Recently, new tactics such as design copyrights, OE part encoding, data access restrictions, and cyber-security concerns are being employed by the vehicle manufacturers to deter vehicle owners from utilizing the aftermarket for vehicle services, and to impede the aftermarket’s ability to provide equivalent services.
The aftermarket is actively involved in legislative efforts to overcome these unfair business practices and unfounded security concerns. While it is unfortunate that legislation is required, the most effective tactic the aftermarket can deploy is PROACTIVITY. We must be ready to compete with the dealerships for the future of vehicle services.
In the past, vehicle owners have come to the aftermarket for three main reasons: Proximity, Availability, and Price.
Once a vehicle owner has a positive experience with an aftermarket workshop, they will probably become a loyal customer, but it is usually one of these reasons that creates the initial opportunity. However, these reasons may not be enough to allow the aftermarket to complete in the future.
Technical Factors
A number of technical factors will affect the aftermarket’s ability to compete such as connected vehicles, alternative drivetrains, ECU access, remote diagnostics, software-defined vehicles, and the ongoing advancement toward autonomous vehicles.
Market Factors
There are also a number of market factors than will affect the aftermarket’s ability to compete such as workforce availability, growth of centrally managed fleets, increasing regulatory requirements, and new competition from online referral platforms.
Preparation to compete is not only important to attract and retain customers such as private drivers and fleet operators. Preparation is also important to attract and retain business partners such as insurance providers, roadside assistance, and even the vehicle manufacturers themselves.
Yes, the Vehicle Manufacturers can be partners with the aftermarket, but they will not be interested in partnering with us if they do not see the aftermarket as a legitimate competitor.
Currently, an aftermarket workshop relies on their technical capabilities, branding, advertising, and good customer relations to attract and retain customers. Although it is incumbent on individual workshop owners to address these requirements, it is easier if they do this as part of a proactive workshop network such as our local EUROGARAGE networks.
This approach has allowed the EUROGARAGE network to expand and flourish despite the current technical challenges and difficult market conditions. Unfortunately, this may not be enough to sustain the aftermarket in the future.
Just as our local workshop networks provide services to support the talents and capabilities of their individual workshops, GROUPAUTO International wants provide services to support the talents and capabilities of our local workshop networks. The goal is to create an international Digital Ecosystem that leverages the knowledge, experience, and business relationships of our various national networks for the benefit of all our networks.
GROUPAUTO International has decided to create an international Workshop Network Hub to enhance and support the local services provided by our national workshop networks. This hub will provide centralized services as well as links to existing local services. This will allow a workshop network to access services offered by others in our network as well as services offered by GROUPAUTO International.
These services can include operational support such as technical information, known fixes, and helpline support. Business support can also be provided to improve workshop efficiency and productivity, which are key to improved profitability. Other information can address current legislation, fleet service opportunities, and GROUPAUTO’s GNM Systems.
The best was to prepare for the future is to work together. As a network of networks of independent aftermarket workshops, we can be more than the sum of our parts.
1+1 can equal more than 2.
This is how the GROUPAUTO will continue to support our EUROGARAGE workshop networks as they compete for the future of vehicle services.
