Performance. What does it mean? The Oxford American Dictionary defines it as “a vehicle's capacity to gain speed rapidly and move efficiently and safely at high speed.”
Doug Evans, senior vice president of the performance automotive group at Source Interlink Media, publishers of more than 120 automotive magazines, said, “I would define performance as products that enhance vehicles’ capabilities beyond the normal baseline established for the stock vehicle. This would include everything from horsepower to handling characteristics, even fuel economy.”
That simple definition has never been more valid than it is today. Industry reports show that the performance niches are strong. Domestic and import OEMs are fueling the fire by offering vehicles with greater underhood performance and better handling. Ford, GM, and Chrysler are promoting performance by reintroducing such muscle-car era legends as the Shelby GT500KR Mustang, the Chevy Camaro SS, and the Dodge Challenger SRT8.
Economic concerns, high gas prices, and the current credit crunch caused consumers to scale back their purchases in 2008. However, according to the March 2009 SEMA Performance Parts and Accessories Demand Index (PADI), 8 percent of adult American drivers (approximately 6.7 million households) indicated plans to purchase specialty equipment products within the next three months.
Electronic control of engine and engine components ranked as the top automotive technology most affecting SEMA members in 2008. About 31 percent of SEMA members surveyed in 2008 said that clean-diesel technology would have a “noticeable” to “extreme” impact on business. Engine and suspension products came in a second and third in terms of product categories most sold by SEMA members.
Products including performance air filter replacements, cold-air intakes, intake manifolds, camshaft/valvetrain components, exhaust headers, exhaust components, and brake kits are the most popular among performance enthusiasts. Transmission performance upgrades, braided engine hoses, pistons/connecting rods/rings/crankshafts, and performance plumbing were also listed among those purchase plans.
“MagnaFlow saw growth in 2008 by focusing marketing efforts on our offering of products for MPG as well as horsepower and torque gains, said Larry Norris, global vice president of sales and marketing at MagnaFlow Performance Exhaust. “Our emissions systems sector did very well for us in 2008. Our spun catalytic converters led the way.”
Another industry leader, Corsa Performance Exhaust, has grown as well by expanding into new market segments and developing a broader range of performance exhaust products. “Our offerings for European vehicles as well as our core Corvette business are strong,” Corsa founder and President Jim Browning Sr. said.
“Our new Corvette C5 Xtreme exhaust system is taking off, as is our new exhaust systems for the 2008 Toyota Sequoia, the Tundra, Titan 5.6L, and the Dodge Ram 1500,” Browning said.
Programmers and flash tuners are becoming more popular for use on post-1995 vehicles equipped with an OBD port for instant performance gains. A leader in the development of flash tuners is Granatelli Motor Sports.
“Our business is thankfully level. While we’ve seen a very slight increase, it is hardly measurable,” President J.R. Granatelli said. “We are happy to stay even for the times.
“With increased gasoline prices, our business has been affected, but thankfully we launched several new products that focus on increasing gas mileage, and this is where we’ve seen upwards of a 30 percent growth,” Granatelli said. “Our complete line if Mileage Miser Diesel modules and MPG/Plus ignition wires have come on super-strong.”
One of the strongest American performance platforms is still the Ford Mustang. The latest incarnation of this cool coupe is leading many aftermarket companies’ growth segment.
Performance exhaust upgrades are also very popular for the pony car.
“Our performance cat-back systems for Mustang are also doing well, as people are looking to get more MPG out of their vehicles,” MagnaFlow Marketing Manager Robert Wilson said.
“We have experienced growth this year, but our business ebbs and flows just like the rest of the industry,” said Joe Thompson, general manager of Roush Performance, specialists in limited editions and performance products for the Ford Mustang and F-150.
“But we have a strong brand and a strong distribution base, which has helped us weather some of the more recent setbacks in the business,” Thompson said. “Since 2003, we have experienced incredible growth. Just in terms of sales alone we have grown more than 450 percent, but during this time we have had years of tremendous growth and also years of plateau.”
It’s clear from these interviews that performance is here to stay, in one form or another. And now that gas prices are coming down, performance is certain to gain market share in the near future, those in the business said.
Forecasting how specialty-equipment sales will fare in the coming months gives you an upper hand in planning your own inventories and strategies, said Bill Tichenor, director of marketing for Holley Performance Products.
“We are watching the SEMA PADI reports very closely and comparing the information to our own intelligence,” Tichenor said. “We are glad to have this added insight.” (For monthly updates to the SEMA PADI reports, which offer valuable statistics on consumer purchase plans, visit www.sema.org/research.)
Despite a tough economy, research indicates that there are still millions of customers out there who intend to modify or accessorize their vehicles in the coming months.
“Stay aggressive, offer enticing specials on parts and installation, up-sell at every opportunity, and focus on anything you can produce, sell, or install that has the aura of helping fuel economy,” Tichenor said. According to SEMA research, the performance aftermarket has averaged about a 7 percent yearly growth over the past 20 years. “This industry is all about passion and that is what sustains it,” Tichenor said. “Die-hard car enthusiasts are not going to walk away from their number one interest because the economy is going through a difficult period. Success in the performance market is a matter of being there, with the right product mix, when they’re ready to buy.”
