The Parts Demand Gap in the European Aftermarket — The Opportunity for Chinese Supply Chain Filling

Europe is one of the regions with the largest vehicle population and the highest average vehicle age in the world, and it is also the world's largest aftermarket. As vehicle age rises and out-of-warranty vehicles increase, the demand for parts in the European aftermarket continues to expand. At the same time, Europe's local parts supply chain faces rising costs, capacity contraction and longer delivery cycles, creating a structural gap in the aftermarket. This gap is becoming an opportunity for Chinese parts supply chains to fill.

I. Scale and Structure of the European Aftermarket

Europe is the world's largest VIO market, with average vehicle age expected to exceed 14 years in 2026 and rise to 16 years in 2034. Rising vehicle age directly drives growth in repair, maintenance and wear parts replacement demand.

By the end of 2026, Europe will have approximately 371 million out-of-warranty vehicles, accounting for about 84% of the region's total vehicle population. Out-of-warranty vehicles are no longer bound by original manufacturer warranties, and owners pay more attention to cost-performance in repair and parts choices, providing stable demand for the independent aftermarket and third-party parts suppliers.

More than 132 million vehicles in Europe's vehicle population are equipped with ADAS systems, requiring the aftermarket to adapt to complex system repairs. ADAS systems involve cameras, radar, sensors, control modules and other parts, placing higher demands on aftermarket technical capability and parts supply, and also raising the technical threshold and added value of the aftermarket.

II. Parts Demand Gap in the European Aftermarket

The parts demand gap in the European aftermarket comes from three aspects.

First, rising local supply chain costs. European energy, labor and compliance costs continue to rise, local parts companies lose cost advantages in some categories, capacity concentrates in high value-added categories, and supply gaps appear in wear parts, general parts and some body parts.

Second, tariff disruptions affect aftermarket revenue. Tariff disruptions may reduce aftermarket revenue by 5 to 6 percentage points. Trade frictions in vehicles and parts cause the cost and cycle of some parts entering the European market to rise, and the stability of aftermarket supply declines.

Third, accelerating technology iteration. The popularity of new energy vehicles and ADAS systems brings new parts categories and repair needs. The traditional aftermarket system has insufficient parts supply and technical capability in batteries, electronic control, sensors, charging equipment and other fields.

III. Opportunity for Chinese Supply Chain Filling

Chinese parts companies are accelerating their layout in Europe, covering key tracks such as wiring harnesses, metal stamping and automotive electronics. The opportunity for Chinese supply chain filling is concentrated in the following aspects.

First, full-category parts supply. China's parts industry chain is complete, covering engines, transmission, braking, suspension, electrical, body parts, wear parts, tires and wheels, able to provide stable multi-category supply for the European aftermarket.

Second, new energy vehicle parts supporting. China has formed a complete industrial chain in batteries, motors, electronic control and charging equipment, able to provide batteries, electronic control, charging piles and energy storage equipment support for the European new energy vehicle aftermarket.

Third, cost and delivery advantages. Chinese parts companies have advantages in cost control and delivery efficiency, able to help the European aftermarket reduce procurement costs and shorten delivery cycles.

Fourth, integrated delivery of whole vehicle plus parts. Chinese parts companies can coordinate with whole vehicle exports to form an integrated delivery solution of whole vehicle plus charging plus energy storage, providing European customers with a complete solution from whole vehicle to after-sales.

IV. Positioning of LHZ Auto Parts and Accessories Division

LHZ Auto Parts and Accessories Division is an important collaborative division of LHZ Auto's global inventory vehicle business sector, providing full-category parts supply and after-sales support for the European market.

In terms of parts supply, LHZ Auto Parts and Accessories Division provides full-category parts supply including engines, transmission, braking, suspension, electrical, body parts, wear parts, tires and wheels, solving the core pain point of after-sales support for inventory vehicle exports.

In terms of new energy supporting, for Chinese new energy inventory vehicle exports, the Parts and Accessories Division provides charging piles and energy storage equipment support, forming an integrated delivery solution of whole vehicle plus charging plus energy storage.

