How big is the impact of EVs on the aftermarket?

Despite rising sales, electric vehicles struggle to penetrate aftermarket product volume. As a result, according to a recent report, EVs have yet to make a significant impact on the aftermarket.

While they have made strides in the new car and light truck market, Lang Marketing noted that the presence of EVs in the aftermarket remains minimal. Despite a growing share of new light vehicle sales, EVs contribute only a small fraction to the volume of aftermarket products, it said in its report, EV Aftermarket Impact Barely Flickers.

Several factors contribute to this disparity, the group noted. First, more than 96 per cent of aftermarket product sales, excluding tires and accessories, come from vehicles at least four years old. Older vehicles, particularly those eight years or older, generate significantly more aftermarket product volume per mile than their newer counterparts.

Electrics haven’t been around long enough and there aren’t enough on the road to have a meaningful impact on the aftermarket sector.

Tesla remains the dominant player in the EV market, capturing nearly 60 per cent of BEV sales in 2023. However, for EVs to gain a significant share of new vehicle sales, other nameplates must attract more consumer interest — a shift that has yet to occur, Lang noted.

Internal combustion engine (ICE) vehicles still overwhelmingly dominate vehicle inventory, with ICE vehicles comprising 98.8 per cent of vehicles in operation (VIO) in 2023 in the U.S., down only 1 per cent from 2016. The characteristics of the aftermarket, where vehicles under four years old contribute minimally and older ICE vehicles generate disproportionate sales volumes, have kept EVs’ share of the light vehicle aftermarket below 1 per cent in 2023.

A vehicle typically does not generate substantial aftermarket volume until its fourth year on the road, with significant product use occurring in vehicles aged six to ten years.

“Consequently, it will take many years for EVs to impact the aftermarket significantly, even if their sales continue to rise—a prospect that is becoming uncertain as their 2024 sales growth slows,” Lang said.

“While EVs capture headlines and new vehicle market share, their journey to meaningful aftermarket influence remains a long road ahead.”