EUROPE

CHINA

LATIN AMERICA

INDIA

94.58

34.93

29.26

8.14

96.59

39.51

30.90

8.95

MARKETREVENUE$ Billion

2016 Outlook of the Global Automotive AftermarketGlobal Aftermarket Revenues Forecasted to Grow at 4.7% Globally in 2016

While private labels will intensify price competition,Business to Business (B2B) eCommerce channels,along with next-gen service delivery businessmodels, will keep the market active in 2016.

2016-2017 AFTERMARKET INDUSTRY SENIORMANAGEMENT TOP–OF–MIND ISSUES2015 KEY HIGHTS

GROWING INFLUENCE OFTECHNOLOGYIN THE BAY

0

1

2

3

4

5

SERVICEAGGREGATION,

MOBILE SERVICENEXT-GEN

BUSINESS MODELS

STRENGTHENINGOF ECOMMERCE

CHANNEL INB2B SALES

GROWING B2CECOMMERCEPENETRATION IN EMERGINGMARKETS (CHINA,INDIA, BRAZIL)

ECONOMIC VULNERABILITYIN CHINAAND BRAZIL

IN-VEHICLESALES(TELEMATICSBASEDBUSINESSSOLUTIONS)

COMPETITIONFROM PRIVATELABELS

DIAGNOSTIC TOOLS &SOFTWARE SOLUTIONS

DELIVERY EVOLUTION

Increased Original Equipment Service (OES) participation along with consolidation of traditional distribution channels in developing markets were the key highlights of 2015.

Market

Demand to Grow at the Back

of Increasing Global VIO

Negative Economic

Outlook for a Few KeyRegions

eCommerce Channel

Strengtheningto Continue

Collision Parts Category to

Exhibit Strong Growth

Attractive Opportunity in Africa for After-market Parts &

Services

Service Opportunityfrom Hybridand Electric

Vehicles

Top 6Predictions

of 2016

Manufacturer-level revenue is likely to reach $384.53 billion in 2016, with 26.2%

share for North America in the global aftermarket. Total vehicles in

operation will rise from1.11 billion in 2015 to

1.14 billion in 2016.

Hybrid and electric vehicles make up more than 1% of total vehicles in operation worldwide, causing independent parts and service suppliers worldwide to invest more in the tools and training to repair and maintain these vehicles.

Online retailers will account or 7% of all

manufacturer-level parts sales,as a growing number of

suppliers open up online stores onAmazon.com (US), Tmall.com (China),

and MercadoLibre.com (Latin America).

Collision parts will account for close to 10% of global manufacturer-level revenue as advanced powertrain systems, sophisticated electronics and new materials technologies make vehicles more expensive to repair.

However, industry growth rates for BRIC countries will decline

as economic crises threaten driving and

spending behaviour in emerging regions.

Africa will emerge as a major market opportunity in 2016, with more suppliers and service providers from the developed world pursuing opportunities in Nigeria, South Africa, and Egypt.

Scale: 0 means limited focus, 5 stands for top focus

LOWER THANEXPECTEDGROWTH INCHINA & LATINAMERICA

VEHICLEOWNERSHIP

TRENDS DROVEGROWTH IN

AFTERMARKETDEMAND

TRADITIONALAFTERMARKETPARTICIPANTS

EXPLOREGEOGRAPHICEXPANSIONOPTIONS

STRENGTHENINGOF THE OES

CHANNEL CROSS THE

GLOBE

INCREASINGSTRAIN ONINDEPENDENTAFTERMARKETPARTICIPANTS

There will be a high magnitude of enhancement of the technology focused at improving vehicle service delivery for IAM service providers. There will be newer software subscription based models from diagnostic data providers in the market.

TECHNOLOGY IN THE BAY

With heightened global focus on pollution control and emission norms, the exhaust control components replacement market is expected to grow swiftly across most regions.

EMISSION CONTROL COMPONENT AFTERMARKET

In emerging markets such as China and Brazil there has been greater eCommerce participation in the aftermarket. Forecasted dips in these economies will further fuel the growth of this channel in 2016, as customers focus on less expensive parts for maintenance.

PARTS ECOMMERCE GROWTH IN EMERGING MARKETS

Service aggregators have emerged as a popular choice for customers to research and fix service appointments. This trend is expected to grow stronger and newer participants are likely to enter the aftermarket across various regions globally.

SERVICE AGGREGATION, MOBILE SERVICE NEXT-GEN BUSINESS MODELS

While eRetailers have been primarily targeting DIYers, aftermarket participants are slowly realizing the opportunity in the B2B channel and in 2016 the channel is expected to see significant activity on the online platform. The trend will find maximum traction in the Americas and Western Europe.

eRETAIL IN B2B SALES

The challenge from private label brands is expected to aggravate national Wholesale Distributors (WDs), and retailers will expand their offerings across more number of product categories. Private label brands are expected to account for almost 33% of total sales in North America in 2016.

PRIVATE LABELING

6

Global Aftermarket Overview

Aftermarket Dashboard

KEY AFTERMARKET TRENDS IN 2016

NORTH AMERICA 98.02 100.65

2015 2016 (Estimated)

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