s partners in the AAAA Aftermarket Dashboard which is delivered to AAAA members each quarter. For more information, visit www.fifthquadrant.com.au or contact Ben Selwyn on ben@fifthquadrant.com.au

This article is from: