Royal Bank of Canada's stake reduction nudges Dorman Products' strong growth outlook

German supplier Mahle prepares to launch OEM-quality high-voltage charging parts and diagnostic tools in 2025, addressing reliability issues and supporting the growing EV servicing sector and infrastructure expansion.German automotive supplier Mahle is gearing up to enter the global electric vehicle (EV) aftermarket with a pretty innovative lineup of high-voltage charging components—so, basically, they’re expanding beyond their traditional role in original equipment manufacturing (OEM). Starting in 2025, Mahle has plans to roll out input filters from October and onboard chargers (OBCs) by the end of that year. At first, these will be fitted into models from brands like Renault, Peugeot, Citroën, DS, and Opel. These components—they handle converting AC from the grid into DC for EV batteries and also keep systems safe from voltage spikes during charging—are directly from Mahle’s OEM operations, so they meet the highest quality standards, no doubt about that. Mahle really emphasizes how important high-voltage parts are becoming in the EV spare parts and servicing market. After all, these components tend to degrade over time due to factors like aging, vibration, moisture getting in, and overheating—as you might expect with electrical systems under constant stress. The company is predicting strong demand in the aftermarket, which makes sense, considering the rapid growth of EV fleets and the maintenance they’ll require. They also plan to introduce more power electronics and high-voltage parts throughout 2026, soon broadening their portfolio to cover a wider range of vehicle types. This step basically fills a crucial gap in the market, especially as EV adoption accelerates worldwide. Workshop networks will need OEM-quality parts to properly repair and maintain electric and plug-in hybrid vehicles. Dr. Armin Messerer, who’s the Head of Product Management and Purchasing at Mahle Lifecycle and Mobility, explains that this move will benefit both workshops and end users—since Mahle’s deep roots in OEM technology in drive systems, charging, and thermal management are now reflected comprehensively in services and spare parts. That said, Mahle’s aftermarket launch comes at a pretty relevant time, especially considering some recent reports about reliability issues with their onboard chargers installed in certain Stellantis vehicles. For instance, Leipzig-based rental operator Nextmove revealed that roughly one in three Opel Corsa-e vehicles in their fleet had experienced charger failures. These issues have led to costly replacements—sometimes over €2,000—and long downtimes, which is obviously a real headache. Independent repair specialists like EV Clinic have also documented recurring problems with these chargers. To me, all this highlights just how critical it is for the aftermarket to have robust, reliable components that meet OEM standards—not just average parts. Looking ahead, Mahle will showcase its expanded solutions for electric mobility at the upcoming IAA Mobility 2025 in Munich. Among the highlights will be their TechPRO® 2 diagnostic tool, now featuring artificial intelligence, and the E-HEALTH-Charge battery diagnostic system. This new system can diagnose high-voltage batteries rapidly—under 15 minutes—providing workshops with important info like battery health, error codes, and safety parameters without needing an extremely technical background beforehand. In addition, Mahle is advancing their presence in EV charging infrastructure. They’ve secured a series order for a high-performance cooling module designed for megawatt charging stations that serve electric commercial vehicles. This cooling module, which should go into production by late 2025, addresses the critical thermal management challenge faced by fast chargers—supporting rapid charging capacities up to 3.75 megawatts. Its modular design and flexible application mean it isn’t just for passenger cars but also for light commercial vehicles, maritime, and rail systems. Clearly, Mahle is committed to covering extensive parts of the EV ecosystem. All these initiatives really show Mahle’s strategic focus on blending their extensive expertise in electrification, thermal management, and power electronics to support the increasing demands of the EV aftermarket and charging infrastructure. As repair shops face mounting complexity and a higher volume of electric vehicle repairs, having access to OEM-level high-voltage parts and diagnostic tools will be absolutely crucial for ensuring reliable, quick service—so the growth of electric mobility can stay sustainable and efficient. References: - Paragraph 1 – [1], [2], [3], [4] - Paragraph 2 – [1], [2], [3], [4] - Paragraph 3 – [1], [3], [4] - Paragraph 4 – [1], [3] - Paragraph 5 – [1], [5] - Paragraph 6 – [6] - Paragraph 7 – [1], [3], [4], [6] (Note: Links refer to the sources provided in the original content.) Source: Noah Wire Services

