COVID Accelerated Lot Of Things For The Auto Care Industry - Bill Hanvey

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Q: What are the challenges faced by the members of the Auto Care Association during the COVID-19 induced scenario?

Hanvey: While our association’s Government Affairs team was able to successfully lobby and petition all levels of Government here in the United States to categorise our industry as “essential,” which allowed our members to continue operating their businesses, there are still a number of challenges facing our members right now. The overall decline in Vehicle Miles Travelled by Americans we saw in March/April this year has had an impact on the demand for parts and services in the aftermarket.

Additionally, all businesses—not just auto care industry businesses—have to navigate continuously changing health and safety regulations, a bureaucratic process for receiving emergency relief or stimulus funding, figuring out how to pay back emergency Government loans, and the increased potential for lawsuits if a customer or employee becomes ill.

Despite these challenges facing our industry, we’ve seen some positive trends in the aftermarket since the spring, including a rise in Vehicle Miles Travelled, an increase in the forecasted sales of light vehicles, and an increase in Do-It-Yourself (DIY) activity.

Q: What are the leanings for Auto Care Association from the COVID- 19-induced new normal and how it supported its members during this time?

Hanvey: As an association, we remain optimistic, despite the obstacles our industry has been facing. We’ve been fighting for our members on all fronts, including providing a dedicated and comprehensive Coronavirus resources webpage, lobbying all levels of Government for “essential” status, assisting members with navigating Government regulations and loans, as well as surveying members and tracking industry trends to keep both our association and our members informed on the latest developments in this battle with COVID-19 on our industry and our country.

Q: How has the ‘Be Car Care Aware’ campaign helped during COVID-19?

Hanvey: The Car Care Council has continued to inform and instruct vehicle owners on how to maintain their vehicles during COVID-19, even if their cars are spending more time in their driveways than on highways.

Q: What kind of role does the Auto Care Association play when the geopolitical imbroglio between different nations erupt leading to changes in the tariff, affecting the business of your members?

Hanvey: The Auto Care Association’s priority is and will always be the protection of our members and our industry’s future. Our Government Affairs team works year-round to defend the interests of our members, whether it’s for vehicle data access in Massachusetts or testifying before Congress about the impact of tariffs on complex global supply chains. We, as an association, also work extensively to facilitate meetings between our members and their congressional representatives to form meaningful relationships that can result in the prioritisation of our industry’s needs. We also work with our sister associations in-country to further demonstrate the impact of tariffs on multiple economies and get those messages to lawmakers.

Q: Can you update on the issues related to tariffs and their implications?

Hanvey: Our association continues to engage with the United States Government to seek means of relief for our members and industry from the negative impact of tariffs. We have been able to assist many of our members with obtaining exemptions from some of these burdensome tariffs, but we will continue engaging with the Government on this issue until the elimination of these tariffs is achieved.

Q: How do you see the growth of the US aftermarket vis-à-vis the global aftermarket industry?

Hanvey: Despite COVID impacts, forecasts for GDP growth in other countries for 2021 and 2022 show countries emerging from the pandemic and returning to positive growth, according to IHS Markit. Demand was improving for light vehicles as much of the world reopened, but of course, with new closures happening as a “second wave” permeates, that could obviously be affected. In the US, August sales were advancing recovery in auto demand since April as incentives, reopenings and stimulus helped auto demand defy economic indicators.

Again, the second wave happening now is likely affecting that. The aftermarket continues to demonstrate that it’s a recession-resilient industry and forecasts show a quicker recovery than expected due to more DIY and more preference for personal rather than public modes of transportation. More reliance on the current VIO means the vehicle age will continue to grow as people keep their cars for longer meaning more opportunities for the aftermarket to keep money in wallets and offer more convenience in a newly inconvenient world. While what is happening now is referred to as a V-shaped recovery, the emergence of a second wave could possibly point to a W-shaped recovery.

Q: What kind of changes do you see in the aftermarket with the automotive industry being triggered by either legislation or regulation?

Hanvey: The aftermarket continues to change and adapt to new technologies, and it absolutely presents an opportunity to standardise repair procedures to keep consumers safe as well as a level playing field for the industry. In fact, the Auto Care Association Emerging Technologies Workgroup has been working to identify these challenges and turn them into opportunities for the aftermarket as well as working to ensure that the aftermarket is included in the evolving transportation ecosystem and that there is a level playing field for all.

