[Atlas] Stellantis: “The aftermarket is multi-faceted, so is our response…”

How is the deployment of Distrigo around the world going?

Sylvie Layec: Today we have 170 Distrigo hubs, 145 Distrigo Relay points and 35 Distrigo Markets. This combination is designed to allow us to deliver our parts to our garage customers within less than 45 minutes. It is of course in Europe, where Distrigo was born, that this is the most well developed with 134 Distrigo hubs, 115 Distrigo Relay points and the first 35 Distrigo Markets. In Western Europe, we still have to beef up the system to guarantee last mile delivery. Globally, we are adapting our system with the same objective of quickly delivering to all garages.

The approach is adapted to each market. We will get back to you during the first part of 2022 to detail Stellantis Group’s future strategy in terms of parts and services; it will benefit from the synergies and best practices of our two previous groups.

What will be the impact of electrification on global aftermarket activity?

S.L.: We must be careful not to judge the global aftermarket in terms of Europe and, more broadly, mature automotive markets. As an indication, the global passenger car and LCV parc represented 1.4 billion units in 2019. Electric vehicles, including full-EV and hybrids, represent only 2%. Under pressure from legislation, environmental imperatives and growing consumer demands, this figure is expected to triple over the next decade. But this means that by 2030, when the global car parc will have reached 1.6 billion units, this increase of 14% would translate to a share of just 6% of electric vehicles running on the planet’s roads. You say it often enough in your articles the level of inertia is great. In 2030, the world parc will have nearly 100 million full-EV and hybrid vehicles, but fifteen times more ICE vehicles. Over the next decade, the market will also put 100 million new ICE cars models on the road. Stellantis Parts & Services wants to be able to address, with a range of parts and solutions including electric vehicles, an after-sales market estimated today at 1,000 billion euros excluding VAT at world level (consumer prices). This is 50% parts and 50% labour and which will grow again considerably. With the four pillars of our parts offering – original parts, Eurorepar, parts suppliers and parts from the circular economy – we already have 1.2 million references available today.

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Is your aftermarket organisation model applicable across the board?

S.L.: The relative nature and weight of the major global aftermarket markets are very diverse. In size and / or value, continental Europe dominates, followed by the United States and China, which already accounts for nearly 50% of the European market. MEA (Middle East & Africa), South American or Indian parcs are ageing, while China’s is emerging with a growth rate of nearly 25 million new cars per year for a parc that is only seven years old. Each large region therefore needs a complete offer that can be adapted in stages to these market differences to take local expectations and differences into account. Our response to the evolution of the aftermarket is agile and pragmatic. Maintenance and repair needs in Europe, which will have around 22% electric and hybrid vehicles in 2030, will not be the same as in India or South America. Even less so in China, which is rapidly electrifying its parc.

Can you give us an example of this pragmatic agility?

S.L.: In China, we have acquired distributors and forged strong local partnerships, which allows us to position ourselves as the fourth player in this market which is beginning to consolidate. In Argentina, we rely on a recognized joint-venture partner.

To respond to demand, we initiated a pilot project in Belgium and the UK with Distrigo bodyshop hubs. As part of the development of our multi-brand Eurorepar Car Service network, we have also launched a co-branding plan. For example in Denmark with the Quick Point network, now a “Eurorepar Car Service Partner”. At the end of October, Eurorepar Car Service had more than 5,700 member garages, an increase of 340 in ten months. This includes nearly 4,200 across Europe as a whole. In China, nearly 800 Eurorepar Car Service centres are in operation, to which can be added more than 450 multi-brand garages from DPCA (Dongfeng Peugeot Citroën Automobiles). The aftermarket is multi-faceted, so is our response. l

Jean-Marc Pierret

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