Transforming automotive markets: an economic and technical analysis

This report delivers a comprehensive assessment of the European automotive sector’s transformation under the twin forces of digitalisation and electrification, the emergence of novel mobility models and the adoption of new distribution models. This transformation is being driven by regulatory interventions, changing consumer behaviour over environmental and privacy concerns, and technological advancements. The study draws on market data, surveys of repair and maintenance operators to analyse how recent changes and emerging trends may impact vertical relations and shape competition in the repair and maintenance market. Therefore, the report examines first vehicle‑fleet composition and trends, and the impact of the uptake of new powertrain technologies on repair and maintenance services. It then evaluates the existing regulatory framework and the growing significance of vehicle‑generated data, focusing on the implications of manufacturers’ restrictions on data access for independent repairers that could undermine competition and limit consumer choice. Finally, the report elaborates on the structure and size of the aftermarket, and the evolution of distribution arrangements, notably agency and mixed models. Overall, the convergence of electrification, connectivity, and new distribution paradigms is redefining competitive dynamics, value creation, and regulatory challenges in Europe’s automotive landscape, with profound implications for manufacturers, aftermarket operators, and policy makers.