European Study Shows that Affordable Mobility is Only Possible with Clear Rules for the Aftermarket

Brussels, 10th of September 2024. FIGIEFA participated today at Automechanika Frankfurt in the presentation of a study developed in collaboration with Berylls by Alix Partners and CLEPA on the future of the automotive aftermarket up to the year 2035. It was a broad-based Europe-wide study. The analysis sheds light on the dynamics of the European automotive aftermarket. It assesses the potential impact of new vehicle technology trends on the aftermarket, including the impact of cybersecurity and the software-defined vehicle. Based on Berylls' own analyses and expert interviews with FIGIEFA and CLEPA market operators, five key influencing factors (KIFs) are identified that will have a significant impact on the development of the aftermarket.
The KIFs identified are the ratio of captive parts, the impact of cybersecurity, the costs and complexity of access to technical information, the impact of software downloads and finally the impact of remote access to vehicle data, functions and resources. As new vehicles enter the market and gradually age, without regulatory measures to address the risks identified, independent aftermarket operators will become increasingly excluded from the services market, particularly for vehicles of less than six years of age.
From FIGIEFA's perspective, the implications of the study are clear - there is an absolute need for regulatory intervention by the EU to ensure that the European market for vehicle repair and maintenance services continues to function as a dynamic and competitive market which offers European vehicle owners a real choice of services. The European Commission has two legislative instruments which could be used: the Motor Vehicle Block Exemption Regulation and the Type Approval Regulation. Both need to be updated for technical progress and should address the Key Influencing Factors Identified in this study. Without regulatory intervention, technical progress will lead to market distortion, and it will be the European vehicle owners, be they consumers or European businesses, who will pay the price. This study estimates that additional annual cost at €35 Billion, just for the 7 countries(*) analysed in this study.
*The 7 European markets are: France, Germany, Italy, Norway, Poland, Spain, and the UK.
"FIGIEFA therefore calls upon the EU authorities to act to avoid market distortions", says Chief Executive Sylvia Gotzen. The implications of the results of this study are extremely serious. The Type Approval Regulation is a technical instrument which requires regular revision to reflect technical progress in vehicle technology. This is certainly the case for the provisions of Chapter XIV, where the practical requirements are defined.
Moreover, the upcoming review of the MVBER will be critical in determining the evolution of this vital sector. "Also here, FIGIEFA calls on the new European Commission to act decisively to preserve this vibrant market and to address the inherent risks of a dominant gatekeeper potentially distorting the market in their own favour."
The study can be downloaded here: https://www.berylls.com/competitiveness-in-the-automotive-aftermarket-in-the-context-of-the-technology-shift/