Electrification of the aftermarket

Electrification of the aftermarket

Publication Date: 31-Aug-2023
Number of Pages: 42

The number of electrified vehicles, which include mild hybrid electric vehicles (MHEVs), plug-in hybrid electric vehicles (PHEVs), full hybrid electric vehicles (HEVs), fuel cell electric vehicles (FCEVs) and battery electric vehicles (BEVs) is growing at a rapid pace globally, especially BEVs. 

Hybrid electric vehicles undergo pretty similar service and repair processes for their internal combustion engine (ICE) systems as ICE-only vehicles do, including engine filters, oil, and brake pad changes in the aftermarket. However, for their high voltage systems, especially once the vehicle is out-of-warranty, replacement parts, especially the batteries, and/or repair expertise is currently offered only by a few companies. There are however quite a few stakeholders who trade in used high voltage parts and/or refurbish them for the market.

With regards to high voltage service and/or repair for out-of-warranty BEVs, this availability is further restricted in terms of aftermarket developed parts and servicing, with stakeholders only involved in replacement of tyres, brake pads and possibly collision repair.

As more hybrids and BEVs in operation exit their warranty periods, it is expected that the aftermarket industry will provide the required parts and service capabilities, especially for their high voltage systems, enabling owners to extend the life of their vehicles cost-effectively.

This report analyses what is the revenue opportunities are, currently and in the future, with regards to servicing and repairing of these vehicles across a variety of different strategies, including companies already pursuing opportunities in this space.

The report also analyses historic and forecasted VIO data from select countries around the world including Germany, the UK, the US, mainland China, Japan, India, Italy, Brazil, France and Mexico. The report uses data from the S&P Global Tech VIO data platform, while battery-recycling data and information and charging data is obtained from the S&P Global in-house team of battery-technology experts.

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