AUTOMOTIVE COLLISION REPAIR MARKET ANALYSIS

Market Concentration and Competitive Landscape

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Increased Vehicle Ownership

The rising affluence of populations across the world has translated to more households being able to own personal vehicles. In established automobile markets, ownership levels were already high but emerging economies are witnessing phenomenal growth in private vehicle penetration over the last decade. Countries like China, India, Brazil, and numerous Southeast Asian nations have seen 2-4x jumps in per capita car ownership. While in the initial years, these new owners focused more on purchase and maintenance, as vehicles age the need for collision repairs becomes more prominent. Even minor repairs are more regularly undertaken compared to past times. The sheer scale of new vehicles on the roads ensures there will be plenty of repair opportunities to come. With personal mobility and vehicles being viewed as a symbol of status still on the rise in developing markets, the customer base supporting collision repair needs will keep expanding rapidly into the foreseeable future. Sustained economic development world over alongside urbanization trends and easing financing options all contribute to make increased ownership a reliable driver for the collision industry.

For instance, in July 2022, China witnessed a significant surge in auto sales, with numbers reaching 2.42 million units, marking a notable 29.7% increase compared to the previous year, according to data from the China Association of Automobile Manufacturers (CAAM). Notably, sales of new energy vehicles, encompassing pure electric vehicles, plug-in hybrids, and hydrogen fuel-cell vehicles, saw a remarkable 120% rise compared to the previous year.