A study conducted jointly with Berylls by Alix Partners, in collaboration with CLEPA and FIGIEFA, and launched at Automechanika, has examined two potential scenarios that could significantly impact the cost of vehicle service and maintenance for consumers.
The study underscores the potential for rising repair costs as authorised dealerships gain greater dominance. This shift is driven by growing restrictions on independent repairers’ access to essential data, information, and spare parts. To prevent a significant increase in repair costs and to maintain affordable mobility, proper regulation is crucial.
The study, which analysed the competitiveness of the European automotive aftermarket up to 2035, considered the impact of new vehicle technologies, cybersecurity requirements, and the shift towards software defined vehicles. From expert interviews with key stakeholders, and Berylls’s own analysis, the study identifies five key factors that will shape the future of the aftermarket:
1. Limited availability of certain car parts to only vehicle manufacturers
2. The need for specific coding or activation for replacement parts
3. Challenges in accessing technical information for repairs
4. Outdated interfaces for software updates in independent repair shops
5. Limited access to in-vehicle data
The cost of vehicle repair is rising
Replacing defective parts is a standard service in the aftermarket. However, CLEPA and FIGIEFA have observed an increasing number of parts that can only be sourced from vehicle manufacturers. These parts often require specific coding or activation, which can add significant costs to repairs. With new EU cybersecurity regulations in place since July 2024, the number of such parts is expected to rise, further increasing repair costs for consumers.
Moreover, access to technical information, which is legally required is often limited or provided in formats that are difficult to use. This increases costs and delays repairs, making current legislation ineffective. For software updates, independent repairers are still forced to use outdated vehicle interfaces, rather than state-of-the-art interfaces based on ethernet protocols.
CLEPA’s Senior Consultant for Market Affairs, Frank Schlehuber, states: “To ensure that consumers retain the freedom to choose their vehicle service providers, robust legislation that addresses cybersecurity, information access, and parts availability is essential. This will help ensure affordable mobility for EU citizens.”
Potential market scenarios and their impact
The study examined data from seven countries, with a total market volume of €150.2 billion for parts and labour at workshop level. Under the baseline scenario of 0.7% annual market growth, this market is expected to grow by €161.9 billion by 2035. However, if vehicle manufacturers increase their dominance, experts predict that repair and maintenance costs could soar to €197.9 billion – an additional €35 billion per year for consumers in these countries. This would make affordable mobility increasingly inaccessible.
In a more balanced scenario, where fair competition is maintained, consumer spending on repairs and maintenance could be slightly reduced to €159.8 billion. This reduction would be particularly beneficial for the adoption of battery electric vehicles, ensuring that the shift to more sustainable mobility remains affordable.
The role of legislation
The ongoing development of vehicle technologies is strengthening the proprietary position of vehicle manufacturers, making it crucial for legislators to act. The extension and revision of the Motor Vehicle Block Exemption Regulation (MVBER) beyond 2028 is paramount to ensure that all spare parts remain available to the independent repair market. Additionally, a smartly amended Type-Approval Regulation (TAR) that considers cybersecurity and ensures unrestricted access to repair and maintenance information can help reduce cost for consumers. Finally, regulations on the use of in-vehicle data and access to vehicle resources are needed to ensure consumers retain the freedom to choose where they obtain services.
