Your €25 car part now costs €40. Here's what really changed (and it's not greed)

Last month, a German driver went to replace his ABS sensor – the same part and same brand he bought in 2022 for €25. The price? €40. A 60% jump in less than two years.

Most drivers blame retailers. "They're ripping us off," they say. But the data tells a different story. After analysing purchase patterns from over 1 million transactions at AUTODOC, Europe's online auto parts retailer, we found something unexpected: retailers' margins actually shrunk during this period. So where did the extra €15 go?

The answer isn't simple greed – it's a chain reaction across four continents, involving steel mills in Asia, container ships stuck in European ports, and energy bills that tripled overnight. Auto parts prices surged 15–30% across Europe in just three years, and the causes are far more complex than most people realise.

What's really eating your money and where the hidden costs hide

When you pay €40 for that ABS sensor, only €15–25 actually goes to making it. The rest? It's scattered across a complex web of global costs that most drivers never see.

When containers cost more than cars and nobody talks about it

The automotive aftermarket has been severely impacted by cascading disruptions in global supply chains. The COVID-19 pandemic initially triggered factory shutdowns and port closures, creating bottlenecks that persisted long after initial lockdowns ended. Geopolitical conflicts, particularly in Eastern Europe, further complicated logistics routes, forcing companies to find alternative shipping paths that are often longer and more expensive. Container shortages and port congestion have become chronic issues, with shipping costs quadrupling in some routes compared to pre-pandemic levels. These delays don't just add time; they add significant costs that manufacturers and retailers must absorb or pass on to customers.

Steel jumped 70% in two years. Your brake pads felt it first

The foundation of any auto part, whether it's brake pads, suspension components, or engine parts, relies on raw materials whose prices have skyrocketed. Steel prices increased by approximately 50–70% between 2020 and 2022, while aluminium saw similar spikes. The automotive industry competes with construction, technology, and other sectors for these materials, driving prices even higher during periods of high demand. Plastics and rubber, essential for seals, hoses, and interior components, have become more expensive due to oil price volatility and refining capacity constraints. Each percentage point increase in raw material costs translates directly to higher prices for finished parts.

Why European factories saw their electricity bills triple overnight

Energy-intensive manufacturing processes make auto parts particularly vulnerable to electricity and fuel price fluctuations. European manufacturers faced unprecedented energy costs in 2022–2023, with some facilities seeing electricity bills triple. Die-casting, metal stamping, plastic injection moulding, and heat treatment all require substantial energy inputs. When energy prices surge, manufacturers face a choice: absorb the costs and reduce profit margins or increase prices. Most have chosen the latter, contributing 5–10% to overall price increases. Transportation costs have similarly climbed as fuel prices remain elevated, adding another layer to the final retail price.

From factory floor to your garage and where the money goes

Rising production expenditures

Beyond raw materials and energy, manufacturers face rising labour costs, inflation, and stricter environmental regulations. Skilled labour shortages in manufacturing sectors have pushed wages higher, while general inflation affects everything from factory maintenance to office operations. New environmental standards require investments in cleaner technologies, filtration systems, and waste management – costs that must be recouped through product pricing. Quality control procedures have also become more rigorous, adding to production time and expense but ensuring better reliability.

Complexities in modern logistics networks

Getting a part from factory to consumer involves multiple steps, each adding cost. International shipping now involves complex customs procedures post-Brexit and other regulatory changes. Insurance rates have increased due to higher cargo values and shipping risks. Warehousing costs have risen with real estate prices and labour expenses. The shortage of truck drivers across Europe has created additional bottlenecks in last-mile delivery. Even seemingly minor factors like pallets, packaging materials, and fuel surcharges accumulate, with logistics now representing 15–20% of a part's final retail price.

The battle for the "Last Mile": Why delivery became a headache and how it's improving

Beyond the sticker price, consumers across the market have voiced increasing frustration with the delivery process itself. The post-pandemic era exposed severe vulnerabilities in courier networks: slow deliveries became common due to high demand and weather disruptions, while a lack of transparency regarding arrival times left many drivers in the dark. A frequent complaint has been the absence of accurate Estimated Delivery Dates (EDD), making it difficult for mechanics and car owners to plan repairs. Furthermore, incidents of lost parcels due to scanning errors, as well as mishandling by overworked courier services leading to damages, have plagued the industry. In some regions, a limited choice of delivery methods simply left consumers with no alternatives.

