Electric cars don’t get good press. Some voices are being raised against these cars for their environmental, social and economic impacts, and a study predicts that once again. Roland Berger and Clepa released in September 2022 some alarming figures for the European automotive aftermarket, and especially spare parts. Because yes, the challenge of electrification must of course be taken up by the manufacturers, but also the equipment manufacturers, who risk being disappointed in the coming years, just like distributors and repairers.
Electric cars need 30% fewer spare parts
In close connection with the rules from Brussels and the cessation of sales of new thermal vehicles from 2035, 100% electric cars already account for around 10% of the market share in Europe. And their weight will logically grow. It would reach 82% of new vehicle sales in 2030 under the electrification scenario ” the fastest “ of the study. On an industrial scale, it’s tomorrow!
The study, called “Electrification of passenger cars: blessing or curse for the aftermarket in Europe? “, claims that the 100% electric vehicle will reduce the purchase of spare parts by 30%. Compared to total revenue may decline by 13 to 17% in 2040 compared to 2019, before the start of the Covid crisis, depending on how quickly BEV registrations will multiply. The elements that will amputate sales are of course the mechanical components, that is, those linked to the complexity of the internal combustion engine, but of course also to the gearbox, the exhaust and the fuel intake. These items will experience a sharp decline to gradually disappear from the catalogs. Conversely, the demands on suspension and tires may increase in connection with the greater weight of electric cars, which accelerates their wear and tear.
While the future of some equipment and parts distribution players is compromised, opportunities are up for grabs in power electronics, charging-related parts and batteries. The latter will be the most expensive to change with its lifespan of 8 to 12 years and a price that can remain high, from 3,000 to 15,000 euros. This market could reach 4 billion euros in 2040 for electric and rechargeable hybrids, according to Roland Berger.
READ. Electric car. The challenge of repairing high voltage batteries.
Workshops specializing in electricity will be developed
“It will be particularly important for aftermarket players to develop remanufacturing and repair options for battery systems, electric motors, electric axles and power electronics, says Frank Schlehuber, senior market consultant at Clepa. We expect to see a shift in aftermarket services from hardware to software. Predictive maintenance will also gain more relevance as the battery is safety-critical. »
Manufacturers were able to regain a share of the aftermarket that they had gradually left to their subcontractors (60%). Some of these equipment manufacturers, which have not begun to diversify into electricity, may be at risk, according to experts. It should also be noted that there is an opportunity for diversification for parts distributors in the recovery and recycling of used components. For their part, repairers will also have to adapt and invest in equipment and training, up to 200,000 euros for brand mechanics. The firm says that workshops specializing in electric cars should develop alongside traditional workshops which will only offer basic repairs to these new vehicles. The consumer will benefit from this weakening, which will lead to a reduction in the cost of maintenance services. But until when?