An Auto Care Emerging Technologies workgroup is defining a set of best practice recommendations to standardise safe and efficient ADAS sensor recalibration processes for all passenger vehicles. That workgroup is also defining standards recommendations that ensure fair and equitable access to embedded device software needed to maintain and repair today’s vehicles.

Secure Vehicle Interface (SVI) – our work to standardise the transmission of wirelessly generated vehicle data is critical to the future of the aftermarket.

Q: Today, almost all the vehicles, including trucks, are connected in one way or the other. What are the new challenges that emerge out of these connected vehicles?

Hanvey: The foremost challenge our industry is facing with “connected” vehicle technology is ensuring access to the telematics data generated by today’s vehicles for the aftermarket and vehicle owners. Without access to this vehicle data, the vehicle manufacturers are able to shut out vehicle owners and their independent repair shops, which stifles competition and increases prices. This is precisely why we returned to the battleground of Massachusetts this year to present a ballot question to voters intended to amend the original Right to Repair law and put consumers in control of their vehicle. We were victorious with a 75% yes vote.

Q: The Auto Care Association has been working on developing the adoption of the secure vehicle interface to access data cyber-securely utilising ISO standards. What is the update on this?

Hanvey: The Auto Care Association, along with Michelin and Enterprise Holdings, produced a demonstration in September for the European Commission and other interested constituents around the world on the Secure Vehicle Interface (SVI). SVI is a standards-based technology that enables secure cyber access to in-vehicle data to trusted third parties. The European Commission is currently working towards delivering a legislative proposal on the critical topic of access to in-vehicle data, which will define the future of the mobility ecosystem in Europe and around the world.

Viewed globally by over 300 participants, the webinar included a live demonstration of the capabilities of SVI, examples of potential applications and new opportunities presented by the technology.

Q: How is the Auto Care Association preparing its members to cater to electric mobility?

Hanvey: This is an important development that the entire industry needs to work together on to prepare future technicians. We work with partners such as TechForce, ASE and our community programmes to provide scholarships to young professionals looking to pursue careers in the industry and share information that showcases what the “new” reality of incoming technicians and why these jobs are so viable.

Q: What is the feedback to ACES (Aftermarket Catalogue Exchange Standard) and PIES (Product Information Exchange Standard); do they need any amendments?

Hanvey: The Auto Care Association recently received a federal award that will grant the association $299,000 from the International Trade Administration’s (ITA) Market Development Cooperator Programme (MDCP) award to help the automotive aftermarket industry facilitate the implementation and adoption of ACES and PIES technology standards in China and key Latin American markets.

We also continued to expand our standards coverage this year. On the ACES front, VCdb South America will soon become available, providing vehicle content in our VCdb database for Chile, Colombia, Argentina and Brazil. Spanish Translations for the VCdb, Qdb, PCdb and PAdb will also be available as an add-on. We’ve expanded the catalogue and access for North American companies to do businesses in Latin American countries despite closed borders.

Q: Can you update on UniLink?

Hanvey: The UniLink dataset is available and now includes 96 percent of the 1.4 billion global VIO. The UniLink database contains 23 years of information that is constantly growing and extending and is organised into 16 high-level original equipment manufacturing attributes. Serving as a high-level bridge to ACES so users can see which parts fit with their product portfolio, UniLink allows users to identify new countries, makes and models to sell existing parts already in their portfolio – eliminating redundancies in the supply chain. Aftermarket companies can now determine new markets across the globe for underperforming inventory parts that are sitting and collecting dust in the warehouse and connect product data under a unified platform approach to reduce redundant, time-consuming research and avoid costly errors. Our market feedback tells us that UniLink will help increase sales (five to fifteen percent).

Q: Can you update on Auto Care Association’s working model of the secure vehicle data from OEMs?

Hanvey: Now that we have won the Right to Repair ballot for the second time in Massachusetts, we hope to work with the automakers to implement SVI.

Q: Reports are doing the rounds that with more electronics and software entering cars/trucks, the OEMs might do away with the OBD port and will store data wirelessly, exempting them from the current law. Has the Auto Care Association taken cognisance of this as this move may bother your members / independent repair shops?

Hanvey: The Auto Care Association is aware that the OEMs are currently and actively opposed to allowing third parties to access the data generated by vehicles today and that they are spending millions of dollars to prevent independent repairers and vehicle owners from gaining access to this data. After a decisive victory for the Right to Repair initiative in Massachusetts this November, the public has put the OEMs on notice that they want access to their vehicle data. Should the OEMs move to an entirely cloud-based system and do away with the OBD port on vehicles, we will continue to fight for the rights and abilities of the American people to access their vehicle data and service their cars wherever they see fit.

