Tips4y anticipates the trends for the aftermarket in 2024
Trends
The Portuguese economy will not be growing as in 2023, decreasing from the 2.2% in last year to a forecast of 1.5% in 2024. Despite the expected decrease in inflation, we are living in uncertain times and our purchasing power and investment capacity will still be conditioned.
These criteria will determine the business opportunities for the automotive aftermarket, in the same way as in 2023 the impact of inflation and the cost of credit influenced the demand for used vehicles and, in turn, the ageing of the vehicle parc. In 2022, according to ACAP data, the average age of light vehicles was 13.4 years and 63% were more than 10 years old.
One of the measures planned for 2024 that could bring some dynamism to the circulating car parc is the returning of the incentive to end of life vehicle scrapping, now also available for used vehicles, if they are 100% electric vehicles and less than four years old.
Besides the economic factors and all measures planned for 2024, we highlight the effect of some initiatives already underway, such as electrification promoted by EU legislation, the change in automotive brand agency model in Europe and digitalisation as a factor in transforming business, particularly in the automotive aftermarket.
Tips4y anticipates the trends for the aftermarket in 2024
https://www.tips4y.pt/en/blog/tips4y-anticipates-the-trends-for-the-aftermarket-in-2024 /en/blog/tips4y-anticipates-the-trends-for-the-aftermarket-in-2024
Top trends for 2024 according to Tips4y
DIGITALIZATION OF THE BUSINESS ECOSYSTEM
The implementation of digital solutions in different areas - from internal processes to stakeholder interactions - will continue to innovate the digitalisation of the sector, especially in businesses where profitability margins are clearly boosted by the dematerialisation of processes and by traditional operating procedures.
IMPACT OF ELECTRIFICATION
The advance of electrification will require the redesign of businesses that still maintain a traditional approach – from workshop repairs to parts distribution and tire commerce – where productivity management will take into account the paradigm of new vehicle models (lower level of wear with impact in the maintenance plans and repair services).
SUSTAINABILITY
In 2023, the sustainability was the central theme or topic of debate, in anticipation of specific legislation, that will force companies to consider its impact as one of the great challenges, and with which there will have to be efforts and adaptation strategies, whether in the decarbonization of mobility or in the implementation of related solutions, such as the so-called “green parts” (original used parts) in the circular economy.
ARTIFICIAL INTELLIGENCE (AI)
The latest advances in AI applied to increasing productivity is seen as an opportunity to attract, retain and reskill professionals in the aftermarket, through new management skills and efficient processes that result in innovative working practices across the different departments.
Tips4y anticipates the trends for the aftermarket in 2024
https://www.tips4y.pt/en/blog/tips4y-anticipates-the-trends-for-the-aftermarket-in-2024 /en/blog/tips4y-anticipates-the-trends-for-the-aftermarket-in-2024
Build the future of automotive mobility
In a changing industry due to technological changes, where customer habits changed along with an ambitious european regulation framework, it is critical to know how to interpret the signs and future trends that will shape the future of business.
To make sure you don't miss the news about Tips4y and about the future of automotive aftermarket, subscribe our newsletter and follow us on Linkedin, Facebook and Instagram.
