IAM’s Autopromotec event provides industry perspectives “Beyond failures”

During the seminar “Prospects of the aftermarket in all and beyond” during the panel IAM – International Aftermarket Meetings, held in coordination with ANFIA (Italian Association of Automotive Industry) and CLEPA (European Association of Automotive Suppliers), Autopromotec offered global analysis. It provides an accurate picture of the current market followed by an analysis of possible scenarios for aftermarket professionals in the near future.

Presented a seminar by Massimo Pellegrin, coordinator of the ANFIA Aftermarket, ANFIA section, which covers all activities of the association related to the world of automotive parts. Nicola Morzenti, partner of strategic consulting firm Roland Berger, quickly entered the world of the aftermarket, providing audiences at the prestigious FUTURMOTIVE Arena (Hall 22) with a detailed view of the current macroeconomic context with particular emphasis on its long-term automotive sector. The presentation began with the remark that, despite many other sectors, the car market consistently withstood the pandemic, also due to the increase and aging of the fleet, and forecasts for the next five years predict market growth.

The analysis also shows a steady increase in independent secondary market share compared to OEMs, although new trends may become challenging for independent companies in the next decade.

Morzenti’s extensive speech also examines the various factors that have led to limited margins of independent suppliers to the market over the past three years: macroeconomic trends, global automotive trends, and increased competition.

Macroeconomic trends are primarily related to the uncertainty of production volumes due to the shortage of microchips and COVID-19, as well as the war in Ukraine and rising costs of raw materials and energy. All these aspects will create additional pressure and uncertainty on the margins of the independent market.

As for global automotive trends, electrification is currently a major challenge for the aftermarket sector. Sales of electric vehicles are growing rapidly, although the impact on the overall fleet will be felt only over a longer period of time. In the future, given that electric vehicles will be equipped with more valuable components than conventional cars with internal combustion engines, but in much smaller quantities and require less maintenance, there may be a significant reduction in turnover for independents.

At the same time, digitalization presents itself as a potential opportunity, which to date seems to have been largely the prerogative of manufacturers. For a connected car to be an opportunity for an independent market, it must have free access to data. What will happen next will be decided by future legislation in this regard.

With regard to trends in the sector’s competitiveness, the constant search for new profits pushes manufacturers to enter the aftermarket even more decisively through certain initiatives, which may include extending guarantees, offering new services and creating their own aftermarket. . channels to attract new customers. The analysis also highlights the impact of new mobile solutions such as “Car as a Service” and “Mobility as a Service”, which will increase the need for integrated services from end to end.

Finally, the resilience and profitability inherent in the secondary market are also attracting new players such as e-commerce platforms; this will eventually lead to more players being involved in the secondary market. On the one hand, it will be bigger, but on the other hand, the profits will be divided between several entities. In response, existing independent market players will need to form partnerships with the global fleet, using additional strengths such as capillary network and expanding product range.

After this extensive and in-depth market analysis to better examine how the market responds to all the changes that are taking place, Autopromotec brought together various automotive supply chain representatives for a roundtable discussion that definitely caught the attention of the IAM workshop audience. CLEPA moderator Frank Schlehuber, the round table was a unique moment of confrontation between the leaders of some of the world’s leading components, distribution and shop networks. Dayco, LKQ Europe, Metelli and Motrio presented a complete and diverse view of the market, consisting of clear perspectives, and offered an interesting insight into how to best prepare for the challenges facing the industry.

In particular, the speakers commented on key topics at the moment, such as their business forecasts for recovery after the pandemic, business strategy related to the electrification trend, industry competitiveness, and shortages and growth of raw materials. costs.

To prepare for the challenges of the future, Ruger Semol, Director of Dayco’s EMEA aftermarket, stressed the importance of diversification. A diversified approach to the market that extends to various aspects of the business, such as opening up to new customers micromobility, partnering with companies operating in the fuel cell sector and, more generally, expanding the portfolio of products that are also suitable for new motorization. Ruger Semol also focused on the great resources that the aftermarket business has always enjoyed, and on how important this is to ensure freedom of choice for the motorist.

According to Ferdinand Imgoff, Chief Product Officer of LKQ Europe, the approach should be fast, active, but above all holistic, at all levels of the supply chain, based on strong partnerships with suppliers and customers and targeted training support for workshops facing technological challenges. and digital transitions. Full cooperation, from the manufacturer to the end customer, guarantees success in the secondary market. As for new market players, especially B2C e-commerce platforms, their presence will increase commercial pressure, thus contributing to motorists. According to Imhoff, these new players will not particularly affect the independent after-sales service market, and its logistics savings will be the key to success in this multi-channel business scenario.

Sergio Metelli, CEO of Metelli SpA, believes the value of the family business has been crucial to making quick decisions, especially in such challenging times as a pandemic. Metelli has managed to maintain high standards of customer service thanks to high levels of inventory, which gives the company a competitive advantage. Investments in research and development are also strategic to offer the market a portfolio of products to meet the needs of future mobility. Metelli’s growth forecasts in the secondary market also confirm Roland Berger’s forecasts, albeit with an unknown factor of new technology and commercial challenges.

Olivier Pontro, director of Motrio Retail, gave an idea of ​​the market in terms of a network of independent garages that are successful in the market due to their flexibility, competitiveness and trust that they manage to establish with the motorist. Panthro also stressed the importance of having independent garages be part of a network that supports their marketing and training activities. The economic crisis will give an even bigger impetus to the independent secondary stock market, which, however, will have to prepare for the creation of a car fleet in which the presence of hybrid and electric vehicles will increase in the next five years. The ability to financially analyze your business is also fundamental for workshops, avoiding devaluation of labor costs in favor of profitability on spare parts only. In fact, at some point, it’s likely that new records will hit the market by becoming Ubers or Deliveroos car service. Workshops need to be ready for new business models.