What’s Happening in the Battery Market? Veloris Examines the Latest Trends
As every technician can testify, the 12-volt battery remains a prominent component within the daily working life of a typical workshop, but with the increasing adoption of hybrid and electric vehicles (EVs), some question whether it will remain so.
In common with almost all aftermarket developments, the primary driver for change is technology, and the 12-volt battery follows this model, with the introduction of absorbent glass mat (AGM) and then enhanced flooded battery (EFB) batteries, to cater for the requirements of vehicles fitted with a start/stop system.
The sales data over the last decade substantiates the change that workshops experience daily, with the shift from the previous starter/lights/ignition (SLI) technology, which in 2016 was almost exclusively the replacement option, to today, when the split is, as near as can be measured, 50/50 between SLI and AGM/EFB batteries.
Although the rate of change in the early years was relatively slow, over the last five years it’s been much faster, which has prompted the fear that when these inherently longer lasting batteries become the dominant technology, sales will take a significant down turn, with profits following suit.
However, although the number of batteries that need to be replaced over the next decade may indeed drop, because AGM/EFB batteries are more expensive, the profit workshops enjoy from battery replacement is likely to be protected. The workshop profit will derive not only from a higher average battery price, but from the additional fitment and coding work required when replacing start stop batteries.
When it comes to the battery types that make up the top sellers, Veloris, Europe’s largest battery distributor, can share that from its VARTA sales data, the familiar 096 still takes the top spot. However, reflecting the technology change previously mentioned, it’s the AGM version that is the biggest seller, with the EFB variant in fourth and the SLI in fifth. In second and third places are the 115AGM and 019AGM respectively.
Another factor that is likely to influence the expected down turn in battery sales is the hybrid and EV market, which at first glance may look to exacerbate the trend, but on further analysis, could slow it down.
Although hybrids and EVs have tended to stay with the vehicle manufacturer (VM) dealer networks for service and repair, because the majority have been purchased by fleet providers to businesses, rather than to private buyers, many are now close to, or at the end of their contract period, so there will be a big increase in private owners, who historically favour independents.
The aftermarket has anticipated the arrival of new technologies into workshops, with many undertaking level 3 and 4 EV training to be able to work on high voltage systems.
As Veloris has previously highlighted, irrespective of whether they are hybrid or electric, each of these vehicles has a 12-volt battery and its data has revealed that for several reasons, these batteries typically do not last as long as the AGM/EFB batteries fitted to purely combustion engined vehicles.
Endorsing this position, some VMs now class 12-volt auxiliary batteries as a three year replacement item, although the facts support that many fail even before reaching that date. So, there are many positives to take away from a market that at first glance looks like it’s in decline.
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