Connectivity and EVs: A new era for the aftermarket
The rise of connectivity and the gradual transition to electric vehicles (EVs) are set to reshape the automotive aftermarket, offering significant growth opportunities, observed an automotive aftermarket leader.
Connectivity is poised to have the biggest impact on the aftermarket industry, according to Paul McCarthy, president of MEMA Aftermarket Suppliers. Speaking at the group’s Technology Conference, he emphasized that connectivity offers the opportunity to make products more attractive and convenient for consumers.
“Digital disruption is really a convenience revolution sweeping across all business sectors,” he noted during the conference, which was held virtually. “The goal is to meet consumers’ desires more easily, making tasks like car repairs less of a hassle.”
He pointed to the Automotive Aftermarket in 2035 study which concluded that the future holds more efficient supply chains and more satisfied consumers, thanks to technology. This includes parts waiting for repairs and remote diagnostics, where experts can diagnose issues from afar. The rise of mobile repair services is just the beginning, as connected vehicles continue to expand.
EVs were also expected to be a disruption but that’s not the case anymore.
“So what EVs were supposed to be was a revolution, a lightning strike that changed everything for our industry instantly. Instead, we’re finding it’s an evolution. It’s a shift that will happen over time,” McCarthy observed.
He pointed out that the panic of a few years ago about having nothing to repair on an EV turned out to be unfounded.
“While sometimes different things break, they still seem to be breaking and sometimes the same things break even with more frequency or a greater dollar value,” he explained. For instance, replacement rates on Tesla tires or control arms, and the growing value of EV cooling and HVAC systems, highlight the ongoing need for repairs.
McCarthy pointed to Consumer Reports data that show EVs and plug-in hybrids often have more problems than conventional internal combustion engine vehicles. He also highlighted J.D. Power’s Vehicle Dependability Study as supporting this, finding that EVs are the least dependable by a wide margin, followed by plug-in hybrids, hybrids and then conventional gasoline vehicles.
He added that he sees a long future for both internal combustion engine and electrified vehicles. The increased complexity of vehicle technology and parts supply is expected to benefit the aftermarket industry significantly.
“So all of this is projected to give a long tail from for the product categories that we already know and sell,” McCarthy said.
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