Q: Can you tell us about your initiatives in building professional skills to your members?

Hanvey: The Auto Care Association’s education resources include networking and conference events, market research reports and analyses, publications, websites, scholarships and a partnership with the University of the Aftermarket, all with the goal of providing continuous professional development opportunities. The Auto Care Association also recognises and celebrates members of our industry each year who go above and beyond to equip their employees with the education and skills they need to be successful in today’s auto care industry through the Automotive Career and Education (ACE) Award.

Q: Can you tell us about the initiatives taken to support the sustainable growth of your industry?

Hanvey: COVID really accelerated a lot of things for the industry. A shift to digital and needing even more data to make better business decisions was crucial the moment our world changed earlier this year. Our industry has always been driven by a commitment to innovation and agility, and this has been an even bigger part of the aftermarket’s identity during the pandemic. We continued to build on our foundation of innovative products and services to keep the supply chain running efficiently, provide dynamic access to the real-time marketplace and help companies run their businesses at top capacity.

Our TrendLens platform, which houses our Demand Index tool is a prime example. The aftermarket needs to know how the changing economic world is impacting their businesses:

  • Day to day changes to vehicle miles driven.
  • Record highs and lows in temperatures across the US.
  • Consumer confidence fluctuations that shift with every news cycle.

Searching for the latest economic and industry data (like the ones mentioned) to help inform business decisions can be frustrating: multiple data sources, inconsistent data, out of date data, and costly subscriptions. We tackle those big questions with TrendLens.

TrendLens puts curated and current interactive industry insights at the fingertips of all of our users. The platform enables users to understand how market influencing factors are affecting the industry with the most complete and up to date data sets available, all in one place with innovative ways to compare and contrast data to give it context.

We accelerated the production timeline of TrendLens by several months in response to the COVID crisis, and it should be an absolutely invaluable tool in the industry’s arsenal. But we took it a step further with Demand Index.

Demand Index lets aftermarket companies compare their performance to the market. It provides sales performance data with both a unit index and dollar index for 38 different product groups, from air filters to shocks and struts, and growing.

More data and better value are provided by the Demand Index than any other tool, and what we’re hearing is that buyers and manufacturers are finally coming to the table and speaking the same language and correlate efforts to ROI thanks to the tool. (MT)

SIAM Conclave Highlights Push for Sustainable Logistics in Indian Auto Sector

SIAM

The Society of Indian Automobile Manufacturers (SIAM) convened its 11th Automotive Logistics Conclave today in New Delhi, spotlighting the shift toward more efficient and sustainable logistics in India’s fast-growing automotive sector.

Centred around the theme 'Enhancing Efficiencies in Automotive Logistics,' the event brought together key government officials, automotive leaders, and logistics service providers to deliberate strategies for building a resilient and eco-conscious logistics ecosystem.

Senior Railway Board official Hitendra Malhotra announced the introduction of specialised, higher-capacity railway wagons, including double-deck options tailored for SUVs, supporting increased vehicle transport needs.

Tapan Ghosh, Chairman of the SIAM Logistics Group and VP at Hyundai Motor India, noted that the sector has witnessed a 7.3% growth in FY 2024–25, attributing part of this expansion to enhanced logistics capabilities. Industry players highlighted a growing reliance on digital innovation, multimodal transport solutions, and rail-based logistics to increase efficiency and reduce carbon footprint.

S D Chhabra of Maruti Suzuki emphasised the integration of real-time tracking technologies and a broader push toward sustainability. Policy alignment and infrastructure development were also key focal points, with participation from leading firms including Mahindra & Mahindra, Ashok Leyland, Chetak Logistics, and APLL VASCOR.

The conclave reinforced SIAM’s commitment to green mobility, with discussions calling for industry-wide adoption of eco-friendly practices and regulatory coherence aligned with India's national sustainability goals.

Several logistics providers were recognised at the event for excellence in innovation and operations, underscoring the sector’s critical role in shaping the future of Indian mobility.

IRL 2025

The Indian Racing League (IRL) formally launched its 2025 season with a driver draft event held in Mumbai. This marked the first time a driver draft format was used in Indian motorsport, featuring the selection of 24 drivers across 6 city-based franchises, including international racers, Indian talent and women drivers.

