The aftermarket and the EV wave

On August 28–29, 2024, MEKO hosted themed days in Norway focusing on the aftermarket and the EV wave: current status, lessons learned, and the road ahead. During the event, several key topics related to the transformation of electric vehicles and the adaptation of the independent aftermarket were discussed: What effects has the transition had so far? How do declining new car sales and hesitant consumers impact the market? What can we expect in the future?

Lessons from Norway – electrification and its impact on the automotive aftermarket

The electrification of the automotive industry is gradually transforming the aftermarket landscape. As the European automotive market is projected to reach €220 billion by 2024, with an annual growth rate of 4.5 percent through 2030, electric vehicles (EVs) are becoming an increasingly significant part of the market, although it’s still in the early stages.

Norway is the European country where electrification has advanced the furthest. As the market leader in Norway, MEKO has gained valuable experiences and insights that indicate how the independent aftermarket will be affected long-term. These experiences may also point the way for how the market will develop in countries like France, Germany, and Italy, where the EV share of the total car fleet remains low.

Despite initial concerns that electrification could reduce demand for aftermarket services, MEKO’s experience in Norway reveals a different reality. The costs of maintaining EVs over their lifetimes are likely to match or even exceed those of traditional vehicles. This shift means that the independent aftermarket must adapt to new demands, such as servicing high-voltage components and managing the increased wear on tires, suspensions, and brakes caused by the heavier weight and higher torque of EVs.

Preparing for a sustainable future

At the same time, sustainability is becoming increasingly critical in the automotive aftermarket, driven by rising stakeholder expectations and a wave of new regulations like the Corporate Sustainability Reporting Directive (CSRD) and the Right to Repair Directive. These changes are impacting all industries, including the automotive aftermarket.

MEKO is proactively addressing these challenges through a solid strategy and various initiatives, including setting ambitious science-based climate targets, transitioning to low-carbon vehicles, and committing to using 100 percent renewable electricity by 2025.

The importance of innovation

As EVs become more prevalent, innovation is crucial for the independent automotive aftermarket. One example is remote diagnostics technology, which enhances the efficiency of vehicle repairs and supports workshops. This technology allows workshops to diagnose and repair vehicles without needing physical access, which is particularly valuable for servicing the complex systems found in EVs. By providing workshops with the tools and training needed to handle these vehicles, MEKO ensures that EV owners have access to the same level of service and convenience as those with traditional vehicles.

MEKO’s position in the transition

As the automotive industry shifts toward electrification, MEKO is positioning itself as a leader in adapting to these changes. By focusing on the specific needs of EVs, advancing sustainability initiatives, and innovating with remote diagnostics and digital customer solutions, MEKO is well-equipped to thrive in the evolving aftermarket landscape.