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Future of Automotive Retail & Aftersales

The business of selling cars, parts, and services is undergoing tremendous disruption at every level. From omnichannel retailing and digital dealers to the Uberization of services, the downstream automotive eco-system is expected to be completely transformed over the next 10-15 years.

OEMs, suppliers, and other traditional industry stakeholders are future-proofing themselves by adopting some of the emerging business models. However, the pace of disruption is being set by industry outsiders, such as Amazon, who are increasingly threatening and dismantling accepted models.

Latest Research

Our Automotive Retail Group covers exciting research that include:

  • Digital retailing models and future evolution of car sales across OEMs
  • Analysis of changing dealership structures in key markets for new and used vehicle sales
  • Analysis of new business models (e.g. fintech) and disruptors
  • The team has published several strategic research reports on these topics and beyond for various global markets.

The Global Aftersales Group publishes numerous over thirty strategic reports every year covering a wide range of topics including:

  • Market analysis of various product categories
  • Assessment of new business models – e-commerce, telematics, connectivity, service aggregation – on aftersales
  • 360 aftermarket reports on emerging markets such as Asia, Latin America, and Asia
  • Voice of customer surveys

The fleet, vehicle leasing and finance team provides 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

Strategic Overview of the Automotive Aftermarket in Poland, Forecast to 2024

This study covers the Class 1-3 vehicles aftermarket in terms of volume (in million units) and value ( million) across Poland. The base year for analysis is 2017 and the forecast period is 2018 to 2024. This research covers the growth prospects for the Polish automotive aftermarket. It includes…

 
Analysis of NAFTA Restructuring and its Impact, 2018

Over the past 50 years, the North American automotive industry has become strongly integrated between Mexico, Canada and the United States. Canada and the US signed the Automotive Products Agreement in 1965, which led to the gradual reduction of trade barriers and paved the way for greater…

 
The Impact of EVs and PHEVs on the European Automotive Aftermarket, Forecast to 2025

This study focuses on the ramifications for the European aftermarket because of EVs and PHEVs in the vehicle parc. Analysis is done on how replacement parts demand and aftermarket revenue will be altered due to EVs and PHEVs. The geographic scope of the study is Europe and the base year is 2017. The…

 
Australian Automotive Aftermarket Trends, 2018

The Australian automotive aftermarket parts distribution is witnessing a steady growth; Australia has some of the leading Original Equipment Suppliers (OES) who are continuously on the lookout for establishing their mark in the region s aftermarket space with mergers and acquisitions in the region.…

 
Impact of EVs and PHEVs on the North American Automotive Aftermarket, Forecast to 2025

This research study focuses on the changes to the aftermarket in North America due to the current and expected future proliferation of EVs / PHEVs. The deliverable analyses the effects on parts and services revenue from the EV / PHEV vehicles in operation. The geographic scope of this study is North…

 
United States Automotive Technicians Choice, 2017

This study covers the independent automotive aftermarket vehicle service technicians choice of tools. The survey was conducted using a computer-assisted telephone interview methodology during July 2017. Respondents represent automotive repair shops throughout the United States. Shop types include…

 
Competitive Profiling of Key Aftermarket Buying Groups and Distributors in the EU5, 2017

The European automotive aftermarket parts distribution is witnessing a rapid growth. Europe is home to some of the leading Original Equipment Suppliers (OES) that are continuously on the lookout for buying groups and distributors that align with the philosophy of the company. Frost & Sullivan…

We help our clients navigate both their tactical and strategic imperatives essential for growing their business. From data-driven modeling of product demand and pricing to new retailing strategies, we can support a client in the development and implementation of growth opportunities.

We work with car companies, dealership groups, tier-1 suppliers, aftermarket wholesalers & distributors, leasing and rental companies, corporate mobility service providers, finance giants and new technology pioneers to help them evaluate and pioneer new product and growth solutions using disruptive and innovative business models.

We engage with clients through customized consulting projects and strategy workshops. Projects typically involve several phases from discovery, inform, evaluate, analyze, develop and implement a business plan and growth strategy.  We use our research and industry experience coupled with well-defined tools and techniques to manage and deliver these projects.