Each team picked four drivers based on a fixed structure: one international driver, one emerging Indian or international talent, one Indian domestic racer and one female driver. Among the key names drafted were Le Mans winner Neel Jani, GP2 veteran Jon Lancaster, IRL champion Raoul Hyman and young Indian racers Ruhaan Alva, Sohil Shah and Akshay Bohra. Women racers such as Caitlin Wood, Fabienne Wohlwend and Laura Camps Torras also joined the grid, bringing diverse experience from series like the W Series, GT racing and F4.

The event also featured a joint press conference with all six team owners — including Arjun Kapoor, Naga Chaitanya, John Abraham, Sourav Ganguly, Sudeep Kichcha and Keerthivasan — who introduced their teams and outlined their plans for the season. Racing Promotions (RPPL) Chairman Akhilesh Reddy stated that the draft aimed to bring greater structure and inclusivity to Indian motorsport. The 2025 IRL season begins in August and will be held across city circuits and racetracks throughout India.

Auto Retail Grows 5% In June, FADA Maintains Cautious Optimism For Near-Term

Auto Retail Grows 5% In June, FADA Maintains Cautious Optimism For Near-Term

The Federation of Automobile Dealers Association (FADA), the apex body representing automotive dealerships in the country, has released the retail sales data for June 2025, which saw a total of 2 million vehicles sold in the country, which was 4.84 percent higher YoY, but 9.4 percent lower than the previous month.

Last month, two-wheeler sales continued to be in the green with 1.44 million units sold, as against 1.38 million units sold last year. Three-wheeler sales grew by 6.6 percent, while passenger vehicle sales at 297,722 units, saw a flattish growth of 2.45 percent YoY. Tractor sales at 8.6 percent, construction equipment at 54.95 percent and commercial vehicle with 6.6 percent showed signs of healthy growth.  

C S Vigneshwar, President, FADA, said, “While two-wheelers showed some early-cycle softness, we remain confident of a robust ramp-up in the coming months as seasonal demand and targeted OEM initiatives take effect.

He pointed out that while festival and marriage-season demand provided a boost, financing constraints and intermittent variant shortages moderated sales. Early monsoon rains and rising EV penetration also shaped buying patterns in the two-wheeler segment.

“Several dealers cited compulsory billing and forced stock lifts – often via auto-debit wholesales – leading to mandated high days of inventory aligned with festival-season targets. Overall, June demonstrated a resilient two-wheeler performance amid mixed market signals,” he noted.

In the passenger vehicle space despite elevated incentive schemes and fresh booking lent support, heavy rains and tight market liquidity impacted sales. “Some dealers indicated that certain PV OEMs have introduced compulsory billing procedures – such as automatic wholesale debits – to meet volume targets; inventory consequently stands at around 55 days. June thus painted a picture of modest but steadfast PV performance amid varied market cues,” Vigneshwar said.

The CV segment saw early-month deliveries buoy volumes before monsoon-induced slowdowns and constrained liquidity dampened inquiries and conversions. The impact of new CV taxation along with mandatory air-conditioned cabins has elevated ownership cost, alongside muted infrastructure demand.

Cautious optimism

Looking ahead, the retail body anticipates a period of mixed fortunes. Above-average monsoon rains in July, are expected to boost rural demand, particularly for two-wheelers, thanks to stronger farm incomes highlighted by an 11.3 percent YoY increase in Kharif sowing. However, intense rainfall in some regions could create logistical challenges.

Simultaneously, substantial government capital expenditure from June to August on infrastructure projects like roads, railways, metros and green energy initiatives will continue to support the CV and CE segments.

Despite these positive drivers, several headwinds remain. Evolving geopolitical tensions and potential repercussions from US tariff measures necessitate careful supplychain management and could dampen consumer confidence. Furthermore, scarcity of rare-earth materials is hindering component production, which in turn limits overall supply and retail volumes.

In the two-wheeler market, early monsoon showers and renewed rural activity have sparked interest, but heavy rainfall, component shortages and price hikes effective this month are impacting conversions. Passenger vehicles face challenges from high-base effects, a limited number of new model launches and tight financing, although festival planning and new incentive schemes offer some counterbalance. Commercial vehicles continue to contend with subdued infrastructure demand, increased ownership costs due to new taxes and mandatory air-conditioned cabin regulations, though extended order pipelines provide some relief.

