DatMac^® Mexico 2004: The Commercial Vehicle Parts And Service Market

DataMac Mexico is a multi-client project that will be completed in 2004. Similar to DataMac in the United States and Canada, this project is designed to profile the replacement demand for parts and components on medium and heavy duty trucks, trailers and buses.

Late in 1992, MacKay & Company completed the first comprehensive benchmark study of the truck parts and service business in Mexico. Several hundred medium duty and heavy duty truck and trailer operators were interviewed over the course of several months. In addition, extensive interviews were conducted with all of the major heavy duty parts distribution channels in Mexico. Beyond that, a comprehensive analysis of the heavy duty truck and trailer population and similar background research was also completed.

In 1995 and, again, in 1999, MacKay & Company completed comprehensive studies of the truck parts and service business in Mexico; both utilized the DataMac process. DataMac Mexico is similar to the format used for MacKay & Company's U.S. and Canadian DataMac products.

The Mexican truck and bus market is growing as is the aftermarket to support it. In the 2004 study, we will explore the following issues:

• How has the market changed since 1999?
• What trends are apparent after four studies and twelve years?
• Where are the best opportunities for growth?

Mexico offers a host of different challenges and opportunities compared to Canada or the United States. Older vehicles, more mechanical engines and a less developed maintenance and distribution infrastructure all contribute to a larger per-vehicle aftermarket opportunity — and one significantly different in structure from either the United States or Canada.

Knowledge of the Mexican heavy duty aftermarket five years ago is hardly enough information to make intelligent market planning decisions. Other information is needed:

• What is the size and the composition of the operating vehicle universe by fleet size, vehicle type, and vocation?
• What are the channels of distribution for aftermarket parts?
• Who performs the service work?
• What types of parts are purchased for replacement?
• What are the replacement frequencies and what is the end users purchase rationale?

How have these factors changed over time?

DataMac Mexico 2004 addresses these issues.

The objective of this study will be to provide study participants with a comprehensive "DataMac style" overview of the Mexican commercial vehicle parts and service market. As with previous MacKay & Company studies in Mexico, the commercial vehicle market will be defined as medium duty trucks (9 - 15 tons), heavy duty trucks (more than 15 tons), buses (medium & heavy duty) and trailers.

When this study is completed, MacKay & Company will have profiled the Mexican market four times; we will then have four reference points in time to analyze this market. This information will be included, when appropriate, as a tool to identify trends or highlight significant changes in the aftermarket. In the process, inventory levels, prices, margins, shifts in the customer base and a series of related issues will be evaluated in detail.

In previous Mexican studies, it has been noted that Mexican commercial vehicle market practices are similar to the U.S. and Canadian markets of the 1970s. With 22 years of historical U.S. DataMac information, MacKay & Company will compare and contrast the two markets when we believe there is information of value.

DELIVERABLES

Each participant in DataMac Mexico will receive three copies of the final report and an onsite presentation of the findings. DataMac Mexico will include a detailed market overview, a distribution analysis by product category (power generation, power transmission, undercarriage and electrical) and detailed demand tables on each component by application (heavy duty truck, medium duty truck, buses and trailers) where applicable.

In addition, each report will include an interactive windows based Access database of the aftermarket component data. This will allow the participating companies to evaluate specific demographic and product demand information. The database will allow users to immediately create charts and tables for reports, presentations or other uses.

CLIENT PARTICIPATION

DataMac Mexico is modular. Subscribers can select any combination of product groupings:

Power Generation, which covers engine, and engine related components
Power Transmission, which includes clutches, transmissions, differential carriers and wheel seals and bearings
Undercarriage, which covers brakes, steering and suspension components
Electrical.

Base participation will include:

• All vehicle universe and universe characteristics information
• Detailed product demand and channel of distribution information for any one of the four DataMac modules of truck and trailer components and parts to be researched (power generation, power transmission, undercarriage and electrical).

Based on research conducted, transit and intercity buses are a significantly more important part of the operating vehicle universe in Mexico than in either the United States or Canada. A separate package of replacement parts and components information for the bus market in Mexico will be available to participants in the truck study as an additional group module.

For more information on the products and to obtain pricing, please call or email John Blodgett at 630.916.6110 or