Frost & Sullivan team can support your organization in each of the following areas:

  • Development, feasibility analysis and implementation of New Retailing Solutions
  • Business Model Benchmarking, Development and Adoption Scenarios
  • Competitor Benchmarking: What industry stakeholders are doing in retailing and aftersales, how competitors are disrupting your markets and gap analysis for your organization
  • Dealer Optimization and KPI Improvement
  • Go-to-Market Strategy: Product, pricing and competitive analysis
  • ·         Distribution Channel Optimization
  • Parts Pricing Analytics
  • Sourcing and supply chain development and market analysis.
  • Support parts manufacturers and distribution groups to develop assessments and strategies to penetrate emerging markets
  • Evaluate opportunities within fleet, leasing and finance markets

We specialize in running growth workshops with our clients which help us take a cross-functional team of our client, within a span of a day from information to implementation. The team has run several workshops, 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 a 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.

Foresight

“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.

SMMT

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.

So what will the industry look like in 2020 or 2025?

Frost & Sullivan predictions

These transformations present both opportunities and challenges. Frost & Sullivan’s global retail, aftersales and leasing group has the right experience and expertise to support your organization’s strategic imperatives, and help you identify risks and unlock the market’s true potential.

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$50 billion worth of parts and accessories will be sold online globally by 2020

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More than 70% of vehicle sales leads will be digital by 2023

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Beyond 2020, digitization will enable lead conversion ratio improvements of more than 80%

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Over 1.3 billion vehicles will be in operation across the globe by 2020

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Investments ranging from $500 million to $5 billion are expected from several OEMs and select dealer groups to improve in-store digitization

We can engage and partner with you in the following ways:

Growth Partnership Service

Provide access to individual studies or subscription services

Growth Consulting

Customized advisory services encompassing research, strategy and implementation

Growth Workshops

On-site engagement and interactive brainstorming with your organization’s executive teams

We have a global footprint with local, on-ground experts who rigorously track trends and markets in various regions including the Americas, Europe, India, China, ASEAN, the Middle East, and Africa.

Some of our most recent client collaborations include:

Frost & Sullivan’s expertise in business strategy & innovation includes work in the following strategic and operational areas.

Development of a Retail Toolbox for a European OEM

Dealership Assessment and Optimization in Russia for a European dealer group

Development of a global parts ecommerce strategy for a US-based OEM

Parts pricing data collection and analytics in emerging markets for various OEMs

Development of an online B2B platform for parts for a global e-commerce company

Our Automotive Retail Group covers exciting research that includes:

The team has published several strategic research deliverables on these topics and beyond for various global markets.

  • Digital retailing models and future evolution of car sales across OEMs
  • Analysis of changing dealership structures in key markets for new and used vehicle sales
  • Assessment of disruptors and new business models, including fintech

Our Global Aftersales Group publishes over thirty strategic research deliverables every year that cover a wide range of topics including:

The fleet, vehicle leasing and finance team provides research on existing fleet vehicle parc and new business purchases for each year, segmented by ownership / funding type, vehicle segment, fleet size and target customer. The analysis also includes market share and competitive analysis of major leasing companies.

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Market analysis of various product categories

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Assessment of new business models – e-commerce, telematics, connectivity, service aggregation – and their impact on aftersales

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Voice of customer surveys

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360° analysis of the automotive aftermarket in emerging markets of Asia, Latin America and Asia

Expertise Areas

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

Dealer Network Development Strategies and KPI Analysis

  • Analyzing the performance and efficiency of established dealer networks based on pre-defined and new (digital) KPIs, to include geographic position and resulting ‘halo’ effect on the network
  • Defining strategies to enhance the dealer network performance across the entire sales process, both online and offline

Pilot Retail Project Design

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

Evaluation of Different Digital Options

  • Benchmarking of different digital options and best practices from various industries outside the automotive sector
  • Redesigning the customer journey in the automotive eco-system, evaluating digital touchpoints in both click and brick environments
  • Pre-sales, sales and aftersales across North and Latin America, Europe, the Middle East, India, and China

Sales Process and KPIs Analysis

Data gathering and analysis of KPIs to take corrective action across distribution networks

Channel Strategy Development and Pilot Management

  • Design and development of new sales and channel strategies across different retail formats and geographies
  • Roll-out of pilot projects to test and re-align new strategies to reflect customer perceptions and feedback
  • Dealership roll-out, implementation, and training programs

Change Management Implementation

Product and Service Lines Market Analysis

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

Future Technologies

Analysis of 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 behavior toward key areas such as automotive maintenance, tools market, and replacement parts preferences.

