auswechseln
to replace
To replace a defective, used-up, or old part with a new or different one.
Der Mechaniker muss den platten Reifen auswechseln.
The mechanic has to replace the flat tire.

to replace / to substitute
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to replace
To replace a defective, used-up, or old part with a new or different one.
Der Mechaniker muss den platten Reifen auswechseln.
The mechanic has to replace the flat tire.

'Auswechseln' (to replace / to substitute) is a separable verb. In a main clause, the prefix 'aus-' comes at the end. In a subordinate clause, the verb stays together.
Ich wechsle die leere Batterie aus.
I replace the empty battery.
The verb is made up of the prefix 'aus-' and the verb 'wechseln' (to change). Here, the prefix 'aus-' emphasizes that something old or defective is taken out in order to be replaced with something new.
Könntest du bitte die Glühbirne im Flur auswechseln?
Could you please replace the light bulb in the hallway?
The context makes the meaning clear. Words like 'Spieler' (player), 'Trainer' (coach), or 'Mannschaft' (team) point to a sports context. Technical terms like 'Teil' (part), 'Motor' (engine), 'Filter' (filter), or 'Batterie' (battery) point to replacing components.
Der verletzte Spieler musste ausgewechselt werden.
The injured player had to be substituted.
In a sports context, you can introduce the new element with the preposition 'gegen' (for/with). Often, however, it is left out if it is not important.
Der Trainer wechselte den müden Verteidiger gegen einen frischen Spieler aus.
The coach substituted the tired defender with a fresh player.
to replace / reimburse
'ersetzen' and 'auswechseln' often mean that something or someone is replaced by something or someone else. 'ersetzen' is the more general word and works for people, things, and also more abstract situations. 'auswechseln' sounds more concrete and practical: you take one part out and put another one in, for example a battery or a broken part. In sports, 'auswechseln' is used when one player leaves the game and another comes on. Learners may confuse the words because both describe a change or replacement. When you are really taking something out and putting another part in, 'auswechseln' is usually more natural.

Vor der Reise hat Ali die Batterien in der Taschenlampe ausgewechselt.
Before the trip, Ali replaced the batteries in the flashlight.
Wenn Tom krank ist, ersetzt ihn seine Kollegin im Teammeeting.
If Tom is sick, his colleague replaces him in the team meeting.