Executive Briefings 2018
ICDP’s Executive Briefings - high-level summaries of our insights on the full range of programme topics - are available for all to read and download. If you make use of them in your own material, please remember to attribute ICDP as the source.
Used electric vehicles: just another used car market?
Christophe Guillaneuf EB 13/18
The future of the used BEV market currently depends largely on an acceleration of new BEV sales, but will the market work in the same way as that for used ICE vehicles? Or will vehicle technology and different ownership/usage patterns bring new features to the used car market?
Performance and future role of the national importer organisation
Steve Young and Pascal Haubenreisser EB 12/18
We have been looking at the current performance of National Sales Companies (NSCs), Independent Importers and Joint Ventures (JVs) across the European markets, and asking whether increasing market convergence, dealer network decline, sales channel evolution and changing customer behaviour will lead to a transformation in their role over the next 5-10 years. Can we expect to see further centralisation of activities at OEM HQ level in search for greater efficiency, or will some functions always be based on a by-market basis? Is there a case for reviewing the choice between an NSC and an Independent Importer?
Charting the consolidation of the European parts distributor market
René Herrmann EB 11/18
The ongoing consolidation in the independent aftermarket parts distributor sector is leading to national and international ‘super distributors’ with significant economies of scale. How far will the consolidation process go, and what will the parts distributor landscape look like in a future, more mature market?
Business challenges for the UK crash repair sector in the face of declining volumes
Steve Young and Alex Cunningham EB 10/18
The crash repair market in the UK is approximately £4.5 billion in annual revenue, with around 4,000 bodyshops, but also a network of parts and service suppliers. It generates significant profits for some on the supply side, but often pain for other players. This pain is going to increase in the future, and the profits reduce, as the result of a series of fundamental structural changes that will affect the sector.
Understanding subscription
Ben Waller EB 09/18
Several OEMs are in the process of piloting and rolling out new subscription-based services, as part of wider experimentation in offering car-as-a-service and mobility. Typically, they provide customers with exclusive access to a car, including all related services, but underneath the bonnet, there are two very different types of offer currently being marketed as subscription.
What will be the impact of the new WLTP and RDE tests for car fuel consumption and emissions on vehicle manufacturers, consumers and repairers?
Thomas Chieux EB 08/18
The old test for light vehicle fuel consumption in Europe – the New European Driving Cycle (NEDC) is being progressively replaced by the new Worldwide Harmonised Light Vehicle Test Procedure (WLTP). What will this attempt to get closer correlation between ‘test cycle’ and ‘real world’ consumption mean for the various stakeholders?
The impact of electric vehicles on dealer workshops: no need to panic (at least not before 2025 …)
Christophe Guillaneuf EB 07/18
The overall aftersales needs of BEVs is repeatedly claimed to be much lower than those of ICE vehicles. Surely then, as more customers gradually switch into BEVs, this will cause a significant fall in workshop revenues for franchised dealers, to the point of threatening their viability? Recent ICDP research has explored the aftermarket impact of BEVs in detail and has concluded that the story is not so black and white as is often depicted.
Large dealer group development: the pursuit of scale
Pascal Haubenreisser EB 06/18
We recently looked at the development of sales and service networks for all brands in the 36 European markets and in particular at the evolution of large dealer groups in terms of their performance and strategic actions to secure their position and improve their long-term performance. The need for scale to develop and strengthen the business has been recognised by a number of players who have found growth opportunities, despite an overall negative trend in network sizes.
Evolving regulatory picture around access to customer and car data
Andrew Tongue EB 05/18
Much of our aftermarket research has to do with the dynamics of competition between the different players in the franchised and independent sectors, competition that is being made more complex by the addition of a new factor – data generated by the car and its driver in the course of its use. This has turned into a major regulatory debate at European level, and is set to remain a prominent topic over the years ahead as more connected features roll out across the car parc.
The COTY case: how recent legal judgements may impact on the development of online channels
Andrew Tongue EB 04/18
There is much discussion in the automotive sector at the moment about online channels, and their role within the customer’s car buying process, up to and including the final transaction. How OEMs or brand owners can steer what their dealers/distributors do online has been a growing question in competition policy, and the question has featured in a number of court judgements at both member state and EU level over recent years.An interesting recent case, which is of direct relevance to the automotive sector, saw the European Court of Justice uphold a luxury brand owner’s decision to prevent its distributors from selling the contract products via 3rd party platforms. What could the implications of this be?
modelling the economics of car-sharing questions the prospect of return on investment
Ben Waller and Christophe Guillaneuf EB 02/18
Our analysis of car-sharing schemes concluded that existing schemes have a persistent issue in delivering profitable growth. In order to address some of the questions related to the viability and scalability of car-sharing schemes, we developed a financial model that takes account of key metrics including revenue, usage patterns, subsidies, investment and operational costs. We examined three different types of car-sharing schemes to explore the variables of membership size, scheme flexibility, and geographical location.
Are manufacturer investments in mobility concepts justified?
Ben Waller and Christophe Guillaneuf EB 01/18
Manufacturers are now frequently talking about fundamental shifts in their products and how they are consumed. Many are trialling alternatives to existing ownership or leasing models – including new subscription and sharing based membership offers. Some are now forming comprehensive mobility strategies; the most advanced and integrated arguably being Daimler Mobility Services which houses a number of initiatives within a standalone subsidiary (now merged with BMW’s similar unit), and more recently Volkswagen, who have named their new mobility services brand Moia.