Future of Car Retailing, Aftersales & Service

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In the future, both cars and spare parts will be sold using an omni channel strategy which will combine the brick and click formats and will leverage mega trends of big data and connectivity to make the shopping experience most customised and personalised. European OEMs are leading the way in terms of digitization in car retailing—a major element considered for all of their future retailing programs. North American OEMs are still evaluating the retailing scenario and will mainly improve in-store digitization over the coming years. On the aftermarket side, global vehicles in operation will increase from 1.05 billion in 2014 to 1.32 billion by 2020, a twenty percent rise over just six years. This will drive a corresponding growth in demand for parts and service worldwide to maintain and repair these vehicles. These macro changes will also cause a shift in how OEMs and retailers service their clients with emphasis on creating a unique customer journey which connects customers though their retail experience from click to brick and then to the car through its life cycle.

Frost & Sullivan also tracks the fleet, vehicle leasing and financing markets globally. We are one of the unique consulting companies who provides coverage of this market segment through an annual tracking programme.

We track these fast-paced automotive segments both through our research programme, accessible through our Growth Partnership Service subscription, and through our custom advisory services and strategic on site client workshops.


Meet The Team

Stephen_65.jpgStephen Spivey

Research Manager

graeme_banister_65.jpgGraeme Banister

Director of Consulting – Fleet, Leasing and Finance

KumarSaha.jpgKumar Saha

Global Research Manager

Expertise Areas

Frost & Sullivan's expertise in car retailing, aftersales & service research and consulting includes work in the following strategic and operational areas.


Dealer Network Development Strategies

Defining strategies to enhance the dealer network performance throughout the entire sale process.

Pilot Retail Project Design

Design, development and roll-out of pilot projects to test and re-align new strategies to customer perception

Evaluation of Different Digital Options

Benchmarking of different digital options from various industries outside of the automotive sector.

Sales Process & KPIs Analysis

Data gathering and analysis of KPIs to take corrective actions on distribution network

Channel Strategy Development

Design and implementation of new sales strategies.

Change Management Implementation


Product and Service lines Market Analysis

Strategic analysis of products such as brake parts, filters, wipers, and impact on industry on developing technologies.

Future  Technologies

Analysis on areas such as remote diagnostics/ prognostics, mobile apps for service scheduling and management, e-retailing and Telematics.

Annual surveys of vehicle owners and service technicians

Owner attitudes and behaviours towards key areas such as Automotive Maintenance, Tools Market and Replacement Parts Preferences

360 Degree Perspective Analysis

Covering growth, impact and developments across all regions;  North America, Latin America, Europe, China, India, ASEAN and Australia.

Strategic analysis of OEMs

Understanding  OEM strategies, their role in the aftermarket, including vehicle financing analysis.

Fleet and leasing market analysis

Analysis of the Aftermarket industry within this area; strategies and developments concerned.

Price benchmarking

Product, Services, OEM and Supplier price analysis and comparison.


ride_sharing.pngFleet, Vehicle Leasing and Financing

Operating Lease

A contract, also known as a Full Service Lease or Long-Term Rental, where the Lessor accepts both the financing and residual value risk. The Lessee is responsible for selling the vehicle once the lease contract ends or when the Lessor no longer requires the vehicle (contract may be terminated early or extended beyond the initial agreed contract length)

Finance Lease

A contract whereby only the financing risk is accepted by the Lessor with the Lessee accepting the residual value risk related to depreciation (and the Leasing Vehicle Provider bears the financing risk.)

Retail Lease

A contract entered into by an individual rather than a business. Most lease contracts are taken by businesses but retail or personal leasing is a growing sector of the market being explored by Frost & Sullivan

Vehicle Finance

All forms of funding used to secure a vehicle (either outright or on a long-term contract of use). Vehicle finance is undergoing rapid disruption with new business models being introduced offering improved customer convenience (self-service, transparency) and experience (product unbundling). Frost & Sullivan is exploring this evolving market and competitor landscape

The future of vehicle retailing research group covers exciting research on how the global markets are exmpcaring the omni channel retailing strategy, analysis on dealership structures in key markets for both new and used vehicle sales but also for parts and service. The team has published several strategic research reports on these topics globally, including best practice assessment through case studies from both the automotive space but also from outside the industry like with Apple and Burberry.

The Global Aftermarket research team publishes numerous over thirty strategic reports every year covering a wide range of topics. Deliverables include Market forecasting on high-volume products such as brakes, filters and wiper blades, vehicle electronics as well as strategic analysis on emerging trends such as e-retailing and mobile technologies. The team also publishes articles for trade magazines, customer research surveys with vehicle owners and technicians, and analyst briefings featuring the team's latest work.

