The automotive market was hit hard as a result of the global pandemic in recent years. The chip shortage saga unfolded, factories were shut down, and the car market went haywire. When new vehicles and spare parts started to become scarce, the market shifted its focus towards used cars and spare parts from car wreckers.

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That is when the demand for car parts started to shoot for the skies. Most people were unwilling to put their hard-earned money into brand-new cars. They were looking at slightly used vehicles to satiate their needs.

As a result of that, the action of getting cash for cars reduced considerably and people started to keep their rust buckets for just a bit longer. They were looking to ride out the industry slump, which resulted in even more shortage in the used car and spare part market.

Declining Accidents Suppressing Demand?

New Zealand drivers have improved their driving habits over the years and the government has improved the infrastructure in such a way that the number of accidents is on a declining pattern since 1990. But could that lead to a decline in the demand for spare parts? Yes, it could!

After all, the only time when you need a spare component for your vehicle is when you get into an accident or an old part fails.

Could that lead to a possible suppression of demand? Perhaps that is the case, but looking at the post-covid era the statement doesn’t seem to be true. The chip shortage is dying, the factories are all backup and running at full steam, and the used car dealerships are emptier than ever.

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The New Zealand people, it seems are getting back to normal and whatever suppression of demand you experienced in the past few years has vanished completely.


It is clear that there is a sharp increase in demand for parts rather than a decline. From the outside, it might look like fewer and fewer people are booking car removal services but the truth is that more New Zealand folks are looking to upgrade to newer cars. Even though the average age of a vehicle in New Zealand is around 14 years you can see scrap yards full to the brim and people flocking towards them to find the relevant parts they need for their vehicles.

The trend also shows that in the future, the market situation will get a lot better and many uncertainties will die down completely.