OES versus IAM networks: simply a matter of time?

This phenomenon acts as a buffer for independent garages. Good old combustion engines still ensure a significant volume of business for them. But this volume hides a contrasting reality, and the big winner may not be who we think it is. While combustion engines still dominate the vehicle fleet today (83%), GiPA projections for 2035 predict a complete shift. At the heart of these projections is the decline of the combustion engine, with its share falling to 48% (30% petrol, 18% diesel), versus the rise of electric vehicles, which will account for 53% of the fleet, including 21% fully electric and 32% hybrid.
Until now, independent repairers have largely dominated the field, accounting for 75% of workshop entries in Europe. But according to GiPA, electrification would put the keys to more technological and much more lucrative repairs back in the hands of manufacturer networks.

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Almudena Benedito (GiPA Group)

As a result, dealerships and their workshops will soon be taking on the higher value-added technical repairs of batteries and software, areas where manufacturers have first access to data and diagnostic tools. This is already evident in the German and British markets, where electric vehicles are more prevalent, according to Almudena Benedito, CEO GiPA Group (speaking at Equip Auto Paris). Brand networks are gaining ground with the proliferation of maintenance contracts, often in the form of long-term service contracts at the time of purchase, tying the customer to the brand's network. By 2027, the aftermarket is expected to grow faster in value than in volume: +15.3% in value and +5.3% in volume for OES, and +9.2% in value and +1.2% in volume for IAM.

While electric vehicles generally require less mechanical intervention than combustion engines, the cost of parts, specialised labour (electrical certification) and general inflation are driving prices up. In short, fewer visits to the workshop but a higher average basket value. For independent garages, the challenge in the coming years will therefore be crucial: to invest heavily in training and equipment so as not to let manufacturers benefit from the lucrative windfall of electromobility.

With 96% of new registrations being electric, Norway is a pioneering market through which to analyse the long-term behaviour of electric vehicles. In this mature market, half of the electric cars on the road are already second-hand vehicles, aged between five and seven years old. More than a third of electric vehicle owners have already used a breakdown service. The most common problems concern tyres (20%), followed by reduced battery performance (12%) and electronic failures (10%). The myth of the breakdown-free car is in tatters.
In general, the risk lies in maintenance costs. While maintenance for recent electric vehicle models is about 25% cheaper than for combustion engine vehicles, this advantage evaporates with age: for vehicles between seven and nine years old, the cost difference drops to only 10%. After ten years, the trend reverses: electric models become more expensive to maintain than their combustion engine equivalents, mainly due to the high cost of repairs related to batteries and power electronics.

Could the independent aftermarket therefore lose its customer base of used vehicle owners, which has historically been its core target? At this stage, there is no cause for concern, according to Stéphane Antiglio, president of PHE and Autodistribution (speaking at Equip Auto Paris). "Customers want proximity, affordable prices, responsiveness... It is therefore easy to understand why the independent aftermarket still accounts for 75% of workshop visits! We have no structural concerns, unless the legislator puts technological obstacles in place that favour manufacturers. Multi-branding is in our DNA."

Read the French version Réseaux OES vs IAM, une simple question de temps ?