The research team maintains strong relationships with automotive parts manufacturers, distributors and OEMs to ensure ongoing access to information. We cover research based on Attitudes and behavioural patterns of consumers.  Its work is expanding to increase coverage of emerging markets in Africa, Asia and Latin America. Recent studies covering China, Turkey and India show that Frost & Sullivan's Global Aftermarket team can analyze opportunities for automotive parts and service in any region of the world.

The fleet, vehicle leasing and finance team providers research covering existing fleet vehicle parc and new business purchases for each year, broken down based on Ownership/funding type, Vehicle segment, Fleet size and customer segmentation. The analysis also includes market share analysis of leasing companies. Competitive analysis typically includes information about the market share analysis of major leasing companies  with the below details.

Mobility: Automotive & Transportation Analyst Briefings

Franchising in the Chinese Automotive Aftermarket, Forecast to 2022

The Chinese automotive aftermarket is likely grow at a strong pace in the next few years from 2017 to 2022. By 2022, it is forecasted that the revenue of the Chinese automotive aftermarket $281.8 billion. Currently, the average age of vehicles exceeds the warranty period (0 3 years). In 2015, the…

US Automotive Technicians Choice Survey of Replacement Parts, 2016

The importance of technicians as customers for part suppliers continues to grow with the continued expansion of the Do-It-For-Me (DIFM) channel in the US automotive aftermarket. Although the aftermarket is a mature and stable channel in the United States, market trends such as digitization and…

UK Automotive Aftermarket, Forecast to 2023

This report covers the Class 1-3 vehicles aftermarket in terms of volume (in million units) and value ($ million) across the UK. The base year for analysis is 2016 and the forecast period is 2017 to 2023.This research compiles findings from various deliverables published by Frost & Sullivan over…

Engine Oil Aftermarket, Malaysia, Forecast to 2021

The Malaysian engine oil aftermarket is likely to grow from 50.9 million liters in 2015 to 89.4 million liters by 2021 for both passenger vehicle and light commercial truck segments, recording a compound annual growth rate (CAGR) of 9.8%. The number of vehicles in operation (ViO) will increase from…

North American Class 1-8 Starters and Alternators Aftermarket, Forecast to 2023

This research service covers Class 1-8 vehicles starters and alternators aftermarket in terms of volume (million units) and value ($ million) across the United States and Canada. It discusses unit shipment, revenue, average price, distribution channel share, and market share. The base year for…

Engine Oil Aftermarket Size in Vietnam, 2015 2021

The Vietnamese engine oil aftermarket, comprising passenger vehicles and light commercial vehicles is likely to have a compound annual growth rate (CAGR) of 7.6% between 2015 and 2021, growing from 2.6 million liter in 2015 to 4.1 million liter by 2021. Both new vehicle sales and vehicles in…

Competitive Benchmarking of Select Startups in the Global Automotive Aftermarket, 2016

The global automotive startup ecosystem is witnessing rapid growth. Original Equipment Manufacturers (OEMs) are continuously scouting, investing, and acquiring startups that will be relevant to their businesses in the long term. Frost & Sullivan segments the start-up ecosystem into Electric…

Competitive Profiling of Automotive eRetailers in Americas Region, 2016

Since the introduction of eCommerce, the automotive aftermarket has been undergoing a paradigm shift, considering the market dynamics. The significant changes are: existing offline participants concentrating on sales through the online channel, online participants procuring parts directly from…

CES 2017 Automotive and Transportation Highlights

Automotive OEMs, tier 1 suppliers, semiconductor and technology companies' announcements at CES 2017 are channeled across 4 pillars, namely, Electrification, Connected Services, Infotainment/HMI, and Automated Driving. Digital speech assistance, user-based feature personalization, data monetization…

Latin American Passenger Vehicle Market Outlook, 2017

Senior management and CEO-level executives in the Latin American (LATAM) automotive value chain state as-a-service models focusing on the future of connected cars and harnessing Big Data to better serve consumers as the two biggest themes and top-of-mind-issues in the passenger vehicle market…

growthstrategy-small.jpgWe help our clients understand the implications of new retailing strategies to their current activities and develop and implement growth opportunities for them. We have worked with car companies, dealership groups,tier 1 suppliers, Aftermarket wholesalers & distributors, leasing and rental companies, corporate mobility service providers, Finance and Insurance giants and new technology pioneers to help them evaluate and pioneer new product and growth solutions using disruptive and innovative business models.

We do this through tailored and customised consulting work and strategy workshops. Projects typically involve several phases from discovery, inform, evaluate, analyse, develop and implement a business plan and growth strategy.  We use our research and industry experience coupled with well defined tools and techniques, tailored and developed by Frost & Sullivan, to manage and deliver these projects. We specialise in running growth workshops with our clients which help us take a cross functional team of our client, within span of a day from information to implementation.

