The automotive aftermarket has long been primed for excellent business opportunities. Back when the first Model T rolled off the assembly line, parts eventually would break down and savvy entrepreneurs were there to provide replacements.
Of course, what’s true for the light-duty vehicle market is also true for the medium- and heavy-duty markets – Gross Vehicle Weight (GVW) Class 4–8. These commercial vehicles – semis, cement trucks, buses, delivery vans, utility vehicles, fire trucks, ambulances, large pickup trucks and even motor homes – roll off the assembly line and immediately are subject to wear and tear. Just like in cars and light trucks, parts break, and the replacement parts niche is filled by a variety of aftermarket organizations.
However, that’s where the similarities to the light-duty vehicle market end. There is a level of complexity and customization in the medium- and heavy-duty truck industry that is important to track, understand and plan for. What is the mix of vehicles in these classes? As of Q2 2013, it is roughly a 60-40 split between heavy-duty (GVW 7–8) and medium-duty (GVW 4–6) across the United States.
GVW | Market share |
Class 4 | 14.7% |
Class 5 | 8.6% |
Class 6 | 15.9% |
Class 7 | 15.1% |
Class 8 | 45.8% |
How have sales been in these segments recently? While the medium- and heavy-duty vehicles in operation comprise a smaller number of vehicles than the car and light-truck market, there are still several attributes that make it a viable business opportunity. First, sales of new vehicles in recent years are low compared with the premium sales volumes reached in the mid-2000s.
.jpg?auto=format,compress&w=1050&h=590&cache=0.43599376951966407&fit=max)
At nearly 21 percent in combined medium- and heavy-duty trucks, Ford Motor Company holds the most market share overall. Of course, a closer look reveals that this is almost exclusively in the medium-duty truck market (GVW Class 4–6). Ford has nearly 46 percent of the market in this segment, well ahead of its nearest competitors, International and Isuzu.
However, in the heavy-duty market (GVW Class 7–8), Ford is practically nonexistent. Freightliner and International have nearly identical shares at about 21.5 percent; Kenworth and Peterbilt are competing for third and fourth place, with slightly more than 10 percent market share each.
Total market share for Gross Vehicle Weight Classes 4–8 | |
Make | Market share |
Ford | 20.9% |
International | 17.5% |
Freightliner | 15.6% |
Peterbilt | 6.5% |
Kenworth | 6.3% |
Mack | 5.3% |
GMC | 4.6% |
Volvo | 3.6% |
Isuzu | 3.2% |
Chevrolet | 3.1% |
Other | 13.4% |
The race for engine market share is extremely competitive as well. The top engine manufacturers are Cummins, Caterpillar, Detroit Diesel and Navistar in the heavy class; Ford dominates in the medium class, followed by Navistar and Isuzu.
While most people equate medium- and heavy-duty trucks with diesel fuel, gasoline still powers a significant portion of the medium-duty vehicles:
Gross Vehicle Weight | Diesel | Gasoline | Other/Unknown |
Class 4 | 53.2% | 46.7% | 0.1% |
Class 5 | 74.0% | 25.9% | 0.1% |
Class 6 | 71.3% | 28.5% | 0.2% |
Class 7 | 92.8% | 6.4% | 0.8% |
Class 8 | 99.2% | 0.2% | 0.6% |
All of these factors — vehicle class, manufacturer, engine manufacturer, engine type, fuel type and many more — create a highly complex aftermarket environment for medium and heavy duty trucks. Understanding these trends and how they vary in different regions can help aftermarket organizations better determine their long-term needs and help to maximize their profits.
Subscribe to Aftermarket Business World and receive articles like this every month….absolutely free. Click here.