However, leading retailers like AUTODOC have actively restructured their operations to counter these logistics failures. Recognizing that a part is useless if it arrives late or broken, the company has implemented a strategy focused on decentralization and automation:

● Expanded Warehouse Network: By opening new, large-scale logistics hubs closer to key customer markets across Europe, AUTODOC has significantly reduced the physical distance a package must travel. This strategic move bypasses many cross-border bottlenecks that previously caused delays.

● Faster Dispatch Times: Heavy investment in warehouse automation has streamlined the fulfilment process. Industry analysis shows that for in-stock items, these upgraded systems allow for same-day dispatch, handing parcels over to couriers much faster than traditional manual processing.

● Enhanced Reliability: By enforcing stricter packaging standards and diversifying partnerships with top-tier courier services, the rate of shipping damages and lost parcels has been driven down.

These operational shifts suggest that while global logistics remain complex, major players are successfully insulating consumers from these issues, making the delivery of parts faster and more predictable than in previous years.

The €23 billion shift in how Europe buys car parts today

The automotive aftermarket is undergoing a digital transformation that's changing how consumers purchase parts. According to Statista forecasts, the European e-commerce automotive aftermarket is projected to grow from $23,053 million in 2022 to $58,530 million by 2028, more than doubling in value.

This remarkable growth reflects several trends: consumers increasingly prefer the convenience of online shopping, comparison tools help find competitive prices, and expanded inventories offer greater selection than traditional brick-and-mortar stores. This shift to digital platforms also creates opportunities for price transparency, though it hasn't reversed the overall upward price trend.

Breaking down your €40 and why production gets less than half

Understanding what comprises a part's final price reveals why costs have increased so dramatically. The table below shows how various factors contribute to what you pay at checkout:

What affects the price Share of final cost (%)

Production costs (raw materials, labour, electricity) 40–50%

Logistics (transportation, storage, customs) 15–20%

Marketing and branding (brand value, packaging) 10–15%

Retailer markup (profit, operational expenses) 10–25%

This breakdown shows that manufacturing represents less than half the final price. The remaining 50–60% covers getting the part to your doorstep and keeping retailers in business. When any of these elements becomes more expensive, whether raw materials, fuel for trucks, or warehouse rent, the cumulative effect can easily double prices compared to a few years ago. Retailers typically operate on modest margins (10–25%), meaning they have limited ability to absorb supplier price increases without passing them to customers.

How one ABS sensor jumped 60% in price over two years

Consider the experience of a German driver who needed to replace a failing ABS sensor on his 2015 Volkswagen Golf. In early 2022, a quality replacement sensor from a reputable brand cost approximately €25. By late 2023, the same sensor from the same manufacturer had risen to €40 – a 60% increase in less than two years. This wasn't price gouging; the manufacturer's costs for the electronic components, plastic housing, copper wiring, and logistics had all increased substantially. The driver faced a choice: pay the higher price for a reliable part or risk a cheaper alternative that might fail prematurely, potentially causing more expensive problems. This scenario plays out daily across Europe as consumers balance budgets against vehicle safety and reliability.

Conclusion

The rising cost of auto parts stems from interconnected global economic factors rather than arbitrary price increases by sellers. Supply chain disruptions, raw material shortages, energy crises, and increased operational costs throughout the production and distribution chain have created a perfect storm of price pressures. Each link in the chain, from steel mills to shipping companies to retail warehouses, faces higher expenses that ultimately reach the consumer.

However, despite these challenges, the automotive aftermarket continues to evolve and adapt. Major players like AUTODOC demonstrate that quality doesn't have to suffer alongside rising prices, with customer satisfaction data showing high marks for product accuracy, durability, and reliability. The explosive growth of e-commerce in this sector provides consumers with better tools to compare prices, read reviews, and make informed decisions. While no one welcomes higher prices, choosing established suppliers with transparent information and quality guarantees helps minimise risks and ensures that vehicle maintenance and repairs are done right the first time. As the market stabilises and supply chains recover, some pricing pressure may ease, but the era of ultra-cheap auto parts appears to be behind us. Smart consumers will focus on value, reliability, and total cost of ownership rather than simply chasing the lowest sticker price.