MAHLE Aftermarket looks to growth in an increasingly electrified future service and repair business

Following a decline in sales of 5.5 percent in a pandemic-challenged 2020, MAHLE Aftermarket plans to return to growth this year, thanks in part to expansions in its Service Solutions division, the company reported in its July 28 virtual press conference in Stuttgart.

Olaf Henning, corporate executive vice president and general manager of MAHLE Aftermarket, said the company's focus is on four strategic areas: the digitalization of services, information offerings, and processes, the development of new business areas for repair shops, and expansion of the categories of thermal management and workshop equipment.

He said the company's expertise as an original equipment manufacturer enables it to anticipate market and technology trends at an early stage, which will allow the independent repair shop to compete with dealerships.

"Competition between contracted and independent workshops is increasing," he said. "The reason for this is the rising proportion of hybrid and electric vehicles, which in the early years are still more heavily tied to contracted workshops than conventional vehicles. MAHLE’s future focus has also shifted. At its core is the triad comprising the sustainable powertrain consisting of an electric motor, the fuel cell, and the intelligent, non-fossil-fuel-operated combustion engine. The results from research and development also flow directly into the creation of solutions for the aftermarket of tomorrow.

"With our transformation to sustainable mobility, we can show independent workshops how to safeguard their maintenance business in the future. Our OE expertise and close ties to vehicle manufacturers enable us to anticipate market and technology trends at an early stage and to tap into a growing portfolio in the field of new mobility."

Over the next three years, MAHLE Aftermarket is investing about EUR 16 million in automation and digitalization. In addition to innovations in the areas of calibration, transmission oil management, and air conditioning service, Henning said, the group will increase its focus on aftermarket solutions for alternate drives, including battery and fuel cell maintenance.

"We're using our OE expertise to conduct fundamental research on battery diagnostics via charging plugs and develop service equipment for fuel cell vehicles," said Alexander Kutsch of the Service Solutions division. "We’re integrating new features into our digital ADAS devices to provide workshops with new business in the calibration of driver assistance systems. In this process, the preparation takes the most time: finding the right calibration panel, aligning the vehicle, and manually transferring the data to the diagnostic tool. Our TechPRO Digital ADAS unit has already speeded up the first two steps dramatically compared with our competitors—thanks to the digital calibration panels projected onto the screen and the vehicle alignment supported by our laser-based technology. This alone reduces the time spent on a job by up to 80 percent."

The division is using labor-saving features, such as the ability for a technician to monitor the automatic transmission fluid flushing unit via an app.

"This means that technicians can take their smartphones or tablets with them into the vehicle, keep an eye on the status of the unit at all times, and receive instructions directly," Kutsch said. "That’s a huge advantage if, for example, they need to shift through individual gears during the flushing process. Another benefit of the new range is its connectivity: if a problem develops, a MAHLE technician can connect to the unit via Remote Service and provide technical assistance."

Andreas Beihofer, who is over the electronics and thermal management business areas, said the company's recent acquisition of Spanish electronics specialist Nagares has allowed for "a stable share in the aftermarket business with control modules."

That will be expanded to four areas, he said: electric motor peripherals, motor controllers, traction systems, and energy management in hybrid and electric vehicles.

"In the latter, we are benefiting massively from the development work that MAHLE is carrying out for vehicle manufacturers in the OE sector. MAHLE’s onboard chargers are an excellent example of this."

MAHLE's onboard chargers, he explained, adjust the charging parameters during AC charging to match the requirements of the battery management system, speeding up the charging process while also saving power.

"However, the direct current required to charge the traction battery can usually only be found at DC charging stations on freeways. In contrast, urban charging stations or local household connections supply alternating current, which the onboard charger generates by means of rectifying and conversion."

Thermal management, which already represents about 20 percent of MAHLE Aftermarket's sales, was bolstered by its 2020 acquisition of a majority share in Behr Hella Service, he said, which has allowed customers to obtain all major thermal management parts from a single source. Digitalization has improved products and services in this segment, too, he said.

"Aimed at both beginners and professionals, MAHLE’s TechTool offers information at the OEM level in 14 languages and gives detailed insights into automotive air conditioning and engine cooling in passenger cars and commercial vehicles."

The intuitive menu design, he said, makes navigating the MAHLE TechTool straightforward and quick.

"After selecting the vehicle category, the user can choose between systems or component level. An explanation of the selected element is then given along with potential defects, their causes, and solutions. This information is complemented by video animations showing how the individual components work. With our online filling quantity tool, we’re also adding to our thermal management range. The tool provides information in seven languages on the correct refrigerant and oil quantities for passenger cars and commercial vehicles, and it works on PC, tablet, and smartphone, so it can be accessed at any time. The favorites function allows you to flag your most popular vehicle types and quickly call them up again when needed."

Henning said he views digitalization as "a megatrend that also offers great market potential for workshops. That’s why we are consistently pursuing a digitalization strategy across all areas."

And as the industry increasingly shifts away from the internal combustion engine to what he called "e-mobility," MAHLE Aftermarket's expertise in OE systems will allow it to offer solutions to independent shops that "cushion the decline in the traditional maintenance business."

"This concerns access to vehicle data, the development of new workshop equipment, a growing portfolio in the field of electronics, and many other activities."