An industry report compiled by the Australian Automotive Aftermarket Association (AAAA) and Fifth Quadrant shows more and more consumers and fleets are using independent workshops to service and repair their vehicles.
It unveils service and repair trends in the national fleet, which comprises 19.7 million vehicles.
The sector receives more than $10 billion in annual revenue, of which 70% comes from the consumer and 30% from the fleet operator.
The research indicates a 10% increase in market share for independent workshops servicing consumer vehicles over the past three years. These workshops now account for 60% of all service and repair activities. The aftermarket sector now commands 57% of consumer vehicle revenue, marking a 5% increase during the same period.
The shift toward the aftermarket is more pronounced in the fleet space. The sector now holds a dominant 55% market share, a substantial 23% increase since 2021. This contrasts with a 21% decrease in dealership market share over the same period, debunking perceptions that the aftermarket 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,” AAAA chief executive Stuart Charity says.
AAAA’s research also explored why the shift toward the aftermarket is occurring, with relationships, customer trust, convenience, and competitive pricing contributing to the research findings. Independent workshops are striding ahead in the trust category, with 71% of consumers trusting their local mechanic.
The service and repair shift to the aftermarket has coincided with healthy growth in independent workshops, which have expanded by 12% to 27,700 over the last five years. This growth has also created more workshops offering employment and expanded workshop facilities to meet demand.
“With forecasts indicating a 20% increase in the number of individual services and repairs undertaken each year by 2030, we expect 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 by the 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,” he says.
