Driven by connectivity-based services and new players entering the scene, the digital transformation of the automotive aftermarket business is rapidly gaining momentum and scope. These and other trends were highlighted at the 8th Aftermarket conference on March 29/30, organised by CLEPA, the European Association of automotive suppliers, in Brussels.
“The share of digital products and services in the automotive aftermarket is expected to triple within the next decade, reaching almost 20%”, said Roberto Vavassori, President of CLEPA.
“The use of digital media and connectivity is now entering a new age, accelerating interaction between all market players.” Vavassori referred to the conclusions of a new McKinsey report on disruptive trends and possible scenarios for the further development of the automotive aftermarket. The study was conducted in close collaboration with CLEPA. First insights were presented at the conference and the full study will be available from June 2017.
“The value chain for spare parts and repair services, that used to be separated in an Independent Aftermarket (IAM) and an Original Equipment Sales (OES) channel, will be replaced by new collaboration models among connected market players”, added Sigrid de Vries, Secretary General of CLEPA. The key to this highly competitive and rapidly transforming market segment will be access to repair and maintenance information (RMI) and access to in-vehicle data.
In this respect, CLEPA closely follows the revision of the EU type approval regulation, currently discussed in the European Parliament and the Council of member states. Vehicle equipment information on VIN number basis and access to software and vehicle repair and maintenance information in the form of machine-readable and electronically-processable datasets are seen as important to underpin fair competition.
The CLEPA Aftermarket Conference, for the first time, gave room to small and midsize enterprises (SMEs) and start-ups to present their views and ideas with regard to new business models and data-based services around mobility. Within the ‘digital transformation’ session, CLEPA introduced an outlook on telematics services, a marketplace for data as well for services such as cyber security, intelligent transportation offerings or parking.
All of these services are based on access to in-vehicle data, either created by separate devices installed in the vehicle, or using existing vehicle technology. The Aftermarket Conference participants were given an update on the European Commission’s thinking on this topic by Wolfgang Hoefs who introduced the “Building the European Data Economy” communication published earlier this year.
CLEPA actively supports the creation of a competitive single market for data services. A level playing field will be key to support the development of innovative and competitive services by various providers in the interest of the consumers. At the same time, vehicle integrity and vehicle security and safety must be ensured at all times. CLEPA strongly supports the five guiding principles defined by the European Commission in its cooperative, connected and automated mobility platform (C-ITS).
European automotive suppliers and vehicle manufacturers are currently in a proof-of-concept phase, in order to find a pragmatic, feasible and timely solution for access to in-vehicle data and resources for third parties via neutral as well as OEM-operated back-end servers.
CLEPA is the European Association of Automotive Suppliers. 121 of the world’s most prominent suppliers for car parts, systems and modules and 23 National trade associations and European sector associations are members of CLEPA, representing more than 3 thousand companies, employing more than 5 million people and covering all products and services within the automotive supply chain. Based in Brussels, Belgium, CLEPA is recognised as the natural discussion partner by the European Institutions, United Nations and fellow associations (ACEA, JAMA, MEMA, etc.).
Facts about the European automotive industry
- Some 12 million people are employed in the European automotive industry
- European automotive suppliers directly employ 5 million people
- European automotive suppliers invest €22bn in RDI per year. They are the biggest private investor into research and innovation
- Per year, 18 million vehicles are manufactured in Europe, contributing to the stability and growth of the European economy
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