Published on : 09 July 20203 min reading time
The emergence of connected and autonomous electric vehicles is in the process of disrupting the automotive aftermarket. Changes in consumer behaviour, digitalisation and fierce competition in this market are driving the main automotive players to innovate and develop new digital maintenance and after-sales service tools. Automatic appointment booking, remote diagnosis, predictive maintenance… new essential after-sales service tools are emerging, promoting customer loyalty.
The major trends that are reshaping the market
Vehicle connectivity will be a key driver for retaining existing customers and winning back lost customers. The growth and development of IoTs creates many opportunities, which are increasingly being exploited by the automotive industry.
E-Commerce will generate additional B2B and B2C revenues throughout the after-sales chain. Even if most purchases are made offline, more than 7 out of 10 drivers initiate their purchases online. Therefore, to remain competitive, car manufacturers must innovate and diversify their connected services to reach a wider range of customers and ensure sustainable growth.
The automotive aftermarket will have to respond to new consumer expectations, particularly those of Generation Y: services and products that are better suited to the lifestyle, ultra-personalization and lower prices.
The development of electric vehicles is changing the nature of the vehicle fleet. The new high-tech electric vehicles have a better range and offer many benefits in terms of driving comfort and price.
What are the impacts on after-sales service providers?
The development of e-commerce is fundamentally reshaping the automotive aftermarket and giving way to new aftermarket players.
OEMs have an important role to play in the aftermarket. They are the main competitors of car manufacturers, who depend on them to manufacture their own vehicles and supply their parts. To face tough competition, some of these equipment manufacturers have developed their own workshop franchises, allowing them to capture the value not only of the part price, but also of the repair service, which corresponds on average to 35% of the final price spent by the customer.
The main challenge for original automotive parts distributors is to expand their customer base and market share. To stand out from the competition, some of them do not hesitate to acquire independent distributors and establish partnerships with start-ups specialising in specific areas such as customer behaviour management.
E-Tailers are the new market leaders in Do It Yourself (DIY) and Do It for Me (DIFM). These online parts and accessories retailers have established new automotive standards based on consumer experience (low prices, fast delivery times, part availability…). Thanks to innovative partnerships and the overhaul of their distribution model, e-Tailers are preparing to become formidable competitors in the automotive aftermarket.
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