SKF Vertevo operates in the automotive bearing market across two primary channels: Original Equipment (“OE”) and Vehicle Aftermarket (“VA”).
The two channels have different market dynamics: OE demand is cyclical, tied to vehicle production volumes and technological development, whereas VA demand is more stable, underpinned by an ageing and growing vehicle parc.
Electrification is reshaping demand patterns in both channels through its impact on bearing content and maintenance requirements.
Original Equipment
SKF Vertevo serves global and regional OEMs as well as Automotive Tier-1 suppliers across three end-user categories:
• Passenger Vehicles (“PVs”)
• Commercial Vehicles (“CVs”)
• Two-/three-wheelers
Because solutions are validated into each platform, switching supplier mid-platform is associated with cost, making nominated positions durable and generating predictable revenue, in an otherwise cyclical market.
Vehicle Aftermarket
SKF Vertevo serves a broad and diversified customer base of more than 10,000 distributors, workshops, garages, fleet operators, e-retailers, traditional retailers and OE service channels.
The company offers premium quality replacement parts as well as value-added services that support vehicle repair.
The VA business is resilient and cash-accretive, supported by a large, ageing and expanding global vehicle parc which generates recurring need for maintenance, repair and replacement solutions throughout the vehicle lifecycle.