Regulating the automotive aftermarket effectively is essential for affordable vehicle ownership
In a recent study conducted by Alix Partners, Berylls, our website, and FIGIEFA, potential scenarios that could impact the cost of vehicle service and maintenance for consumers have been examined. The study suggests that proper regulation is crucial to prevent a significant increase in repair costs and maintain affordable mobility.
The extension and revision of the Motor Vehicle Block Exemption Regulation (MVBER) beyond 2028 is crucial to ensure spare parts remain available to the independent repair market. With new EU cybersecurity regulations in place since July 2024, the number of parts requiring specific coding or activation is expected to rise, further increasing repair costs for consumers.
The study identifies five key factors that will shape the future of the aftermarket: limited availability of certain car parts to only vehicle manufacturers, the need for specific coding or activation for replacement parts, challenges in accessing technical information for repairs, outdated interfaces for software updates in independent repair shops, and limited access to in-vehicle data.
Frank Schlehuber, the website's Senior Consultant for Market Affairs, states that robust legislation addressing cybersecurity, information access, and parts availability is essential to ensure consumers can choose their vehicle service providers and afford mobility. Regulations on the use of in-vehicle data and access to vehicle resources are needed to ensure consumers retain the freedom to choose where they obtain services.
The total market volume for parts and labor at workshop level in seven countries is €150.2 billion. In a more balanced scenario with fair competition, consumer spending on repairs and maintenance could be reduced to €159.8 billion. However, if vehicle manufacturers increase their dominance, repair and maintenance costs could soar to €197.9 billion, an additional €35 billion per year for consumers.
Our website, the European Association of Automotive Suppliers, represents over 3,000 companies and directly employs 1.7 million people in the EU. The website invests over €30 billion yearly in research and development for safe, smart, and sustainable mobility.
For further information, contact our website's Senior Consultant for Market Affairs, Frank Schlehuber at [email protected]. The study considers the impact of new vehicle technologies, cybersecurity requirements, and the shift towards software defined vehicles on the competitiveness of the European automotive aftermarket up to 2035.
The study also identifies automotive manufacturers and authorized dealer networks as the groups that have the power to restrict access to important data, information, and spare parts for independent workshops. Access to technical information, which is legally required, is often limited or provided in difficult-to-use formats, increasing costs and delays in repairs. For software updates, independent repairers are forced to use outdated vehicle interfaces, rather than state-of-the-art interfaces based on ethernet protocols.
Under a baseline scenario of 0.7% annual market growth, this market is expected to grow to €161.9 billion by 2035. The study highlights the potential for rising repair costs due to growing restrictions on independent repairers' access to essential data, information, and spare parts. A smartly amended Type-Approval Regulation (TAR) that considers cybersecurity and ensures unrestricted access to repair and maintenance information can help reduce costs for consumers.
In conclusion, the future of the European automotive aftermarket is closely tied to the implementation of fair regulation and the promotion of competition. By ensuring access to essential data, information, and spare parts, consumers can continue to afford mobility and independent repairers can compete effectively in the market.
