06/23/2026

Vehicle Demand Shifts Toward Used, Hybrids Signal Potential Aftermarket Service Opportunity

Source: aftermarketNews

Shifting vehicle demand is beginning to reshape the service and repair landscape, as consumers move away from new vehicles and hold onto existing vehicles longer. That shift is creating new opportunities and challenges for the automotive aftermarket.

According to the latest Catalyst IQ State of the Industry Report, released April 23, 2026, Q1 trends show a clear redistribution of demand toward used, certified pre-owned and fuel-efficient vehicles. For aftermarket professionals, those shifts point directly to changes in service volume, parts demand and repair complexity.

Used Vehicle Growth Supports Service Demand

As consumers delay new-vehicle purchases, more vehicles remain in operation longer, increasing demand for maintenance and repair.

In Q1 2026, average daily new-vehicle movement declined for the third consecutive quarter, dropping 10.9% from 38,145 units in Q2 2025 to 33,973 in Q1 2026. At the same time, used-vehicle movement increased 10.6% to 44,193 units per day, while certified pre-owned vehicles rose 8.7% quarter over quarter.

That shift extends the service lifecycle of the vehicle parc. Older vehicles typically require more frequent maintenance, higher-value repairs and a broader mix of replacement parts, particularly across wear components, driveline systems and emissions-related repairs.

Pricing Pressure and Confidence Shift Consumer Behavior

Rising vehicle prices and declining consumer confidence are accelerating that transition. The average marketed price for a new vehicle reached $49,800 in Q1 2026, up from $49,200 a year earlier. At the same time, consumer confidence, as measured by University of Michigan, fell to 53.3 in March 2026, down 26.1 points over two years.

“Depressed consumer confidence—exacerbated by geopolitical instability—is intersecting with renewed upward pressure on new vehicle pricing,” said Rick Wainschel, vice president of data and analytics at Catalyst IQ. “The result is not a uniform slowdown, but a redistribution of demand—away from higher-cost new vehicles and toward more value-friendly alternatives.”

For the aftermarket, that redistribution typically translates into longer ownership cycles, delayed replacement decisions and increased reliance on repair over replacement.

Non-luxury vehicles drive the shift

The movement toward used vehicles is most pronounced in high-volume, non-luxury segments, where cost sensitivity is highest. New non-luxury vehicle sales dropped 10.7% from a peak of 32,762 units per day in Q2 2025 to 29,251 units in Q1 2026. Over the same period, non-luxury used vehicle movement increased 11.2% quarter over quarter to 41,432 units per day.

These are the vehicles that form the core of aftermarket service demand. As more of these vehicles stay on the road longer, repair shops and parts suppliers are likely to see sustained volume, particularly in categories tied to aging components and deferred maintenance.

Hybrids Accelerate, EVs Grow with Variability

Fuel prices are also influencing vehicle mix, with implications for future service requirements. Hybrid vehicle sales velocity increased 33% in Q1 2026, reflecting consumer demand for improved fuel economy without the infrastructure or cost considerations tied to full electrification. EV sales rose 49%, though from a smaller base and with more variability.

“Consumers are pursuing fuel efficient solutions,” Wainschel said. “Momentum for hybrids, which has already been positive over the past two years, accelerated, while EVs ticked upward from very low post-tax-credit levels.”

For the aftermarket, hybrid growth introduces a near-term shift in service complexity. These vehicles combine internal combustion engines with electrified components, expanding the range of parts and diagnostic capabilities required at the shop level.

EV growth continues to build gradually, reinforcing the need for long-term investment in high-voltage training, tooling and safety procedures, even as internal combustion and hybrid vehicles dominate current service volume.

Why the Aftermarket Should Care

Taken together, these trends point to a market where vehicles stay in operation longer, service demand remains strong and the mix of vehicles being serviced becomes more complex.

For manufacturers, distributors and service providers, the near-term opportunity centers on supporting an aging vehicle parc while preparing for a gradual shift in powertrain mix. Inventory strategy, technician training and parts availability will all play a role in how effectively the aftermarket responds to these changing conditions.