New Report on the Automotive Specialty Performance Components Market

08/12/96

Business Wire has reported that the rising amount of disposable income among aging tinkerers has led to a boom in the specialty performance component market for automobiles. A new study by Frost & Sullivan, an international automotive market research and consulting firm, shows that customers in this mature market tend to be less price-sensitive than those in other consumer markets.

The market for performance parts continues to grow, even in spite of the decline in the number of gearheads willing to get under their hoods and get greasy as they squeeze extra power out of their engines. The total value of the market in 1995 hit $667.9 million.

Frost and Sullivan attribute the growth in the market to a new brand of enthusiasts, perhaps less mechanically adept than the traditional garage mechanic, but more accepting of electronic gadgets and appearance-enhancing modifications.

The need for performance products to comply with new environmental legislation has recently entered the market, sparking a new trend. New environmental standards will lead manufacturers to continue to design electronic and computer controls into new vehicles.

A successful marketing strategy for many parts companies has been product branding or brand management. Companies leverage their brand by increasing the number of products marketed through the company's slogan, or by offering a variety of products under distinct product groupings.

Frost and Sullivan's report covers some market segments that include: induction (carburetors, fuel injection, conventional intake manifolds), ignition (distributors, ignition coils, spark plug wires), internal engine components (cylinder heads, camshafts, pistons and rings), and engine dress-up parts (chrome and polished steel parts like oil pans, air cleaner covers). Some of the companies profiled include: Ford Motorsport, GM Performance, Mopar Performance, Edelbrock, Mallory, Moroso Performance, Echlin, AE Clevite, Federal- Mogul, Fel-Pro and Dana.

More information on the Frost and Sullivan report is available at www.frost.com.

Paul Dever -- The Auto Channel