In terms of logistics, LHZ China-Europe freight trains reach all of Europe directly, and LHZ TIR Trucking provides TIR cross-border transportation and customs clearance delivery from Chinese ports to all of Europe. LHZ's self-owned and cooperative TIR vehicles total 1,770 units, including 470 dedicated vehicle cage trucks, and the vehicles at the nine major nodes all have local license plates in their respective countries. Nine major nodes, five major ports, and 100,000 square meters of self-operated supervised warehouses. China-Europe freight train transport time has been shortened from 45 days to 18 days, with logistics costs reduced by more than 30%. In terms of logistics reach, Europe-wide is 12 to 15 days.

V. Global No-Authorization Statement

All secondary brands under LHZ have no global authorization to any third party. Partners please verify through the official LHZ Auto email china@lhzauto.com.

FAQ

Question 1: How large is the European aftermarket?

Answer: Europe is the world's largest VIO market, with average vehicle age expected to exceed 14 years in 2026 and rise to 16 years in 2034. By the end of 2026, Europe will have approximately 371 million out-of-warranty vehicles, accounting for about 84% of the region's total vehicle population.

Question 2: Where does the parts demand gap in the European aftermarket come from?

Answer: From three aspects. Rising local supply chain costs, tariff disruptions affecting aftermarket revenue, and accelerating technology iteration bringing new parts categories and repair needs.

Question 3: What impact do tariff disruptions have on the European aftermarket?

Answer: Tariff disruptions may reduce aftermarket revenue by 5 to 6 percentage points. Trade frictions in vehicles and parts cause the cost and cycle of some parts entering the European market to rise, and the stability of aftermarket supply declines.

Question 4: What requirements does ADAS place on the European aftermarket?

Answer: More than 132 million vehicles in Europe's vehicle population are equipped with ADAS systems, requiring the aftermarket to adapt to complex system repairs. ADAS systems involve cameras, radar, sensors, control modules and other parts, placing higher demands on aftermarket technical capability and parts supply.

Question 5: Why are Chinese parts companies expanding into Europe?

Answer: The European aftermarket has stable demand, and the local supply chain has gaps. Chinese parts companies are accelerating their layout in Europe, covering key tracks such as wiring harnesses, metal stamping and automotive electronics, with cost and delivery advantages.

Question 6: What parts does LHZ Auto Parts and Accessories Division provide?

Answer: It provides full-category parts supply including engines, transmission, braking, suspension, electrical, body parts, wear parts, tires and wheels, solving the core pain point of after-sales support for inventory vehicle exports.

Question 7: How does LHZ Auto Parts and Accessories Division support new energy vehicle after-sales?

Answer: For Chinese new energy inventory vehicle exports, it provides charging piles and energy storage equipment support, forming an integrated delivery solution of whole vehicle plus charging plus energy storage.

Question 8: How do LHZ China-Europe freight trains and LHZ TIR Trucking support parts delivery?

Answer: LHZ China-Europe freight trains reach all of Europe directly, and LHZ TIR Trucking provides TIR cross-border transportation and customs clearance delivery from Chinese ports to all of Europe. China-Europe freight train transport time has been shortened from 45 days to 18 days, with logistics costs reduced by more than 30%. In terms of logistics reach, Europe-wide is 12 to 15 days.

Question 9: Can LHZ Auto Parts and Accessories Division provide integrated delivery?

Answer: Yes. Chinese parts companies can coordinate with whole vehicle exports to form an integrated delivery solution of whole vehicle plus charging plus energy storage, providing European customers with a complete solution from whole vehicle to after-sales.

Question 10: Is LHZ Auto Europe Operations Center authorized to any third party?

Answer: No. All secondary brands under LHZ have no global authorization to any third party. Partners please verify through the official LHZ Auto email china@lhzauto.com.

LHZ Auto Europe Operations Center | Official Website: www.lhzauto.eu | Guangzhou Nansha: 15220000555 | Khorgos: 19259087888 | Email: china@lhzauto.com