Trust and relationships are increasingly shaping decisions by vehicle owners in their choice of repairers, according to new research.
The Australian Automotive Aftermarket Association research has found both owners and fleet managers are increasingly opting for independent workshops to service and repair their vehicles over the dealer ship market.
The State of the Industry research conducted by the AAAA and Fifth Quadrant found a 10 per cent increase in market share for independent workshops servicing consumer vehicles over the past three years, now accounting for 60 per cent of all service and repair activities, a market now worth $10 billion per year
AAAA’s research also explored 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, it found 71 per cent of consumers trusting their local mechanic.
The aftermarket sector now commands 57 per cent of consumer vehicle revenue, marking a five percent increase since 2021.
For fleet vehicles the aftermarket holds a dominant 55 per cent market share, a 23 per cent since 2021. By contrast the dealership market decreased by 21 per cent over the same period.
AAAA CEO Stuart Charity says the research highlights the strength of the aftermarket and debunks the perception only serves older vehicles.
“We are very pleased to see that consumers and fleet managers are increasingly choosing independent workshops to service and repair their vehicles,” Charity says.
The overall aftermarket industry is lso growing the research finds.
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 last five years. This growth has also created more workshops offering employment and expanding workshop facilities to meet demand.
“With forecasts indicating a 20 percent 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,” Charity says.
“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.”