Modified Driving Patterns Likely to Impact Automotive Product Sales

PORT WASHINGTON, N.Y. (October 26, 2006) --Automotive products and services companies are hoping that falling gas prices will lead to increased driving. According to leading consumer and retail information company The NPD Group, automotive maintenance and repair activities may be less robust in 2007 if miles driven do not rebound. The increases in miles driven in 2006 are the smallest in over 25 years. And since consumers base their automotive maintenance intervals on mileage, fewer consumers expect to perform automotive maintenance and repair this year versus last year.

Eighty percent of Americans base their automotive maintenance intervals on mileage, with the average oil change interval occurring at 3,840 miles. Driving fewer miles could mean there would be fewer maintenance intervals each year. NPD reports that only nine percent of consumers expect to perform more maintenance and repair this year versus last year, while 10% believe they will perform less maintenance and repair.

In order to weather the storm, manufacturers, retailers and service providers must educate consumers about the need for regular maintenance. While consumers do not appear to be enthusiastic about repair and maintenance in the next year, twelve percent of consumers report that they will spend more this year on vehicle appearance; only five percent will spend less.

“Spending on vehicle appearance could be a real bright spot in the market in 2007,” said David Portalatin, director of industry analysis for NPD. He adds, “Companies might consider offering product bundles and/or service packages that cross-promote appearance and maintenance items to make the most of the appearance-oriented consumer purchase occasion,” added Portalatin. He further suggests, “Another option could be to ensure when consumers visit a retailer or service outlet for repairs, that they are also cross-sold maintenance products/services to capture more unperformed maintenance.”

David Portalatin will be presenting results from NPD’s 2007 Outlook Survey at the Automotive Aftermarket Products Expo (AAPEX) in Las Vegas on Thursday, November 2 at 8:00 AM at the Sunrise Seminar. He will also be available at NPD’s booth at AAPEX to discuss study findings and industry trends.

About NPD’s 2007 Outlook Survey

A representative sample of 1,420 consumers were interviewed from NPD’s online panel from October 6–12, 2006. NPD’s online consumer panel consists of more than 3 million registered adults and teens who have agreed to participate in surveys, providing NPD and its clients unmatched insight into trends, purchasing, consumption, ownership, and usage.

About The NPD Group, Inc.

Since 1967 The NPD Group has provided reliable and comprehensive consumer and retail information for a wide range of industries. Today, more than 1,400 manufacturers and retailers rely on NPD to help them better understand their customers, product categories, distribution channels and competition in order to help guide their businesses. Information from The NPD Group is available for the following industry sectors: automotive, beauty, consumer technology, entertainment, fashion, food and beverage, foodservice, home, software, sports, technology distribution channel, toys and wireless. For more information, visit www.npd.com.