The automotive aftermarket for electric vehicles (EVs) and internal combustion engine (ICE) vehicles is undergoing a significant structural transformation. While the ICE aftermarket is gradually entering a mature, replacement-driven market characterized by slower growth and tighter margins, the EV aftermarket is moving into a high-growth stage with higher technical and service barriers.

The key changes are mainly reflected in the following four dimensions:

1. Structural Differentiation in Automotive Parts Demand

Internal Combustion Engine Vehicles: Declining New Demand and Intensifying Competition
As vehicle electrification continues to expand, demand for traditional ICE components such as engines, transmissions, spark plugs, exhaust systems and engine oil is gradually shifting from new vehicle demand to the maintenance and repair of the existing vehicle fleet. The market is increasingly characterized by high product similarity, lower margins and intense price competition, particularly for standardized and fast-moving wear-and-tear parts.

Electric Vehicles: Rapid Demand Growth and the Shift Toward Higher-Value Components
EVs eliminate or simplify many traditional mechanical components while creating new demand for high-value systems and components, including battery systems, electric motors, electronic control units, high-voltage wiring harnesses, thermal management systems, sensors and domain controllers. These products generally involve higher technical requirements, stricter validation processes and greater safety considerations, making them important new growth areas in the automotive aftermarket.

2. Transformation of Aftermarket Repair Models and Capabilities

Shift in Repair Focus
ICE vehicle maintenance is traditionally centered on mechanical repair and routine servicing, relying heavily on technician experience and general-purpose tools. EV servicing is increasingly focused on battery, motor and electronic system diagnostics, high-voltage safety and software-based fault diagnosis. This requires repair shops to invest in specialized diagnostic equipment, high-voltage service capabilities and technicians with combined mechanical, electrical and electronic expertise.

Upgraded Service Models
EV aftermarket services are gradually shifting from reactive repair toward more comprehensive and proactive service models. Vehicle owners increasingly expect an integrated process covering inspection, fault diagnosis, repair, parts supply and post-repair verification. This trend is driving the aftermarket toward more standardized, professional and integrated service networks.

3. Changes in Parts Supply Chains and Distribution Models

Restructuring of Supply Chain Requirements
EV manufacturers are placing greater emphasis on localized sourcing, synchronized product development and automotive-grade validation. This raises the entry barriers for traditional small and medium-sized automotive parts manufacturers. To remain competitive, suppliers may need to transition toward safety-critical and highly validated components, such as battery-pack structural components and high-voltage connectors, or integrate into the supply chains of leading EV manufacturers and Tier 1 suppliers.

Parts Distribution and the Circular Economy
The recycling, second-life utilization and remanufacturing of EV components, particularly traction batteries, are creating new opportunities across the aftermarket. This is encouraging the industry to develop integrated capabilities covering inspection, repair, remanufacturing, recycling and second-life applications. At the same time, digital platforms for parts cataloging, vehicle fitment, product matching and online customer acquisition are becoming increasingly important in modern automotive parts distribution.

4. Evolution of Market Structure and Competitive Dynamics

Market Segmentation and Dual-Track Development
The ICE aftermarket continues to benefit from a large installed vehicle base and the ongoing maintenance needs of an aging fleet, although overall growth is slowing. In contrast, the EV aftermarket is expanding rapidly as the EV parc continues to grow. Aftermarket demand is also evolving from basic maintenance and routine service toward more complex diagnostics, component repair and deeper vehicle-system maintenance. Overall, the market is developing along a dual-track pattern: ICE remains stable, while EV is growing faster.

Upgrading Competitive Factors
Competition in the automotive aftermarket is shifting beyond traditional price-based competition toward technology, product quality, validation capabilities, total lifecycle cost and comprehensive service capacity. Suppliers that fail to upgrade their technical capabilities may face increasing competitive pressure, while parts manufacturers, distributors and service providers with strong EV compatibility, quality systems and integrated aftermarket capabilities are better positioned to capture future market opportunities.