Business 15 www.aftermarketonline.net DECEMBER/JANUARY 2025 by electrification and new competition arriving from China, the one absolute that manufacturers can rely on for the next decade or more is escalating aftersales demand. Supporting the independent market The ever-extending life of a vehicle is great news for the independent trade, but it is also a compelling opportunity for manufacturers and dealers. To provide customers with that essential first-time fix, independent garages need fast, reliable access to an array of parts and equipment. Technicians know that genuine parts sourced directly from a franchise dealer are more likely to fit and work first time. And, while few customers understand the difference between genuine and non-genuine parts, they would much prefer to have genuine parts fit to their vehicle if the price is right. What’s needed is not only the ability to deliver the right part, at the right price and at the right time to give an independent repairer the confidence to present the customer with a price and to schedule the fix, but to become the trade’s first choice. For the franchise dealer, there is an enormous opportunity to do so much more than make it easy for independents to access the ‘must have’ genuine parts. The foundations are in place. The challenge is to take the existing parts department from efficient order-taking to a proactive, profitable sales operation that delivers significant incremental revenue in the aftersales arena. Extending trade parts sales Building on the long-established concept of loyalty-based trade incentives, manufacturers can rapidly enhance their aftermarket services. The most successful programmes are moving beyond the sale of genuine parts, not only to include all-makes models but also to promote add-on products such as oils, coolant and consumables that the independent garage would not traditionally purchase from the franchise network. Using sales and marketing expertise and data intelligence to better understand pricing, marketing and loyalty models, the scheme can provide both manufacturer and franchise dealer with significant additional revenue. Building loyalty delivers more than a significant revenue boost. There are strong benefits to be obtained from building closer relationships between manufacturers, dealers, and independent garages. Adding technical expertise and advice, for example, to the provision of genuine parts, will provide a mechanic with far greater confidence in achieving a first-time fix. This not only boosts their own customer ratings; it improves the brand perception of the second and third owners who are unlikely to have a relationship with the original dealership. The cost and speed to repair reflect not only the skills of the repair shop but also the long-term value of that vehicle — something that can reinforce a driver’s brand value and commitment. Stronger bonds with garages Given the challenges facing the industry over the next 15 years, from the evolution to EVs to the rise of new market entrants from China and the growing demand for sustainability, this mature car parts market offers a compelling opportunity to boost revenue. It also provides a way to build stronger bonds with the independent garage network and, through these businesses, with customers that have never had a direct brand experience before. But to maximise this opportunity, automotive manufacturers need to embrace and adopt a mindset shift. Last year’s sales should not be a benchmark. This is a 10- to 15-year opportunity to achieve a step change in aftersales that could safeguard profits during this time of transition and provide an important ongoing role for the franchise dealership networks. Build on loyalty-based trade incentives to rapidly enhance aftermarket services
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