Aftermarket parts indicator predicts sales boost
MANHASSET, NY – Commercial Motor Vehicle Consulting’s (CMVC) commercial vehicle Parts Aftermarket Leading Indicator (PLI) has improved for the fourth month in a row, suggesting that fleet business conditions are recovering and will result in more aftermarket parts sales. But there are limits in the medium term.
Fleet capacity utilization is rising, indicating parts are depreciating at quicker rates and will boost the aftermarket retail sales, the analysts say.
According to CMVC, however, the recent rebound in fleet capacity utilization has mostly been caused by fleets reducing capacity rather than a substantial strengthening of the freight environment, and that will restrict the potential upside of parts sales in the medium term.
Meanwhile, the installed base of depreciating parts is stable -- as indicated by a stable commercial vehicle population for the medium turn -- restricting the potential upturn in aftermarket parts sales in the medium term.
For more info regarding the PLI, visit www.cmvinfo.com.