360° 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, including significant trends and strategies.

Price Benchmarking

Price analysis and comparison of products, services, OEMs, and suppliers.

Global Aftermarket Outlook

  • Macro-level view of the aftersales environment across various regions with actionable data and forecasts on market revenues, vehicles in operation, and disruptive trends
  • Regions include North and Latin America, Europe, the Middle East, India, China and other APAC countries, ASEAN, and Australia
  • 360° deep dive analysis of high priority individual regions and countries, particularly emerging markets

Parts Category Management

  • Data driven modelling of market demand and revenue by various parts category
  • Competitive analysis and outlook for parts categories
  • Parts categories include: Filtration, Brakes, Starters and Alternators, Engine Management, Chassis, Sensors, Electronics, Wipers, and Others

Voice of Customer Surveys

  • Comprehensive, annualized tracking of buyer behavior in purchase of parts and tools
  • Survey respondents include installers, fleets and vehicle owners

Competitive Profiling of Aftersales Stakeholders

  • Detailed benchmarking of various OEMs, suppliers and distributors / retailers
  • Future strategy analysis covering private labelling; economy line parts; eretailing; and new business models

Digital Transformation in Aftersales

  • Tracking evolution of disruptive forces in aftersales across telematics; ecommerce; digital retailing; advanced technology in the bay; Big Data; and emerging business models
  • Detailed analysis of new market actors including start-ups; tech companies; and mass eretailers

Parts Pricing Analytics

  • Data collection and analytics modelling in major global markets with particular expertise in emerging markets
  • Customizable, interactive digital platform for data delivery and analytics

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 initially 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 that is 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 that offer improved customer convenience (self-service, transparency), and experience (product unbundling). Frost & Sullivan is exploring this evolving market and competitor landscape.

Global Fleet Market Outlook

  • Macro-level view of the fleet & leasing environment across various regions with actionable data and forecasts on vehicle registration, vehicles in operation, competitive environment and disruptive trends
  • Regions include: Europe (including Turkey), Russia, North and Latin America, India, China and other APAC countries, ASEAN, Australia, North, and South Africa
  • 360° deep dive analysis of high priority individual regions and countries, particularly emerging markets
  • Fleet market trends and dynamics covering emerging markets analysis, future of industry, growth opportunities/areas

Market Data Analysis

  • Online, customizable and interactive platform with actual and forecast data providing funding analysis with a focus on company cars (true fleet)
  • Data related to operational leasing, financial leasing, fleet management and private/retail leasing
  • Analysis of portfolio volumes of leading leasing players based on product types such as operational leasing, financial leasing, and fleet management
  • Analysis of vehicle types including passenger vehicles and light  commercial vehicles (up to 3.5 tons)
  • Data for 35 country markets
  • Customizable data analysis on fleet markets by powertrain, customers, and vehicle type

Competitive Analysis

  • Detailed benchmarking of vehicle financiers such as OEMs, leasing companies, mobility service providers, and other vehicle financiers such as banks
  • Future strategy analysis covering the future positioning of companies in the eco-system, consolidations, mergers, acquisitions, and partnerships

Meet the Team

Senior Vice President, Global Automotive Aftersales & Retail

Dr. Julia Saini

Julia Saini joined Frost & Sullivan in April 2001 and is one of the founding members of the European Automotive & Transportation Practice. In her current role as Vice President Mobility, she is responsible for leading Frost & Sullivan’s Global Aftersales and Retail Programme Area, with a strong focus on digitization, e-commerce and new business models. Julia is highly experienced in leading global strategy engagements with a strong focus on project excellence and unconditional client satisfaction. Julia is trilingual and holds a Master (LLB, LLM) and Doctorandus in Law (Dr.).

