Dealerships, News

MORE motorists are turning to independent workshops to service and repair their vehicles, according to a report by the nation’s aftermarket industry.

The Australian Automotive Aftermarket Association (AAAA), in collaboration with researchers Fifth Quadrant (formerly ACA Research), said there has been a 10 per cent increase in market share for independent workshops over the past three years.

Quadrant said that each year, the automotive service and repair sector has an average expenditure of $10 billion, with 70 per cent attributed to consumer vehicles and 30 per cent to fleet vehicles.

The latest research said independent workshops now account for 60 per cent of all service and repair activities. The aftermarket sector now commands 57 per cent of consumer vehicle revenue, marking a 5 per cent increase during the same period.

The AAAA said that the shift to the aftermarket sector is even more pronounced with it now holding a dominant 55 per cent market share of fleet business, an increase of 23 per cent since 2021. 

This contrasts with a 21 per cent decrease in dealership market share over the same period, “debunking perceptions that the aftermarket only serves older vehicles,” the AAAA said.

AAAA CEO Stuart Charity said: “We are very pleased to see that consumers and fleet managers are increasingly choosing independent workshops to service and repair their vehicles.”

AAAA’s research included why the shift toward the aftermarket is occurring; with relationships, customer trust, convenience and competitive pricing all contributing factors in the research findings. 

In the trust category, independent workshops are showing 71 per cent of responding consumers trusting their local mechanic. 

The AAAA said that the service and repair shift to the aftermarket has coincided with a healthy growth in independent workshops numbers, expanding by 12 per cent to 27,700 over the past five years. 

This growth has also created more workshops offering employment, and expanding workshop facilities to meet demand. 

“With forecasts indicating a 20 per cent increase in the number of individual service and repairs undertaken each year by 2030 we are expecting continued growth in service and repair activities for our independent workshops for many years to come,” said Mr Charity.

Stuart Charity

“This growth, which we welcome and support, doesn’t come without challenges, and there is a desperate need for more qualified technicians and apprentices to meet this demand. 

“As the peak body for the automotive aftermarket, the AAAA will continue to address the skills shortage challenge on behalf of the industry, which is being tackled at government, industry and at a workshop level.  

“While we must be cognisant of the challenges facing us, this new research clearly shows the positive trajectory of the aftermarket industry and presents a promising outlook for the future,” Mr Charity said.

By Neil Dowling

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