AUTOMOTIVE REPAIR AND MAINTENANCE SERVICES MARKET ANALYSIS

Market Challenges And Opportunities

Global Automotive Repair and Maintenance Services Market - Impact of Coronavirus (Covid-19) Pandemic

Due to restrictions imposed by countries around the world, the auto industry has experienced a decline in sales and profits. Sales and after-sales services in the automotive industry have been hit hard by the pandemic, which has forced automakers to step up cost-cutting measures such as cutting operating and labor costs. The Covid-19 outbreak has had a negative impact on the growth of the global automotive repair and maintenance market. Due to the rapid spread of the virus, the government had to decide quickly on total lockdown, movement restrictions and social distancing. For example, most of the world's population stayed at home during the pandemic.

This will affect sales of commercial and passenger cars. Sales also fell due to changes in consumer behavior and reduced spending on non-essential items.

The economic impact of the COVID-19 epidemic on the automotive industry greatly affected subsidiaries such as the auto parts and aftermarket industries. Since the outbreak of COVID-19 began in early 2020, due to an increase in cases of COVID-19, authorities around the world have unexpectedly closed international and national borders.

Vehicle production has been suspended worldwide due to the pandemic, with automakers focusing on new product development and announcing strategic expansion and collaboration across the industry. All these factors hindered the growth of the market during the Covid-19 pandemic.

Global Automotive Repair and Maintenance Services Market- Drivers:

Significant increase in the average age of vehicles is expected to drive growth of the global automotive repair and maintenance services market during the forecast period

Advancements in material and technology used for automotive manufacturing has increased the average operational age of vehicles. According to Coherent Market Insights’ analysis, the number of vehicles with over 12 years of age is expected to increase by 15% over the next five years. Moreover, the reliability of the vehicles has been significantly increased in the recent past. As average operational age of a vehicle is increasing, significant number of repair and maintenance is expected to boost thereby driving the market growth.

Increasing concern over vehicle safety is expected to propel the global automotive repair and maintenance services market growth over the forecast period

Increasing number of road accidents caused due to breakdown of automotive components has resulted in increased awareness among general public regarding timely maintenance and repair of the vehicle. Moreover, the service life of automotive components is highly dependent on utilization, as components have threshold lifespan. Constantly changing driving conditions warrant timely repair, maintenance, and replacement automotive parts.

Global Automotive Repair and Maintenance Services Market- Opportunities:

Local shop owners can capitalize on untapped potential by providing a full range of services

Majority of shop owners do not offer a complete range of repair and maintenance services. However, they can follow a competitive strategy of specializing in any particular service or increase the number of services they are providing. Furthermore, local shop owners can collaborate with fleet operators and leasing firms to provide repair and maintenance services at discounted prices.

Authorized dealership owners can provide maintenance services at lucrative price

Majority of customers believe that authorized dealerships shops offer maintenance and repair services at significantly higher cost as compared to local shop owners. Thus, authorized shop owners need to offer services at lucrative prices to customers, in order to expand their consumer base. The authorized dealer shops are mostly preferred by the new vehicle owners as they enjoy warranty protection, thus authorized dealers are preferred for cars younger than 4 years. However, they need to focus on customer base with old cars by offering them service packages for lifetime with lower prices.