The global automotive bearing market is set to reach over USD 38 billion by 2031, driven by EV adoption and technological innovations, despite disruptions from raw material volatility and counterfeit risks.The global automotive bearing market is showing strong growth prospects, driven primarily by rising adoption of electric vehicles (EVs), advances in lightweight materials, and expanding aftermarket opportunities. Industry reports indicate that the overall market is projected to reach over USD 38 billion by 2031, from a valuation of approximately USD 24.9 billion in 2023, expanding at a compound annual growth rate (CAGR) of about 6.12% throughout 2024–2031. Bearings are vital components in vehicles, crucial for drivetrain efficiency, safety, and durability in both internal combustion engine (ICE) and electric powertrains. The increasing popularity of EVs significantly influences the market dynamics. Bearings in EV drivetrains, motors, and wheel assemblies must withstand higher torque levels and thermal stresses, prompting OEMs to develop precision-engineered, lightweight solutions. While the overall market growth reflects a steady uptick, detailed forecasts specific to EV bearings suggest that this segment is expanding alongside EV adoption, though precise projections such as doubling or specific CAGR percentages are not explicitly provided in the original sources. Still, the trend underscores a growing emphasis on specialized bearing designs to meet EV requirements. Simultaneously, the industry is focusing on lighter, fuel-efficient vehicles. Materials like ceramics and advanced polymers are increasingly used in bearing manufacturing to reduce friction, improve component longevity, and help automakers comply with global emission standards. The Asia-Pacific region dominates the market, driven by robust vehicle production in countries such as China, Japan, South Korea, and India. Although the original article states that Asia-Pacific "dominates" the market, it does not specify the exact market share percentage; recent sources note that Asia-Pacific holds a significant portion of global vehicle production and associated bearing demand. The aftermarket segment is also growing rapidly, supported by rising vehicle ownership, longer vehicle lifespans, and a focus on preventive maintenance. Accessibility via expanding distribution channels and e-commerce platforms fuels this growth, particularly in emerging economies with expanding middle-class populations keen on vehicle upkeep. However, the market faces several challenges. Raw material price volatility remains a major concern due to reliance on steel, alloys, and rare earth elements. Fluctuations in prices are influenced by global demand, geopolitical tensions, and energy costs; for example, disruptions caused by the COVID-19 pandemic and geopolitical conflicts have led to supply chain disturbances. Precise claims, like China controlling a specific percentage of global rare earth production, are not directly supported in the original sources and thus should not be asserted without official data. Counterfeit bearings continue to threaten both safety and brand reputation, particularly in developing markets where regulatory enforcement might be weaker. The infiltration of low-quality fake products can impair vehicle performance and compromise safety standards, prompting industry efforts toward stronger anti-counterfeiting measures. Supply chain disruptions also pose risks. Recent logistics issues, such as increased freight costs and delays due to regional conflicts and shipping disruptions, underscore the need for manufacturers to develop resilient and flexible supply strategies. These issues are compounded by geopolitical tensions affecting raw material supplies, such as steel and other critical inputs, which influence manufacturing costs and production timelines. Industry players include leading firms such as JTEKT Corporation, SKF, Schaeffler AG, NSK Ltd, NTN Corporation, and TIMKEN. These companies focus heavily on innovation, including the development of energy-efficient bearings, regional customization, and expanded aftermarket distribution to maintain competitiveness. In summary, the automotive bearing market is on a growth trajectory driven by technological innovation, increased electric vehicle adoption, and an expanding aftermarket. Challenges like raw material price fluctuations, supply chain vulnerabilities, and counterfeit risks remain but are being addressed through strategic investments and technological advancements. The Asia-Pacific region continues to lead global growth, supported by large-scale vehicle production and cost advantages, while North America and Europe are emphasizing advances in technology and regulatory compliance. For industry stakeholders, success will depend on agility, innovation, and thorough understanding of regional market nuances. The market's evolution promises continued opportunity amidst ongoing transformation in the automotive landscape. Source: Noah Wire Services

Industry leaders at the 2025 Automechanika Johannesburg CEO Breakfast discussed strategies for resilience, tech innovation, and regional growth amid US trade tariffs and evolving market dynamics.The 2025 finale of the Automechanika Johannesburg CEO Breakfast, which took place at the famous Kyalami Grand Prix Circuit, pulled together an impressive lineup of senior leaders from the automotive world. The goal? To talk through some of the biggest challenges and opportunities facing South Africa’s auto sector — especially in light of the complicated global trade environment we’re currently navigating. As the Festival of Motoring was in full swing in the background, this event turned into a crucial space for strategic discussions about how the industry can transform, stay resilient, and innovate moving forward. Kicking off the session, Victor Radebe, who’s the Chief Director of the Programme Management Office for Gauteng’s Premier, emphasized how important it is to combine transformation efforts with resilience if the sector is to stay