Director, Global Automotive Aftersales & Retail

Kumar Saha

Kumar focuses on the evolution of the automotive industry in areas of digitization, connectivity and new business models – with an emphasis on their impact on retail, aftersales and shared mobility. Kumar regularly advises senior executives from automakers, suppliers, retailers, financial institutions, and tech companies. Kumar is recognized as a thought leader in the automotive industry. He speaks regularly at conferences and is often quoted in media. Kumar also sits on the executive committee for the Automotive Aftermarket Suppliers Association’s (AASA) Mobility Technology Council. Kumar is based in Toronto, Canada.Director, Global Automotive Aftersales & Retail

Program Manager, Automotive Aftersales

Anuj Monga

Anuj is a thought leader and works on various aspects of the automotive aftermarket industry, in particular on the category management, aftermarket replacement, channel management and upcoming technologies such as telematics and eCommerce of parts and services. In his role as the Global Program Manager at Frost and Sulliva, Anuj works very closely with different stakeholders in the client side advising them on strategic decisions to attain growth in their aftermarket business. He speaks at global conferences and has been quoted by different publications over the years for his research especially on topics like digitization in service marketplaces, online retailing of parts and remanufacturing.

Principal Consultant, Automotive Aftersales EIA

Avijit Ghosh

Avijit primarily focuses on the European passenger, commercial, and off highway aftermarket segments and regularly advises senior executives from automakers, parts suppliers, distributor buying groups, private equity firms, and technology companies covering both B2B and B2C domains. Avijit specializes in the evolution of the automotive industry in areas of digitization, connectivity and new business models – with an emphasis on their impact on automotive aftersales and lubricants industries. Avijit is recognized as a thought leader in the automotive industry and is often quoted in the press. Avijit holds an MBA degree and comes from an Engineering background.

Program Manager, Commercial Vehicles Aftersales

Stephen Spivey

Stephen focuses on research and consulting partnerships in the global commercial vehicle aftermarket, with an emphasis on emerging regions, new product and service opportunities, and the impact of telematics and mobile communication technologies. He is also a highly sought consultant in the automotive aftermarket for his depth and breadth of category management research. Stephen has presented his research to top executives in the aftermarket industry and appears on television to discuss a wide range of automotive news topics. He holds the Automotive Aftermarket Professional (AAP) certification from University of the Aftermarket/Northwood University. Stephen is based in San Antonio, Texas, USA.

Consulting Director, Automotive Retail

Aymeric Duval

Aymeric combines a unique and successful experience of various managerial strategic and operative roles in Sales & Marketing at OEM side and disruptive projects execution at business consulting side. He focuses on the evolution of the automotive industry in the areas of innovative brand strategy, marketing efficiency, seamless customer journey, customer loyalty management, digitalization of sales, dealership sales performance and retail transformation overall. Aymeric regularly advises senior executives from automakers, suppliers, retailers, financial institutions and tech companies. Aymeric is recognized as strong experienced business leader in the automotive industry and is based in Frankfurt, Germany.

Principal Consultant, Automotive: Automotive: Digital Transformation & Retail

Yeswant Abimanyu

Yeswant is responsible for developing the ‘Automotive: Digital Transformation & Retail’ Program Area. His work spans topics including Digital Retailing, Digital Products & Connected Automotive Platforms, Automotive Megatrends, Digital UX & Customer Journeys, Platform-enabled Mobility solutions, Dealer network optimisation, and Digital Strategies for City Mobility. Yeswant regularly advises senior executives from automakers, suppliers, retailers, financial institutions, and tech companies. He is a regular speaker at industry-leading automotive conference. He also is a Member of the Global Fleet Advisory Board Latin America. Yeswant is based in London, UK.

Senior Consultant, Automotive Business Strategy & Retail

Isaac Abraham

Isaac advises clients on digital automotive retail and finance solutions across new vehicles, pre-owned vehicles and aftersales service. Isaac’s mission is to understand what’s next, and navigate change for automotive companies by formulating digital business strategies that focus on delivering tangible results. Isaac is recognized as a digitization influencer in the automotive industry and is widely quotes in the press. His brings with him the experience of having worked with CEOs and executives to grow brands they represent across leading and emerging automotive markets.

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