Member reports and management briefings

Used battery electric vehicles in Europe

 By Christophe Guillaneuf Management Briefing 168/25

This management briefing reports on the first phase of ICDP research focussing on the used battery electric vehicle (BEV) market across the major European countries. It covers, the market structure and sales trends for used BEVs in Europe, and also consumer expectations and attitudes toward purchasing these vehicles.

ICDP Summer Meeting 2025 - Panel session

Who has driven the most change in the automotive sector over the past decade, and who is best placed to drive the changes that lie ahead? 

By the ICDP Team Management Briefing 167/25

A summary of discussions with a guest panel on 18th June 2025

Coopetition in Automotive Aftersales

Will we see ‘coopetition’ emerge to provide aftersales coverage in franchised networks as sales network density reduces?

 By Thomas Chieux Management Briefing 166/25

This Management Briefing deals with the evolutions taking place in OEM and IAM aftersales networks, the mega trends in the European aftermarket – notably the impact of electrification and ageing car parcs – and demonstrates how a ‘coopetition’ strategy between the OEM franchised service operators and independent repairers could be beneficial for all parties. 

The battery repair and replacement ecosystem

From the battery pack state of health (SoH) through to recycling

 By Christophe Guillaneuf Management Briefing165/25

This management briefing is based on a study led by ICDP in late 2024.  It focusses on battery electric vehicles (BEVs) and their high-voltage (HV) batteries, excluding plug-in hybrid electric vehicles (PHEVs), as the market’s primary objective by 2035 under the European Green Deal is centred on BEVs. In summary, the high-voltage battery aftersales ecosystem encompasses four main operations: state-of-health (SoH) testing, repairs, replacements, and the handling of used batteries (recycling or reuse).

The Omni-Channel Cookbook

by Steve Young Special Report August 2024

Consumer pressures drive the need to offer an omni-channel customer experience for car buyers, and the digitalisation of our industry provides the opportunity to do that.  Manufacturers are also looking to reduce cost of distribution, some through the implementation of agency, but a number of the implementations have run into difficulties.  Our view is that this has more to do with the way in which the projects have been launched and managed than it is to do with the fundamental objectives.  In that context, drawing on our experience and observations, we have prepared the Omni-Channel Cookbook.  As the name implies, this is focused on making omni-channel work, rather than arguing for any specific solution or providing a status on progress made to date.  We look at the consumer drivers of omni-channel, the barriers that have been experienced to date, and how those barriers can be removed or avoided. The report is available to ICDP members to download here, or our other industry friends can request a copy by email through the Project Office projectoffice@icdp.net

We have also produced a short promo video.

OEM channel strategies to preserve their spare parts business in an ageing car parc

 by Thomas Chieux Management Briefing 164/23

ICDP often reports on the mega-trends that influence the car aftermarket, and that will impact the sector over the next decade, such as electrification of the car parc, the growing average age and better reliability of cars, their technical complexity, and changes in customer behaviour and expectations.  These elements, taken individually, could have positive as well as negative effects on aftersales demand.

Learning from demand management capabilities proven in mainstream retail

by Ben Waller Management Briefing 163/23

As carmakers begin to stabilise supply, the need to better manage new vehicle supply and demand has never been so critical, but still the supply situation is too often viewed as a market outcome rather than a managed strategy. The supply shortage, combined with pent up demand, has led us to higher transaction prices but inevitably, classical economics tells us that as supply recovers, and demand weakens, the resulting transaction price will fall at the higher volume.

The new MVBER: evolution or revolution?

by Andrew Tongue Special Report June 2023

The Motor Vehicle Block Exemption (MVBER), the EU competition rules governing franchise agreements relating to aftersales and spare parts distribution in the automotive sector, have just been refreshed for a further 5 years. In this Special Report, we take a look at the review process, give a reminder of how the rules work, look at the changes being introduced to the Guidelines that accompany the MVBER regulation itself, and give our initial thoughts on the implications for different types of player in the sector. We have also produced a shorter briefing ‘The refreshed MVBER - The European Commission updates its competition guidance around aftersales and spare parts agreements’ available HERE.

Used cars - the neglected child?

by Steve Young Special Report December 2022

In this report, we analyse some of the main markets and leading used car players in Europe, look at what differences exist in some other non-European markets, and in particular focus on why the used car business seems to be the neglected child in automotive retail, overlooked for younger, smarter siblings.

This report is available on request to non ICDP members - please contact projectoffice@icdp.net to obtain a copy.

New freedoms, but within new limits, the emerging implications of the new VBER

by Dr Andrew Tongue Special Report September 2022

Over the past couple of years, we have tracked the review and replacement process of the European Commission’s Vertical Block Exemption Regulation (VBER), the competition rules that govern distribution agreements across all sectors of business, including the automotive industry. The outgoing rules package has been assessed, changes have been proposed, feedback has been gathered, amendments have been made, and the new framework has now taken effect. In this special report, we now turn from a tight focus on tracking the detailed changes to look at the broader implications of the new VBER on the sector, and to compare the opportunities it offers OEMs in how they operate their networks with the new constraints that have been introduced to preserve fair competition.

