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Global OEM Aftersales 2.0 - Comparative Benchmarking of Adoption of New Parts and Service Business Models, 2017

  • Report

  • 109 Pages
  • April 2018
  • Region: Global
  • Frost & Sullivan
  • ID: 4521814

Multi-brand Parts Sales and Innovating with Vehicle Servicing Strategies will be Key for OEMs to Sustain Aftersales Revenue

The aim of the study is to understand the current transition and to predict future trends in global automotive OEM aftersales segment. As older cars shift to the independent aftermarket primarily due to an aging vehicle population and high cost incurred, OEMs have to strategize their aftersales programs to sustain their market share.

Research Scope:

  • The objective of this study is to research, analyze, and predict key strategies for OEMs in the automotive aftermarket in 2017
  • To understand the multiple business models and customer engagement activities of OEMs in the automotive aftermarket
  • To understand the shift in OEMs approach towards aftersales and services
  • To assess the current and future changes in the automotive aftermarket with respect to OEMs

Research Aim: The goal of the study is to understand key strategies of OEMs for parts sales and servicing and benchmark key participants’ activities in the automotive aftermarket channel.

Research Highlights:

The study covers the major OEMs approach to enhance their aftersales revenues, with detailed case studies. It also compares the various features and services offered by major OEMs. the comparison is region specific for North America, Europe, and Emerging Markets. the study also covers the recent developments in aftersales by OEMs and how the future of aftersales will evolve by 2030.

All major OEMs are focusing on improving their aftersales business primarily through two approaches. the study discusses the approaches in detail and also covers the various strategies implemented under each approach. With activities such as PSA’s DISTRIGO, service aggregator business model, and telematics-enabled aftersales, the European region leads in terms of OEMs aftersales transition. Furthermore, in-vehicle telematics not only enables revenue generation but also enables continuous customer engagement activities, thereby offering a competitive advantage to OEMs, which the IAM lacks. This not only deters the customers’ shift to independent aftermarket but also enables OEMs to get data about the vehicle in real time, thereby helping them in diagnosing vehicle issues easily.

OEMs are capitalizing on such core competencies and additionally replicating the IAM business model to improve their revenue through aftersales. the study discuss in detail about such initiatives taken by major OEMs globally.

Key Issues Addressed:

  • What are the major challenges for OEMs in the automotive aftermarket and how are these being addressed?
  • What are the major changes in OEMs aftersales and services?
  • What are the different business models adopted by major OEMs?
  • What are the services offered by major OEMs?
  • How will the automotive aftermarket evolve in future?

Table of Contents

1. Executive Summary
  • Key Takeaways
  • Global 0-11 Year Old Vehicles
  • Global Average Vehicle Age
  • OES Challenges and Strategies
  • OEM Aftersales Transition
  • Aftersales 2.0 Pillars
  • OEMs Moving from Parts Sales and Service to Solution Provider

2. Research Scope, Objectives, Background, and Methodology
  • Research Scope
  • Research Aims and Objectives
  • Key Questions this Study will Answer
  • Research Methodology

3. Overview of Global OES Channel
  • OEM Aftersales Transition
  • Aftersales 2.0 Pillars
  • eCommerce-Overview
  • Marketplace & Pure Play Participants
  • BMW Direct eStore
  • eCommerce-Business Opportunity
  • eCommerce-Future KPIs
  • IAM Parts-Overview
  • Ford’s Omnicraft
  • IAM Parts-Business Opportunity
  • IAM Parts-Future KPIs
  • New Service Models-Overview
  • Ford’s Quick Lane
  • New Service Models-Business Opportunity
  • New Service Models-Future KPIs
  • Digital Engagement-Overview
  • Chevrolet Owner Center
  • Digital Engagement-Business Opportunity
  • Digital Engagement-Future KPIs
  • Connected Repair-Overview
  • GM OnStar
  • Connected Repair-Business Opportunity
  • Connected Repair-Future KPIs
  • Service Marketplaces-Overview
  • Amazon Service Marketplace
  • Service Marketplaces-Business Opportunity
  • Service Marketplaces-Future KPIs
  • Strategies Adopted
  • Strategy Assessment Matrix

4. OEM Aftersales Strategies-Penetrate and Expand in IAM
  • Omnichannel Approach
  • Omnichannel Approach-Examples
  • IAM Focused Parts
  • IAM Focused Parts-Examples
  • Parts and Services for Multi-Brand Vehicles
  • Parts for Multi-Brand Vehicles-Examples
  • Warranty Period & VSC
  • Warranty Period & VSC-Examples

5. OEM Aftersales Strategies-Retain Customers from Shifting to IAM
  • Subscription Services
  • Subscription Services (Toyota Safety Connect)
  • Faster Service Options
  • Faster Service Options (Renault Minute)
  • Faster Service Options (Tesla OTA Updates)
  • Faster Service Options (Ford Mobile Servicing)
  • Demographic Focused Services
  • Demographic Focused Services (Nissan’s Lady First Dealerships)
  • Improving Customer Experience through Digitization
  • Improving Customer Experience through Digitization (AR)
  • Improving Customer Experience through Digitization (Big Data)
  • Improving Customer Experience through Digitization (UBI)
  • Preventive Maintenance and In-vehicle Diagnostics
  • Preventive Maintenance and In-vehicle Diagnostics (VW Car-Net)

6. Comparative Benchmarking of OES Activities
  • Comparative Benchmarking of OEMs in North America
  • FordPass
  • Comparative Benchmarking of OEMs in Europe
  • Case Study-BMW Marketplace eStore
  • Case Study-PSA Push to Pass Strategy
  • Case Study-Daimler’s Unified Digital Platform
  • Comparative Benchmarking of OEMs in Rest of World
  • Case Study-Direct eStore by Mahindra & Mahindra
  • Case Study-Ford SYNC
  • Case Study-Faster Service Option

7. Towards Aftersales 3.0-OEMs in 2030
  • OEMs Moving from Parts Sales and Service to Solution Provider
  • Mobility as a Service-Services, Business, and Pricing Models
  • OEM Mobility Strategies-An Overview
  • Evolution of OEM Capabilities
  • Current Trends and Future Outlook for Mobility Services

8. Growth Opportunities and Companies to Action
  • Growth Opportunity-Offer Services Similar to IAM Participants and Capitalize on OEM Advantages
  • Strategic Imperatives for Success and Growth

9. Future Outlook
  • Key Conclusions and Future Outlook
  • The Last Word-3 Big Predictions
  • Legal Disclaimer

10. Appendix
  • Abbreviations and Acronyms Used
  • Strategy Assessment Matrix-Description
  • Market Engineering Methodology
  • List of Exhibits

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Amazon
  • AR
  • Big Data
  • BMW
  • Chevrolet
  • Daimler
  • Ford
  • GM
  • IAM
  • Mahindra & Mahindra
  • Nissan
  • PSA
  • Renault
  • Tesla
  • Toyota
  • UBI
  • VW