- Auto dealers
-Service Stations
-Aftermarket
They each account for 48.1%, 27.9%, and 24% of the global retail sector, respectively.
While each segment is separate, they are still interconnected. Autodealers thrive on the large profit margins of service, just as service stations do. Aftermarket product sales thrive when consumers cannot find the options they look for in a vehicle or when base models have very few features. Aftermarket products offer a cheap alternative to buying factory options, or offer discerning car owners the ability to customize.
Competition in the auto industry is always increasing, and added value for any vehicle gives a competitive edge to manufacturers. If auto makers continue to add value, such as reliability, low maintenance, and bonus features, I think there could be a significant decrease in the aftermarket segment as well as the service sector (which includes auto dealerships' service departments). While auto sales may increase or stay the same, the fat profit margins that dealerships experience from service may thin out. Electric vehicles, still in the early stages of development, may present a new opportunity for dealerships and service stations as the need for service will become less, such as charging stations and battery-swaps.
Additionally for the aftermarket sector, there is always something that drivers can't get from an assembly line vehical, but as base models increase in added-value, I think auto dealers may steal a portion of the market away from the aftermarket retail segment.
Sources:
Ibis Auto Industry Report
http://web.ebscohost.com/ehost/detail?vid=14&hid=15&sid=81b64854-fbf7-4aa8-aaba-b265256c2c36%40sessionmgr4&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=buh&AN=49736455
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