What strategies is your organization implementing to stay competitive in the rapidly evolving automotive aftermarket?
The automotive aftermarket is currently experiencing significant transformation, driven by various shifts influencing demand for replacement parts, repairs, and maintenance. Rising vehicle ages, increasing annual mileage, and an expanding vehicle population are creating a positive short-term outlook globally. Countries like China and India are showing aggressive growth, complemented by favorable developments in North America and Europe. As customers seek greater value from their aftermarket purchases, industry stakeholders are innovating and offering targeted solutions to capitalize on this growth opportunity.
Key megatrends shaping the industry include the increasing presence of Chinese electric vehicles, the growing popularity of private labels, the integration of online and offline channels, and the diversifying vehicle population by body and powertrain types. These developments present significant opportunities for industry adaptation and success.
- The growing share of sports utility vehicles (SUVs) in the vehicle-in-operation (VIO) segment will drive aftermarket demand and revenues in the next 2 to 3 years.
- As electric vehicle (EV) incentives phase out and new model launches coupled with discounts boost sales, dealerships will increasingly shift their focus toward aftersales due to their diminished interest in the EV segment.
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Strategic Imperatives Impacting the Global Automotive Aftermarket Industry:
Geopolitical Chaos
Given the impact of inflation on part prices, labour costs, and spending cutbacks, it is imperative for industry participants to optimize their offerings to capitalize on the positive demand flow driven by changing customer ownership behaviours.
Innovative Business Models
Leveraging online-to-offline (O2O) integration and remote diagnostics capabilities to ensure sustained growth and effective servicing in the independent aftermarket (IAM).
Disruptive Technologies
Standardizing operating procedures and catalogs in the short term to pave the way for effective artificial intelligence (AI) implementation in the automotive industry in the medium-to-long term.
How are you positioning your company to take advantage of the integration of online and offline channels in the automotive aftermarket?
Download now for a comprehensive understanding of the strategies required to navigate the evolving automotive aftermarket.
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