Diesel Market Dynamics
• Strength in the diesel pickup truck accessories market is linked to a customer base with relatively high income; and to demand for diesel work trucks.
• Diesels excel in areas of performance, longevity and cost.
• Diesel performance is a growing niche market segment.
• Owners tend to keep vehicles longer;
• Owners demand power and performance;
• Significant growth in youth market suggests long-term interest.
Leading diesel pickup truck OEMs:
• Dodge Cummins
• Power Strokes
Diesel market includes passenger cars as well:
• Volkswagen Jetta and Golf;
Leading power-adding accessories:
Additional demand for “deep engine” parts:
• Pumps, etc.
Consumers are interested in upgrades for:
• Drag racing
• Sled pulls
Diesel shop challenges
• Staff education
• Internet sourcing
• Market differentiation
• Fewer new truck purchases
• Fewer products for new trucks
• Access to inventory and wholesale pricing to compete with the OE dealer
• Consumer concerns
• Fuel costs
• Emissions, especially in California
• Reduced efficiency due to emission standards
• Government involvement and regulations
• Future impact is unknown
• California Air Resources Board rulings on emissions testing
• EPA restrictions
Opportunities for diesel performance shops
• Competition diesel market is tied to street performance diesel market.
• New products are shown at events.
• The diesel racing market:
• Becoming more defined;
• Using more engineered technology;
• Reducing trial-and-error.
• Manufacturers are developing clean diesels for passenger cars.
• Research suggests hybrid vehicles may become diesel-electric.
• Research and development of diesel half-ton pickup trucks may expand accessories aftermarket further.