ISSUES
The European aftermarket is an important source of profit for European
vehicle makers and major Tier 1 suppliers.
In addition, the aftermarket supports a number of significant independent
distributors and suppliers and provides an important opportunity for
non-European suppliers looking to establish and develop their European market
presence.
The European Union's changes to Block Exemption regulation present new and
important challenges and opportunities to participants in Europe's aftermarket,
and will expected to result in a major restructuring of the sector.
This major new report examines the changes that are taking place in the
aftermarket in Europe and includes an assessment of the extent to which
international trends are shared in western Europe.
The report also reviews the emerging developments in the European
replacement aftermarkets through a detailed examination and product forecast of
12 key areas of the vehicle:
- Air conditioning
- Batteries
- Braking
- Clutches
- Exhaust systems
- Filters
- Glass
- Lighting
- Rotating electrics
- Shock absorbers
- Spark plugs
- Wipers
With improved quality parts, cars are being driven for longer, reducing
aftermarket demand for wear and tear parts. As a result, franchise dealer
networks are struggling to maintain their market share. This trend is due mainly
to declining parts usage in cars in the 0-4 year range, which form their key
customer base. These vehicles are accounting for a reduced proportion of the
vehicle parc as the tail of older vehicles grows longer.
The Do-It-Yourself (DIY) market is also in decline across Europe as the
increased complexity of cars and rising disposable income combine to make home
repairing less attractive. These pressures have produced a range of responses
with different degrees of success. Many dealers have tried to emulate the fast
fit operations, offering while-you-wait services for owners of vehicles over
three years old.
New product areas such as air conditioning, navigation and multi-media
systems offer growth opportunities and are attracting new entrants.
Fundamental changes are also occurring at the wholesale level. The formation
of pan-European buying groups is seen as a defensive move in response to the
strong competitive forces from vehicle makers, fast fits and auto centres.
Buying groups are a distinctive feature of the European wholesale distribution
channel.
The report looks at the potential impact of these groups and how the
manufacturers will respond to market and regulatory changes in the market place.
It also evaluates the opportunities for parts manufacturers and buying groups
who can enter and develop new markets, providing new scope for volume growth.
This report examines the pressures facing first tier suppliers to the
aftermarket and asks:
- How are the first tiers responding?
- What new strategies are they following?
- How do the big supplier names in the OEM marketplace expect to increase
sales in the aftermarket?
The report also looks at:
- Block Exemption rule in Europe
- Implications for independent garages
- Growth of in-car vehicle electronics
- Impact of the Internet on the aftermaket business
The report profiles the major component manufacturers with significant
activities in the vehicle makers and key independent chains. The report also
looks at vehicle manufacturer aftermarket activities.
It will be of interest to all involved in the European aftermarket in vehicle
service and repair parts as well as in manufacturing, distribution and
retailing.
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