Efforts to Extend Life of Automobile Helps to Make High Mileage Oil Products Popular with American Consumers

PORT WASHINGTON, N.Y.--Sept. 28, 2004--More and more consumers are hoping to keep older vehicles running smoothly and many have a maintenance routine that includes the use of motor oil specially formulated for vehicles with high mileage, according to recent data from The NPD Group's Aftermarket Industry Monitor.

The NPD Group's Aftermarket Industry Monitor, which tracks the sales of automotive products and services sold through auto parts stores, shows high mileage motor oils now account for 10 percent of all motor oil sold in auto parts stores. Through the second quarter of 2004, dollar sales for this segment have increased 25 percent versus a year ago and 83 percent since 2002, making these products among the hottest items on the shelf. Although consumers are becoming increasingly price conscious, these high mileage oils retail at an average price that is almost 50 percent higher than conventional motor oils.

"Even during these times of rapidly escalating fuel costs, many consumers are willing to spend a little extra on their motor oil if it means they can continue to extend the life of their vehicle," said David Portalatin, automotive industry analyst, The NPD Group. "The extra 78 cents per quart average that is spent on high mileage oil is a small investment for a consumer faced with the decision of whether to trade in their old model for a new one."

According to The NPD Group, 64 percent of automotive product purchasers own at least one vehicle that has more than 80,000 miles on the odometer, with more than half owning a vehicle that is eight or more years old. These numbers indicate a sizeable target market for these products capable of sustaining continued growth in the segment. This product is also appealing to a broad diversity of consumers.

Motor oil has traditionally been a male dominated category, however, women are more likely to purchase a high mileage oil product when compared to automotive products in general. Additionally, the high mileage oil purchaser tends to be younger and more ethnically diverse. Such demographic diversity is appealing to retailers who would like to leverage the category to drive more traffic into their stores and broaden the appeal of other automotive related categories.

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