Development of the professional relationships between the players involved in Europe’s spare parts distribution

 by Pascal Wetter and Thomas Chieux MB 162/22

The changes in the industry affecting the aftermarket have a clear impact on all stakeholders, regardless of size or positioning in the value chain or within parts supply systems.  Change is mainly driven by the gradually decreasing market size in volume and rather stable in value as a result of increasing product quality and increasing penetration of safety features, besides alternative powertrains.  The need for high investment in equipment and technical skills to cope with the ‘new normal’ in particular puts repairers under pressure, whilst changing customer behaviour and more (toughened) regulations will further limit the scope for earnings.  However, the fact that change is happening in an evolutionary way suggests that it is not too late for the sector to adapt, but this must happen now.

The 2030 aftermarket: are we getting closer to the abyss?

 by Christophe Guillaneuf MB 161/22

The automotive aftermarket faces multiple challenges through changes in behaviour and technology.  These pressures are not new, but arguably have reached new peaks over the last few years.  In an effort to track how these changes will impact the overall size and value of the market, ICDP has produced projections periodically for over a decade, and this briefing reports on the main outputs of our latest aftermarket simulation round. We first deal with the evolution of the aftermarket size and value since 2017, and provides an assessment of the impact of the COVID-19 crisis on the number of jobs across 5 European markets (Belgium, France, Germany, Italy and the UK). 

The impact on distribution of new powertrain technology choices ahead for carmakers

 by Ben Waller MB 160/22

Previously, we examined the likely impacts of electrification upon franchise dealer network economics, which suggested that with margins offered on EVs being lower than those for ICE, the existing new car business would not be viable once EVs dominate the mix. Equally, whilst used cars and especially EVs are currently highly profitable as demand outstrips supply, once the EV market becomes the mainstream used car market, competition will reduce used car profitability. EVs entering the mainstream will mean a significant reduction in both service value and repair volumes, removing the aftersales cross-subsidy that underpins franchise dealer viability, a loss unlikely to be offset by possible growth in complex bodyshop work. In total, these implications of electrification will force change through breaking the existing franchise distribution model.

The role of aftermarket third party online platforms, and how they affect the customer-repairer relationship

 by Andrew Tongue MB 159

Many different sectors have seen ‘disruption’ in recent years as online platforms have emerged to link customers and providers, bringing choice and transparency for the former, and helping the latter to expand their reach, although sometimes at the cost of squeezed margins.  The automotive aftermarket has been no exception, with platforms across the different European markets offering customers the ability to receive and compare quotes for service and repair jobs, evaluate available repairers, and then make a booking.

Developing the near term dealer model

By Steve Young MB 156

The future of the dealer model has featured highly in ICDP’s research over many years, most recently in our Dealer of Tomorrow and ‘clean slate’ work.  Both of these had a focus on what might happen in the 2025-2030 timeframe, but the dealer model has come under renewed scrutiny in recent months due to the Covid-19 related pressures on the whole industry.  Amongst the questions being asked are:

• Has the process of digitalisation in the retail process been advanced as the result of the lockdown experience?

• Can reductions in dealer fixed costs be made as the result of applying lessons learned during the lockdown period?

• Will the disruption in the market result in more dealer failures, and consequently a step change in the number of investors, dealership points or both?

• Will the timing and nature of changes in network structures be accelerated or deferred as a result of the pressures on OEMs?

Will regulation succeed in creating a level playing field in the continued battle for access to in-vehicle data?

Andrew Tongue MB 155

Connectivity is now a ubiquitous part of everyday life, and its extension into our cars has long been seen by the automotive sector as a gateway into new customer relationships and revenue models based around digital services alongside the car.  But as some of the hype around the ‘connected car’ starts to become reality in the marketplace, behind the scenes arguments still rage over which types of player should be allowed entry to the in-vehicle data and resources that connectivity will make accessible, how, and on what terms.

This Briefing illustrates how the ecosystem around the connected car is developing, and how the number of stakeholders who will be needing to work with in-vehicle data is growing.  We then focus on the latest state of play in the European-level regulatory debate around access to in-vehicle data and resources, which has seen the opposing positions of the OEMs and the independent aftermarket lobby become increasingly entrenched, and ask the question of whether a solution can be seen on the horizon.  We conclude on the steps that traditional customer-facing players in the sector need to take to help customers to step into the world of the connected car.

Independent service chains in Europe: time for a new strategy

Thomas Chieux MB 154

The scope for this research on service chains covered the top five European markets, plus Belgium and the Netherlands and we analysed three types of chains:

1. Tyre specialist chains (e.g. Euromaster) – please note that small independent tyre fitters are not included

2. Fast-fit chains (e.g. Kwik Fit, Midas) that are focused on quick fit operations

3. Auto-centres (e.g. Norauto, Feu Vert) that are basically a fast-fit workshop run together with a self-service shop selling parts and accessories

Independent online platforms: could we see a Booking.com-type operator emerging in the automotive aftermarket?

Thomas Chieux MB 153

Independent online platforms, especially ‘front office’ ones that offer services bringing together customers and repairers, have been growing across the aftermarket in recent years. This Briefing looks at where the limits to this growth might lie over the years ahead, and specifically, at the question of whether we might see the emergence of a sector-dominant Booking.com-type player in automotive repair and maintenance.