Facelift, in general, can be defined as a process of beautification or improvements to enhance the esthetic appearance of any object or person. In terms of automobiles, facelift is an upgrade of the design, interiors, and technology of vehicles in order to maintain their appeal and attract new customers.
Customer expectations and demand for vehicles are changing rapidly with growing number of young vehicle owners. This new generation of automobile customers access various digital platforms to connect across the globe, which makes them aware about the latest trends and technologies in the market. Growing customer awareness is changing their expectations from vehicles; hence, mandating automakers to upgrade their vehicle models as per the changing demands. The total revamp and design of new models is expensive and time consuming for automakers and hence, they opt for facelifts. OEMs are launching new facelift models periodically, depending on the region, to maintain their customer engagement and market share. Young vehicle users also spend significantly on facelifting their vehicles after purchase. On March 2019, the Director of Specialty Equipment Market Association (SEMA), Mr. Gavin Knap, said in a press release that around 7.9 million young vehicle users spend around US$ 7.2 billion to upgrade their cars every year. Thus, the changing demographics of vehicle users is fuelling the automotive facelift market across the globe.
Automotive and transportation industries are highly regulated and are witnessing multiple legislative transformations related to environment conservation, pedestrian safety, vehicle safety, and several others. These regulatory transformations mandate automakers to modify their vehicle models. OEMs facelift the engines, gearboxes, chassis control systems, and safety aids along with other such components of their vehicles in order to comply with new laws. Thus, legislative transformations are further boosting the global automotive facelift market.
Challenges in Automotive Facelift Market
Upgrades made in a facelift to change the vehicle’s styling and specification can prove expensive for OEMs to design, implement, and market the new model. This cost of a facelift is reflected in an increase in the vehicle’s price; thus, causing concerns regarding its adoption by customers.
Impact of COVID-19 pandemic on Automotive Facelift Market
The automotive industry and its supply chains took a major hit worldwide amidst the recent outbreak of COVID-19 pandemic. This prompted automakers to temporarily shut down their facilities in order to arrest the spread of coronavirus infection, thereby hampering the global automotive facelift market. However, the automotive industry is anticipated to regain its momentum in the next few years, as companies are restarting their operations and governments have lifted restrictions and announced various relief packages. This, in turn, is projected to fuel the automotive facelift market.
North America holds Significant Share of Global Automotive Facelift Market
North America accounts for a significant share of global automotive facelift market owing to the trend of OEMs in the region launching new upgraded models of same vehicles every year. The age of the vehicles in North America is considered from the date of its launch, unlike that in other regions where the vehicle’s age is considered from the date of its registration. This is prompting OEMs to launch new versions of vehicles after every 2 to 3 years. For instance, in December 2020, Nissan Motor Company, Ltd. announced the launch of new facelift Kicks SUV in the U.S. High number of new versions of vehicles introduced by OEMs every year is propelling the share held by North America in the global automotive facelift market.
Key Players Operating in Automotive Facelift Market
The global automotive facelift market is highly concentrated due to the presence of top manufacturers. A few of the key players operating in the global automotive facelift market are:
