Business 32 www.aftermarketonline.net SEPTEMBER 2024 Cashing in on road to opportunities Marc Russell, CCO of FixMyCar, looks at how sustainability can drive business in the aftermarket — and offers tips on how garages can benefit The automotive aftermarket is a diverse and dynamic industry, encompassing spare parts, accessories, and components sold for vehicle maintenance and enhancement. These aftermarket parts are categorised into three main types. Original equipment (OE) parts are produced by the vehicle manufacturers themselves. Original equipment supplier (OES) parts are designed and built by third parties, but meet the specifications set by the vehicle manufacturers. Lastly, non-original equipment parts are manufactured by independent companies aiming to replicate the design of OE and OES parts, ensuring compatibility with a wide range of car makes and models. There is a growing demand for customisation products to enhance the look and performance of cars, with drivers no longer just wanting to choose paint colour and the type of upholstery. In 2023, Ferrari saw €460 million (£395m) of their total net profit driven by customisation. Not just in the luxury sector but more widely, consumers want the latest automation systems, the most sophisticated tyres or efficient engines with the power to match. As a result, aftermarket components have additional needs, including sustainable materials, extended safety and complex functionality. With more than 300 million vehicles on Europe’s roads alone, garages, mechanics and dealerships must adapt their operations to remain competitive. However, the dynamic automotive ecosystem presents opportunities and challenges for businesses. Here are some tips on how to stay ahead. EVs need the talent to match Electric vehicle adoption is gathering pace despite challenges around cost, battery capacity, range and charging infrastructure. Data from banking group UBS shows European EVs will become the dominant powertrain choice in 2030, with sales predicted by investment firm Jefferies to reach 8.3 million. The rise in popularity is attributed to many factors, including increased choice of models from countries like China and consumers being more receptive to greener modes of transport. The need for specialist skills increases as more EVs join Europe’s roads. Complex software knowledge and engineering are required to manufacture and maintain batterypowered vehicles. Not only that, but post-pandemic recovery, digital progress and changing customer ownership behaviour all contribute to high vacancy rates. This skills gap presents an opportunity for mechanics to focus on specialist abilities by investing in training and certification. Garages can position themselves at the forefront of this expanding market, incentivising mechanics by offering to subsidise their training. These specialised EV services can attract a new customer base, increase revenue, and ensure garages lead an evolving industry. Longevity driving innovation There is a growing trend in the aftermarket design process where Marc Russell, CCO of FixMyCar Staying up to date with online workshops
RkJQdWJsaXNoZXIy MjQ0NzM=