Strategies for aftermarket players to navigate Europe’s changing auto industry

Embrace electrification and prepare for EVs

Electric vehicles are quickly becoming a central force in the auto market, and this will have a profound impact on the aftermarket. EVs have fewer moving parts and require less maintenance than traditional internal combustion engine (ICE) vehicles. The report suggests that by 2035, aftermarket costs for EVs will be around 12% lower than for ICE vehicles, primarily due to reduced demand for parts like spark plugs, oil filters, and other components no longer needed in EVs.

To succeed, independent aftermarket (IAM) companies need to get ahead of this shift. This means investing in the necessary tools and training to service EVs, as well as forging partnerships with manufacturers and suppliers focused on EV technology. As the share of EVs on European roads increases, those who can effectively service this growing market will gain a competitive advantage. Companies that delay this investment risk being left behind as EVs become more common.

Build digital platforms and strengthen e-commerce capabilities

One of the most disruptive changes in the aftermarket is the rise of e-commerce and digital marketplaces. Online platforms that sell auto parts or connect customers with service providers are gaining ground, and this trend is only expected to accelerate. According to the report, digital players like Autodoc and kfzteile24 could account for up to 20% of the aftermarket by 2030. Platforms that connect customers with repair shops are also set to grow, with their market share expected to reach up to 35%.

For traditional wholesalers and repair shops, this means they must step up their digital capabilities. Developing e-commerce platforms or partnering with existing digital marketplaces will help ensure they don’t lose ground to online competitors. Offering real-time inventory management, price comparisons, and easy online booking systems will be key to attracting today’s tech-savvy customers. Additionally, wholesalers should explore partnerships with aggregators or even create their own digital services to meet customer needs and stay competitive.

Leverage data and advanced analytics

As vehicles become more connected, data is emerging as a powerful tool for aftermarket players. By 2035, more than 80% of cars are expected to have basic connectivity, opening up new possibilities for remote diagnostics, preventive maintenance, and tailored services. OEMs will likely lead the charge in accessing and utilising this data, but aftermarket players need to follow suit if they want to remain competitive.

Repair shops, in particular, should invest in technologies that allow for remote diagnostics and predictive maintenance. By identifying issues early, shops can offer more efficient, cost-effective services to customers. Wholesalers, too, can use data-driven systems to optimise inventory management, pricing, and customer relationships. Data isn’t just a resource for larger players—small and medium-sized businesses in the aftermarket can also benefit from smarter, more personalised services driven by analytics.

Adapt to changing customer behaviour

Customer expectations are changing, and aftermarket businesses need to adjust accordingly. More and more, fleets and leasing companies are becoming significant players in the auto market. As fleet ownership rises, customers are increasingly opting for leasing programs or mobility services, which bring different priorities. Fleet managers, for instance, often focus on minimising downtime and expect quick, reliable repairs.

Repair shops should tailor their offerings to meet these evolving needs. Streamlining operations to ensure quick turnaround times, offering replacement mobility services, and providing transparent pricing for fleet customers will help build long-term relationships. Moreover, developing partnerships with insurers and intermediaries—who often steer customers toward specific repair shops—can open up new business opportunities. Insurers, in particular, are increasingly influential in where customers take their cars, making partnerships with insurance companies an important avenue for growth.

Integrate sustainability into your business model

Sustainability is no longer just a trend—it’s becoming a key driver in how businesses operate, especially in Europe. Regulatory frameworks like the EU’s Critical Raw Materials Act are pushing for greater circularity in the use of materials, especially batteries. At the same time, customers are demanding more sustainable options, such as remanufactured parts or environmentally friendly repairs. Companies that prioritise sustainability will be better positioned to win over both regulators and customers.

Aftermarket players must embrace sustainable practices to remain competitive. Wholesalers can take the lead by offering recycled or remanufactured parts and working closely with suppliers to implement more sustainable sourcing practices. Repair shops can focus on reducing energy use and waste in their operations, while Tier 1 suppliers can collaborate with aftermarket players to design components with a longer lifespan. Companies that make sustainability a core part of their business strategy will not only meet regulatory requirements but also gain the trust of environmentally conscious consumers.

Conclusion: Act now to secure future success

The European automotive aftermarket is undergoing a major transformation, and businesses must adapt to the changes or risk being left behind. Electrification, digitalisation, and changing customer behaviours are already reshaping the market. Those who invest in digital tools, adapt to the rise of EVs, and embrace sustainability will be well-positioned for success. On the other hand, companies that cling to old models and resist change may find themselves struggling to compete in a rapidly evolving landscape.

Now is the time for aftermarket players to act. Whether it’s investing in EV training, building a digital marketplace, or forging new partnerships with insurers and fleet managers, those who move quickly and strategically will be better prepared for the industry’s future. As the market continues to shift, flexibility and innovation will be the keys to long-term growth and profitability.

Source: Boston Consulting Group