The Italian automotive aftermarket is at a crossroads, influenced by economic shifts, technological advancements and changing demographics. In a recent episode of The Hedgehog and the Fox podcast, we had the pleasure of discussing these dynamics with GiPA Italia, represented by Rosaria Amodio and Romain Gougeon.

Key Trends Impacting the Aftermarket

Contrary to popular belief, the car remains a central element in Italian life. While discussions around mobility alternatives suggest a decline in car ownership, the data tells a different story.

In Italy, geography plays a significant role in car dependency. Whether in northern, central, or southern regions, or in large cities versus small towns, car ownership remains essential for most households. Despite economic difficulties and changing regulations, the demand for vehicle maintenance and repairs is stronger than ever.

One of the most pressing challenges is Italy’s aging population. ISTAT projections for 2040 paint an alarming picture, with the number of young people continuing to decrease.

This trend directly affects the automotive sector, particularly the aftermarket. The decline in the 18–24 age group has led to a sharp reduction in new driver’s licenses, not because young people reject cars, but because there are simply fewer young people overall.

The high cost of new vehicles, coupled with a shortage of used cars, is pushing Italians to keep their vehicles longer and invest in more extensive repairs.

Repairs that were once postponed or left to the next owner—such as shock absorbers, water pumps, alternators, and bodywork—are now being undertaken more frequently. This is driving higher demand for aftermarket services, especially as vehicles become older and require more maintenance.

While hybrid and mild-hybrid vehicles are becoming more common, 98% of Italy’s car car parc is still powered by internal combustion engines.

The transition to electric and alternative powertrains presents new challenges for aftermarket businesses, which must prepare for certifications, specialized equipment, and workforce training. However, the slow adoption rate of electric vehicles (EVs) in Italy suggests that businesses still have time to adapt without losing their competitive edge.

Italy’s aging car parc is not just a technical issue—it’s deeply tied to economics and demographics.

Over the past two decades, Italy has experienced three major economic crises:

• The 2008 financial crisis (Lehman Brothers crash), which had a relatively mild impact.
• The European debt crisis, which severely affected economic stability.
• The COVID-19 pandemic, which compounded financial pressures.

As a result, Italy’s GDP per capita has not fully recovered from the first crisis, and economic stagnation continues to impact purchasing power.

With new cars costing more than ever, many Italians prefer to invest €1,500–€2,000 in repairing their existing cars rather than spending €35,000 to buy a new vehicle. Additionally, the used car market remains constrained because fewer people are selling their vehicles, leading to a scarcity of affordable second-hand options.

Challenges for the automotive industry

The Italian aftermarket industry faces four major challenges:

1. Stricter Regulations and the Green Transition

The automotive sector is under intense pressure to meet emission reduction targets.

• The ban on internal combustion engines, originally planned for 2035, has already been postponed.
• New ADAS (Advanced Driver Assistance Systems) regulations have changed technical requirements for new vehicles.
• Emissions penalties are placing a heavy financial burden on manufacturers and dealers.

In Italy, missing vehicle registration targets for just one month could result in an economic loss of over €300 million.

2. Economic Uncertainty and Market Instability

New vehicle costs are constantly rising, while government incentives often fail to drive substantial car parc renewal.

This makes long-term business planning difficult, as 2024 has already been challenging, and 2025 does not promise greater stability. Political uncertainty, fluctuating regulations, and technological instability make it hard for companies to plan ahead.

3. The transformation of vehicle repair and service

Modern vehicles are becoming increasingly complex, requiring advanced technical skills and specialized equipment.

To stay competitive, repair shops must shift toward a multi-service model, positioning themselves as one-stop shops that can handle all vehicle maintenance needs.

While service visits are declining, repair revenues are increasing due to the aging vehicle car parc and rising service costs.

4. Demographic shifts and workforce shortages

With fewer young people entering the workforce, the aftermarket industry faces a shortage of mechanics and skilled workers.

This raises key questions:

• How will mobility trends change in the next decade?
• How can businesses attract and retain skilled technicians?

To navigate these challenges, industry players must focus on three key areas:

1. Strength in Numbers: The Power of Networking

For small, independent repair shops, survival depends on collaboration.

Joining larger networks can provide:

• Training and certifications to stay up to date with new technologies.
• Marketing and communication support to attract customers.
• Access to technical resources that individual shops might struggle to obtain.

2. Innovation and Sustainability

The transition to greener mobility is no longer optional—it’s a necessity.

However, sustainability must be approached holistically, balancing environmental, economic and social factors. Businesses need to invest in new technology while ensuring that consumers can afford and adopt these changes.

3. Customer-Centric Business Models

Consumers today value transparency, convenience, and reliability more than ever.

Offering clear communication, efficient service, and building trust with customers are no longer “nice-to-haves”—they are essential for long-term success.

Looking Ahead: Opportunities in Change

Despite the many challenges facing the Italian automotive aftermarket, change always presents opportunities.

• Workshops that embrace new technologies will thrive.
• Businesses that invest in training and networking will remain competitive.
• Companies that prioritize customer relationships will build long-term loyalty.

The road ahead is uncertain, but those who adapt will lead the future of Italy’s aftermarket industry.

Join Us at AutoPromotec 2025

GiPA Italia will be at AutoPromotec in Bologna on May 21, 2025, hosting an exclusive event to recognize industry leaders in innovation, sustainability, and customer service.

We look forward to seeing you there!