ahead in the future. Honestly, his remarks set a solid tone for the whole day, prompting a deep dive into several key themes shaping our industry right now. Sandile Ntseoane, heading up the Southern African Vehicle Rental and Leasing Association (SAVRALA), painted a picture of the rental and leasing sector as a crucial yet sometimes overlooked driver of mobility in South Africa. Post-pandemic, the industry has found its footing again, boosted by a rebound in tourism that’s led to increased fleet numbers. He also pointed out that customer preferences are changing — folks tend to prefer shorter lease periods these days, and there's a growing cautiousness around adopting electric vehicles. Interestingly enough, he noted how advances in telematics and artificial intelligence are having a real impact on fleet management, signaling some pretty major tech shifts in the sector. The conversation didn’t shy away from external hurdles either. Duane Newman, a partner at EY South Africa, provided a comprehensive analysis of how US trade tariffs — enacted under the previous American administration — are affecting us. The tariffs, including a 25% duty on automotive products and 50% on steel and aluminum, create some pretty tough obstacles for South African exporters. He explained that these measures could lead to losses of around $1.4 to $1.6 billion annually, and, more worryingly, might mean between 50,000 and 100,000 jobs could be at risk across the economy. To combat these challenges, he suggested that players in the industry should crank up regulatory monitoring, streamline their supply chains, adopt more strategic pricing strategies, and explore technology partnerships to stay competitive. On the home front, Brandon Cohen, who’s the National Chairperson of the National Automobile Dealers’ Association (NADA), shared some encouraging news about recent changes in South Africa’s automotive aftermarket policies. These new guidelines have effectively opened up the warranty service market for independent service providers, letting them compete with franchise dealerships without voiding warranties. That’s actually a pretty big breakthrough. Not only does it give consumers more choices, but it’s also had the unexpected benefit of boosting parts sales for the dealers themselves. It’s a rare example of government intervention that actually balances opening up the market with keeping industry stability intact. Looking at the bigger picture economy-wise, Nicky Weimar, the Group Chief Economist at Nedbank, offered a somewhat cautious but optimistic outlook. South Africa’s economy is on a slow recovery track, with GDP growth sitting near 1% — and the domestic vehicle sales for the year up by about 13.8%. Inflation has eased to 3.5%, and interest rate cuts of around 125 basis points are making it easier for folks to buy cars. Household debt levels, which used to be a concern, are now lower — below 9%, which helps. Still, Weimar pointed out some persistent problems, like struggling municipalities, high electricity costs, and logistics inefficiencies — all made worse by external pressures from US tariffs. Despite these hurdles, she remains optimistic about continued growth in domestic vehicle demand, driven by higher household incomes and better financing options. Finally, Michael Dehn, the Managing Director of Messe Frankfurt South Africa, wrapped things up by talking about the demographics of the industry and how they’re changing. The audience at the Festival of Motoring is getting noticeably younger — mostly under 40 now — and the gender balance is shifting too, moving toward parity from a previously mostly male dominance of about 70-30. Dehn said these shifts reflect the broader, more collaborative spirit of South Africa’s automotive industry, highlighting how it’s adaptable and ready to meet new challenges together. Beyond just looking inward, industry leaders are also thinking regionally and globally. There’s a strong focus on using the African Continental Free Trade Area (AfCFTA) as a strategic tool—to try and offset some of the negative impacts of US tariffs, and to expand market access across the region. This trade zone offers a potential market worth around $3.4 trillion, with lots of growth prospects, aligning with broader efforts to deepen regional integration. Alongside AfCFTA, agreements like the African Growth and Opportunity Act (AGOA) and trade relationships within BRICS are also on the radar as ways to open up new markets and form partnerships. Another key theme is compliance and technology. Presentations from the National Regulator for Compulsory Specifications (NRCS) underscored just how important it is for the industry to meet international safety and environmental standards—especially with the rapid pace of technological change, like electric vehicles and autonomous driving systems on the rise. Adhering to these regulations isn’t just about safety; it’s essential for maintaining access to markets and staying competitive. Looking ahead, the Automechanika Johannesburg CEO Breakfast — and the bigger trade fair it’s part of, sponsored by major players like Nedbank, the Automotive Industry Development Centre (AIDC), and SKF — continue to serve as valuable platforms for industry learning, strategy sharing, and growth. These gatherings aren’t just about tackling today’s challenges; they’re about paving the way for innovation, collaboration, and sustainable development in South Africa’s automotive aftermarket and manufacturing sectors. Source: Noah Wire Services