Platform Business in the automotive aftermarket – A Review of 2024

The year 2024 marked a turning point for the automotive aftermarket. Digitalization and platform businesses became more prominent as customers and auto repair shops increasingly relied on connected technologies. According to a
McKinsey study, 58% of drivers already follow recommendations from their connected vehicles to find auto repair shops and schedule appointments. The digitalization of vehicles has long since begun, and connected systems are fundamentally reshaping access to services. Platform solutions are a key lever to handle this complexity.

In an exclusive interview, Mesut Cengiz, CEO of N4, and Patrick Lang, Head of Automotive Products at N4, share insights into last year’s trends, the significance of platform businesses, and the challenges that need to be addressed. This conversation kicks off our blog series on key developments in software solutions for the automotive aftermarket.

Platforms dominate the automotive aftermarket in 2024

The year 2024 was characterized by a clear trend toward platform businesses in the automotive aftermarket. There was an increased demand to integrate as many suppliers and industries as possible into a single solution to provide a broad portfolio of products and services.

SUMMARY: WHAT IS A PLATFORM?

A platform is a digital infrastructure that connects different stakeholders and enables the exchange of products, services, or information. It serves as an intermediary and creates added value for all parties involved by integrating data and processes.

What key requirements for platform solutions emerged last year?

Mesut Cengiz, ceo of N4

Mesut: Last year, platform business became a crucial component for many auto repair shops. The focus was particularly on integrating Original Equipment Manufacturers (OEMs) into the aftermarket. Platforms not only consolidate information about procuring a spare part but also about its installation. That’s why we offer a one-stop-shop solution wheretires, rims, other auto parts, and services are integrated into the customer’s own inventory management system without additional logins or disruptions. Buyers experience everything they are accustomed to from modern B2C shopping platforms, combined with a solution that integrates aftermarket and OEM. Through seamless integration, an information loop is created between the platform and the inventory management system.

Challenges in implementing electronic data interchange (EDI) projects

What B2B customer requirements shaped project business in 2024?

Patrick Lang, head of automotive products

Patrick: In 2024, expectations in the B2B sector changed significantly: customers demanded a fast and seamless experience similar to the B2C sector. Real-time information on delivery times, prices, and stock levels became central requirements in the ordering process. This development led to increased demand for EDI projects in addition to e-commerce projects, which we implement with our middleware, N4CONNECT. N4CONNECT simplifies the ERP integration process, enables smooth communication between inventory systems and webshops, and provides live queries as well as the transmission of relevant order information. Scalable and efficient, the middleware connects thousands of suppliers and meets the growing demand for real-time data in the automotive aftermarket.

What challenges do EDI projects pose that are often underestimated?

Mesut: A platform that offers everything is new for both customers and auto repair shops in the automotive aftermarket. These target groups must be considered when introducing new systems. Customers are not used to accessing specific information on demand or using a platform that combines maintenance with recall campaigns. It’s important to build customer trust in the logic and processes of the system. On the other side, auto repair shops need to use this information and pass it on to customers. As a software provider, we face the challenge of harmonizing the required information (e.g., mapping the original part to the accessory part, repair instructions for a portfolio of new vehicle models and brands) from up to 20 sources into the platform without making the complexity apparent to the user. The keyword here is complexity reduction with N4CONNECT: this tool processes database information, connects the offerings of manufacturers and wholesalers, and presents it to the user in a standardized form.

How platform solutions will shape the automotive aftermarket in 2025

How can platform solutions support auto repair shops?

Mesut: For example, auto repair shops often miss alerting customers to a manufacturer recall before performing maintenance. If a recall is active, the platform detects it and notifies the user before maintenance begins. Another example: newer electric vehicles often require
different repair steps or documentation.The platform guides users with visual and textual inputon how to perform a repair. Sometimes, a repair, such as for accident damage, requires parts from wholesalers as well as original parts from manufacturers. The platform must integrate damage calculation providers, select the appropriate parts and labor values, and map this within a platform economy into a cart, which can be transferred to the auto repair shop’s inventory management.

How does a platform solution reduce complexity in daily auto repair shop operations?

Patrick: The platform’s most important task is to reduce the complexity of a growing product range with numerous variants for users.
This complexity also reflects in repairs: the more interconnected electronic components or assistance systems are, the more extensive and intricate the repair and calibration of existing parts becomes. A platform must not only display which wholesaler sells the right parts but also automatically indicate if specialized tools are needed and who offers them for purchase or rental. Such a platform gives auto repair shops the literal tools to perform repairs optimally.

INA ROGALEV
junior marketing manager

MESUT CENGIZ
ceo of n4

PATRICK LANG
head of automotive products

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