Performance Hot Rod Market

Oct 15, 2010

Performance Hot Rod Market

  • The hot rod market benefits from continued improvements in technology, but an in-depth and ongoing education is crucial for speed shops in order to keep up with this ever-changing industry.
  • Owners want a vehicle that satisfies their individual needs.

Market Strengths

  • Hot rod owners are dedicated and enthusiastic.
  • Hot rod gatherings nationwide reported strong attendance in 2009 and 2010.
  • Hot rod enthusiasts have a passion for driving and showing off their cars.

Opportunities for speed shops are linked to discretionary consumer spending on hobbies like hot rodding.

  • Individuals continue to hot-rod within the constraints of their budgets.
  • Price-conscious people are looking for the best value for the money.
  • The performance hot rod industry has become more mainstream.
  • The hot rod market has diversified into areas previously not considered to be part of the industry.
  • Electronics and mainstream application of turbos and blowers impacts the hot rod industry.

Emerging trends in the hot rod market:

  • There has been a contraction of sales from those with less discretionary funds, but enthusiasm is strong.
  • There is increased demand for long-block and complete engine sales.
  • Hot rodders are looking for tried-and-true engines; higher-quality parts at lower costs.
  • There is increased demand for crate engines.
  • Hot rodders look for the convenience of “one-stop shopping”.
  • More do-it-yourself customers expect more variety and personalization.
  • Future hot rod market will include more retrofitted engines.
  • Controllable performance is in demand.

Horsepower levels and reliability of late-model engines eclipse that of their early counterparts.

Tips for speed shops to gain market share:

  • Provide a high-quality product, offer premium parts; reliable power at a fair price.
  • Develop; repair relationships with customers.
  • Become more involved at the track.
  • Advertise the shop’s expertise and professionalism.
  • Learn more about the newest engines; latest products; latest improvements and applications.
  • In-depth, ongoing education is crucial to keeping up with improvements in technology.
  • The hot rod market will always have enthusiasts who are ready to purchase.

Business is heading in the right direction.

  • Education is strong.
  • Focus efforts on price, advertising and value.
  • The hot rod market is full of people who want something different.