Frost & Sullivan team can support your organisation on each of the following areas:
  • New retailing solutions: we can support you in the development of radically new retailing strategy that can help your business to grow.
  • Business Model: assist you with the creation of sustainable new business model to increment your value creation.
  • Competitors benchmarking: we can provide you with a detailed comparative analysis of competition in the retailing business model sector, to inform you about best practices currently carried out inside and outside the automotive industry.
  • Market Entry: Product, pricing and competitive analysis.
  • Distribution Channel optimisation
  • Sourcing and supply chain development and market analysis.
  • Technological advancement and strategic developments.
  • Support parts manufacturers and distribution groups to develop assessments and strategies to penetrate emerging markets
  • Set up a pilot for a new retailing solution
  • Evaluate opportunities within fleet, leasing and finance markets
Project Examples:
  • Delivered a growth workshop for an important OEM to present case studies from automotive and non-automotive industries and to brainstorm on future dealer network strategy
  • Supported a leading OEM in re-defining its retail network strategy throughout Europe with pilot design and implementation
  • Comparative analysis of different sales channels used by automotive and non-automotive players to understand best practice in retailing
  • Supported a leasing company in entering new emerging markets through market assessment and developing market entry strategy
  • Price benchmarking in various aftermarket channels for a leading European OEM seeking to penetrate several emerging markets
  • Competitive analysis of distributors to determine why premium OEM is losing market share on classic parts and accessories
  • Tracking study of multiple products for leading aftermarket distributor to determine its share over time across Canada
  • Analysis of brake parts for leading OEM to determine how its franchised dealers can attract more repair and service business
  • Develop recommendations to help a leading European OEM increase its sales of accessories
  • Develop strategic recommendations to maximize aftermarket potential of major Asian OEM in North America
  • Develop market entry plan for Tier 1 supplier to launch new line of sensors/electronics in Europe

We specialise in running growth workshops with our clients which help us take a cross functional team of our client, within span of a day from information to implementation. The team has run several workshop, some examples below:

  1. Supported one of the world’s largest OEMs cross brand retailing team with a workshop on creating a new on-line/off-line customer journey which involved identifying best practices both within and outside the automotive industry
  2. Helped a Japanese OEM inform their senior executives through a workshop on the challenges and opportunities with the changing retailing landscape
  3. Simulated a war room workshop with a Fleet and leasing company on competitive analysis for rolling out a new product value proposition
  4. Supported a tier 1 supplier with a workshop to enter the Aftermarket in US

We have been very impressed by Frost & Sullivan. The team showed deep knowledge and understanding of the automotive industry and the international business development environment, the focus of our company. They have literally read our minds and after recommending a strategy that leverages our capabilities to solve market needs, they delivered a business plan that perfectly brings our vision to concrete, clear goals and actions.


"Our project involved attempting to quantify the market size and growth trends in all major markets of the world for the business niche we compete in, including emerging markets. Frost & Sullivan was able to reach out to their vast global resources to conduct first hand, on the ground interviews, synthesize all of the inputs and assimilate large amounts of data into an easy to follow high level summary that pulled it all together.

"If detail was needed to validate the high level findings Frost & Sullivan could easily explain what data was acquired, what assumptions were made, how the data was interpreted and how their final product was delivered.

"Their strength comes from access to all major markets and the ability to dive into the specific industry with local experts and extract what is truly important toward meeting the deliverable.   We believe we have a solid look at our industry and are already making strategic decisions based on the findings."

Vice President Global Business Development and Marketing-VSG, Vehicle Services Group, VSG, A Dover Company

"One of the key strengths of Frost & Sullivan is their ability to cover with their global network global market demands. This gives us as a global acting company a really big benefit."

VP Collision Repair VSGNSA, Vehicle Services Group, VSG, A Dover Company

"The most significant aspect of the project for me was to validate size of market and the potential opportunities. I believe the strategy slides were especially beneficial as to assigning prioritization of efforts going forward."

Director Mktg. IT VSGE, BlitzRotary GmbH

Frost & Sullivan’s team helped us in considering current and future mobility trends, their impact to the UK, and future growth potential...Their detailed insight has been utilised by my team both internally and externally, and I would not hesitate in considering them for future mobility related assignments

IM, Rail & Marine, and Technology Strategy Board

Frost & Sullivan facilitated a Mega Trend, "macro to micro" workshop with the corporate strategy group of SMMT which comprises some of the most senior executives of vehicle manufacturers suppliers in UK. The feedback from all participants was terrific and they were particularly impressed by both the scope and depth of Frost & Sullivan's knowledge. We will be working with Frost & Sullivan further to implement some of the new initiatives identified.


Frost & Sullivan’s team were a pleasure to work with and exceeded the already high expectations we had for this project. It’s very refreshing to work with a high group that not only 'get' your business model but are able to challenge intelligently and help crystallise your thinking...we wouldn’t hesitate to use them again

Frost & Sullivan's unrivalled research, consulting, and network positions Frost & Sullivan as a leading authority on Mobility, able to support on you on several assignments.