5 Trends for the Automotive Aftermarket 2022

Last year was a challenging one for the automotive industry. The direct effects of the pandemic and the shortage of specific semiconductors caused a drop in production and sales of new models.

Nonetheless, compared to previous years, orders for electrified vehicles recorded strong sales figures, even under unideal circumstances, confirming their upward trend, substantially supported by EU structural measures.?

The aftermarket was able to profit slightly from the weakening new car business.?

?Given the development observed last year, some trends could shape 2022 from an automotive aftermarket perspective.?

?1. Digitization of the Automotive Aftermarket

This development will intensify in our more traditional industry. We expect the growth of new e-commerce platforms, be it marketplace models, new online shops for spare parts, or the sale of parts. Concepts such as digital commerce for the marketing of new models or the digital workshop for maintenance services will become established. The use of end-to-end platforms will become increasingly important.

?2. Car Park Electrification

?The rise of electric vehicles (EVs) will also affect the aftermarket. On the one hand, there will be an increase in used car dealers specialising in electronic vehicles. On the other hand, more and more independent workshops will repair and maintain EVs.

?3.?Increase of used cars sales

?Constraints in the semiconductor supply chains will continue to influence the production of new models and consequently the alternative demand for used cars, and thus also the pricing behaviour in this market. Aggressive campaigns to choose a second car or trade-in will characterise this period, complemented by cross-selling offers to, for example, include workshop maintenance services.?

?4. Professional Skills Requalification

The specific characteristics of electrified vehicles, the ever-increasing amount of electronic components even in vehicles with combustion engines, and technological progress, in general, require new qualifications or further training measures for mechanics and mechatronics engineers in the workshop.

?5. Workshop Business Model Shift

Garages need to consider introducing new business models to differentiate themselves from the competition. This manifests itself, for example, in the emergence of subscriptions for value-added services or the shift from repair workshops to mobility service centres. This development moves the traditional focus away from the car and towards the mobility needs of the customer.

Shaping the future of automotive mobility today.

?The aftermarket's actions will be shaped by the time of change, meaning that they must be capable and flexible enough to constantly adapt.

?This circumstance requires knowing how to interpret the trends correctly to prepare their company well for the future.

We thank our Portuguese partner, TIPS4Y, for researching these aftermarket trends!