Delphi Technologies outlines electrification opportunity for the Aftermarket

Neil Fryer, vice president and general manager for the global aftermarket business at BorgWarner Aftermarket talks EV trends

We are currently seeing some of the biggest changes we have ever seen in the aftermarket.

The most significant of these is undoubtedly the shift towards electrification, with many vehicle manufacturers and governments seeking to end sales of petrol and diesel vehicles.

Although the introduction of highly complex electric vehicles will require a complete shift in workshop mindset and skillset, it won’t happen overnight.

While electrification might be a cause for concern for some customers who may feel they are not prepared for the transition to an EV world, they do have time to prepare.

In recent surveys, Delphi Technologies Aftermarket asked customers around the world what they perceived as their biggest challenge when it comes to electrified vehicles.

A third were concerned about keeping up with the latest technology.

Therefore, to close the talent and skill gap, stakeholders must partner up to make the right investment in business, training, and equipment.

The aftermarket is evolving from being a pure parts and components provider to being service driven.

Of course, electrification will have an impact, and it will require the aftermarket to adapt, but this will take several years, and will not happen as fast as it will in the original equipment (OE) market.

In the meantime, the aftermarket can prepare, in order to be successful and grow in the long-term.

This also means workshops should invest in enabling a digital customer journey and, at the same time, consider building a new customer service mindset.

By 2030, I would estimate that around 80 per cent of vehicles on the road are likely to be internal combustion engine (ICE) vehicles, even with adoption rates for electric vehicles accelerating.

Furthermore, the increase in the number of aging vehicles is a significant opportunity for the aftermarket, and we see that the chip shortage is impacting the number of new vehicles being manufactured.

This will inevitably lead to additional repair and maintenance opportunities for the independent aftermarket.

With plenty of opportunity for organic growth in ICE, the aftermarket should invest in recruitment, training, and equipment to develop their ability to manage the increasing technological complexity of next-generation electric vehicles.

The aftermarket for electrified vehicles is in its infancy, so ICE will remain the cash generator.

Aftermarket businesses should seize the opportunity that the next few years brings to develop their capabilities and generate revenue so they can invest in their future.

At Delphi Technologies, we have made an investment in smart mobility through a venture capital (VC) fund to capitalise on this fast-growing segment.

Delphi Technologies has joined forces with NEXUS Automotive International and Future Mobility Ventures (FMV) to invest in high-tech start-ups that are focused on using smart mobility technologies to offer aftermarket solutions.

Delphi Technologies can help workshops and garages become fit for the future in times of e-mobility and increased electrification, combining the best of both worlds: a rich OE heritage and innovative aftermarket solutions – we will open access to the very latest vehicle technologies with the right OE parts, diagnostic tools, test equipment, technical support, and training.

For further details, please click here.


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