The amount of media attention paid to EV’s, gives the impression that the automotive aftermarket is on the verge of a revolution. Of course the reality is very different. Serious question marks still hang over EV technology and even if ultra ambitious targets can be reached, the combustion engine will remain on our roads for decades.

However, with technology moving away from traditional mechanical engines, one group in the aftermarket that must be concerned are oil suppliers. Electric cars do not require traditional engine oil after all, but despite this, one of the leading global players in the aftermarket oil business, LIQUI MOLY, see its future as very bright. 

Managing Director of the German oil, additives and car care specialist is Günter Hiermaier and he believes the company is very well positioned for the mobility transformation. He makes the point about the many millions of combustion-engine cars that are on the road now.  “Even if no car was produced with a combustion engine from today, it would take well over 15 years for the last ones to disappear. Our focus is much more on the aftermarket than on the OE business and this change will only happen even more gradually in the aftermarket.”

Indeed Günter’s argument is very sound, especially when it comes to Ireland. New pure electric car sales are currently running at 14.6% of the market, with ICE still dominating. 

Analysis carried out by Autobiz earlier this year also shows that even by 2030, pure EV’s will only account for 11% of cars being worked on by independent garages, while the internal combustion engine, in aftermarket terms, will be as big in 2030 as it was in 2021.

Serious question marks remain about the national grids ability to support the required nationwide charging network, while hybrid would appear to be a more practical option in many rural areas. 
Günter makes the point, “I would also be cautious about writing an obituary for the internal combustion engine right now. It will be exciting to see how electro fuels develop.  Synthetic fuels produced in a climate-neutral manner, can still provide the combustion engine with a long service life.”

Günter also says, “Modern motor oils are becoming increasingly demanding in production, so that many smaller oil manufacturers in particular cannot keep up with this change and will disappear from the market. At the same time, the more specialise nature of motor oils will continue to create new areas of opportunity of high value to garages.”

The fact that in more recent times LIQUI MOLY has become more of a chemical solutions provider for vehicles and not just an engine oil supplier is also important. Thus, for example, it has developed products that can solve low speed pre-ignition issues and can help keep diesel particulate filters clean. Additives of all kinds now form a key part of the product portfolio, while it is also now successful with vehicle specific coolants, greases and pastes, service products such as brake cleaner, car care, underbody sealant, materials for windscreen and upholstery repair and much more. 

Even when it comes to pure EV vehicles, Günter says there will be plenty of fluid opportunities for the aftermarket. For example, recently LIQUI MOLY introduced a transmission fluid for Tesla models as well as a fuel cell coolant. EVs make more extensive use of air-con, so need fluids such as PAG oils, while specialist brake fluids will also have a major role to play. Even though motors do some of the stopping work on EVs, the weight and acceleration of these models mean that brake temperature can rise rapidly. They thus require a low viscosity anti-conductive formulation that can operate in extreme heat, while also protecting against brake system corrosion. 

As Günter says there will be many more years where aftermarket oil will be in huge demand, perhaps reaching record values as cars stay on the road for longer and the specialist nature of oils means premium pricing. There will also be growing opportunities outside of engines oils to boost business such as A/C servicing and additives. Also, even if combustion engine start to disappear, workshops can adapt to the numerous fluid replacement and up-sell opportunities that alternative drive technology can offer.