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The Gen Z customers will drive the market of auto aftermarket parts and services digital platform because of their interest towards easy and fast service will be enabled with the help of their mobile phones
In recent times, incremental changes have been witnessed by the automotive industry owing to the advancement in technology and lowering the gap between automotive and technology industry. Startups have changed the way in which industry once functioned. The new companies are bringing the advancement in technology and also trying to change the conventional business model.
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The startups for automotive domains usually fall under different categories such as in-vehicle technology i.e. connected car, augmented reality, telematics, batteries and charging, mobile applications, service aggregators, automotive diagnostics equipment, and others. In addition, based on the change in dynamics, aftermarket parts companies are also focusing on innovation in terms of auto components, fuel injection system, replacement parts and others.
The US-based company CARFIT, operating from Oregon has developed automotive diagnostic equipment to detect vibrations in the car, noises from the car, and harshness from the vehicle operator to provide a complete picture of vehicle performance. The unique selling point for CARFIT is to gauge multiple parameters and provide effective diagnostics on the used cars. This technology has witnessed an investment from the European service chain company called Norauto and the U.S. based Jaguar Land Rover. The technology by CARFIT will allow the customers to plan and prepare for tentative car repairs and services which will further allow to monitor the replacement parts, auto components, fuel injection system and others.
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A US-based company called PartsTech headquartered in Massachusetts, has developed a digital platform to connect with the repair shops, do the research for the parts and also order the parts from the same platform. The company allows its uses to access to all the part dealers which was previously restricted to the professionals in the industry. Furthermore, the company is also helping the parts dealer who first used to do the business on the phone. PartsTech has enabled their users with the digital platform. The digital platform helps the dealers to save time and effort in product explaining and negotiating. The digital platform provides an explanation with respect to the product also showcases the 360-degree view. In the medium to long term, the company is expected to target heavy-duty vehicle replacement parts, any other auto components, fuel injection system and others
Another US-based company called ShiftMobility, operating from California has developed a platform which connects customer with purchase, servicing, and installation of aftermarket parts. The company has connected the complete value chain on a single platform from supply chain partners to retail. The company has also signed a partnership agreement with eBay. This suggests that all the auto components or the aftermarket parts to the service centers will be supplied through eBay.
U.S. is leading with respect to the number of startups in the aftermarket domain. The startup ecosystem for the aftermarket is expected to witness a number of digitally enabled products and platforms to provide services such as commerce, aggregation, and others. In addition, the platform which provides higher transparency will win in the future. The Gen Z customers will drive the market of auto aftermarket parts and services digital platform because of their interest towards easy and fast service will be enabled with the help of their mobile phones.
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