Vigneshwar expects that July is likely to see a blend of agrarian tailwinds and the positive impact of school reopenings, tempered by seasonal difficulties, higher prices and liquidity constraints.

Tata Motors’ PV And CV Sales In The Negative, Outlook Remains Positive

Tata Motors

Tata Motors, one of the leading passenger vehicle and commercial vehicle manufacturers in the country, has announced its wholesales for June 2025 and Q1 FY2026.

The company reported that its total PV sales came at 124,809 units in Q1 FY2026, down 10 percent from Q1 FY2025 on a YoY basis. Domestic PV sales, including EVs, came at 123,839 units, down 10 percent YoY. For June, PV sales came at 37,083 units, down 15 percent compared to the same period last year.

TATA MOTORS PASSENGER VEHICLES
  June '25 June '24 Change (in %) Q1 '26 Q1 '25 Change (in %)
PV Domestic (includes EV) 37,083 43,524 -15% 123,839 138,104 -10%
PV IB 154 100 54% 970 578 68%
Total PV (includes EV) 37,237 43,624 -15% 124,809 138,682 -10%
EV (IB + Domestic) 5,228 4,657 12% 16,231 16,579 -2%

Shailesh Chandra, Managing Director, Tata Motors Passenger Vehicles and Tata Passenger Electric Mobility, said, “In Q1 FY2026, the passenger vehicle industry experienced volume pressures, particularly in May and June, with flat growth reflecting continued softness in demand."

"The electric vehicle segment emerged a bright spot, driven by robust growth and the launch of new EV models across OEMs, enhancing customer interest and consideration. Tata Motors reported wholesales of 124,809 units in Q1 FY2026, including 16,231 EV units, underscoring our commitment to aligning wholesale and registration volumes. EV sales gained strong momentum towards the end of the quarter with a healthy growth trajectory. The refreshed Tiago posted 16 percent YoY volume growth in Q1 FY2026 and new launches – Altroz and Harrier.ev – saw a positive market response, with their full impact expected in the coming months,” he said.

On the other hand, Tata Motors’ commercial vehicle (CV) business reported sales of 85,606 units, down 6 percent YoY for Q1 FY2026. Domestic CV sales at 79,572 units, were down 9 percent as compared to Q1 FY2025.

In June 2025 alone, total CV sales came at 30,238 units, which is 5 percent lower than June 2024. In the domestic market, the demand for Medium and Heavy Commercial Vehicles (MH&ICV) came at 12,871 units, as against  4,640 units for the same period last year. During Q1 FY26, MH&ICV domestic sales were 37,370 units as against 40,349 units in Q1 FY25.

TATA MOTORS COMMERCIAL VEHICLES
  June '25 June '24 Change (in %) Q1 '26 Q1 '25 Change (in %)
HCV Trucks 7,359 8,891 -17% 21,735 24,690 -12%
ILMCV Trucks 4,863 4,997 -20% 14,497 13,791 -20%
Passenger Carriers 5,658 5,654 4% 15,089 14,893 9%
SCV Cargo & Pickup 10,056 11,081 1% 28,251 34,241 4%
Total CV Domestic 27,936 30,623 -9% 79,572 87,615 -9%

Girish Wagh, Executive Director, Tata Motors, said, “Q1 FY26 began on a subdued note for the commercial vehicle industry with muted performance in the HCV and SCVPU segments while buses, vans and ILMCVs registered modest year-on-year growth. Tata Motors Commercial Vehicles recorded domestic sales of 79,572 units, 9.2 percent decline compared to Q1 FY25."

"However, June 2025 witnessed a sequential growth of 8 percent over May 2025. Additionally, our International Business delivered a robust 67.9 percent growth in volumes over Q1 FY25. During the quarter, we launched India’s most affordable mini-truck, the Ace Pro, offered in petrol, bi-fuel and electric powertrains, which received an encouraging market response. We enhanced driver comfort by introducing air-conditioned cabins across our entire range of light to heavy trucks. We also expanded our international footprint by entering Egypt and expanded our offerings for the Middle East North African region,” Wagh added.

Going forward, Wagh stated that with forecasts for a healthy monsoon across the country, a reduction in repo rate and renewed thrust on infrastructure development, will bring back sales momentum for the commercial vehicles segment.

Chandra too shared his optimism for the PV market and stated, “Looking ahead, while overall industry growth is expected to remain subdued, Tata Motors is well positioned to leverage its new launches to outperform across segments—including hatchbacks and SUVs, while continuing to build on the EV momentum.”