Market Trends of Automotive Repair And Maintenance Service Industry
The Passengers Cars Segment is Expected to witness Surging Growth Between 2024 and 2029
The passenger cars segment of the market is driven by consumers' increasing preference to avail of private transportation mediums, increasing demand for shared mobility, and the increasing age of cars. The growing passenger car sales worldwide foster the market for automotive repair and maintenance services, as vehicle owners tend to ensure the efficient operation of their cars and compliance with recent government standards. Consequently, vehicle owners visit service centers every 3-6 months for routine service checking, which assists the market growth.
- According to the European Automobile Manufacturers Association (ACEA), Germany, the United Kingdom, and France were the leading nations across Europe with the highest passenger car registrations in 2023.
- The number of new passenger car registrations in Germany reached 2.8 million units in 2023, followed by the United Kingdom, with new car registrations reaching 1.6 million units, and France, with new car registrations reaching 1.5 million units during the same period.
Furthermore, shared mobility services, especially ride-hailing services, have witnessed a massive demand in recent years, attributed to the consumers' preference for low-cost commuting options. Since these cars are required to cover longer distances and generally travel for a longer duration compared to private vehicles, there exists a greater need to frequently replace oil and filters and opt for other routine maintenance services such as body care, which, in turn, positively impacts the demand for this segment. Moreover, with the increasing car age, a greater demand exists for services such as automotive tire replacement and wheel alignment, which contributes to the growth of the automotive maintenance and service market.
- The average age of passenger cars in the United States reached 13.6 years in 2023, compared to 2022, wherein the average age of passenger cars stood at approximately 12.7 years.
Various players in the ecosystem actively offer customers value-added services, such as online booking options, pick-up and drop-service, and home-based maintenance service options to attract a broader customer base. The tedious lifestyle of working professionals also supports the growth of this service as it helps eliminate the time required to visit a service center and wait for a longer duration. Therefore, in the coming years, new entrants in the market will extensively focus on offering doorstep car servicing options, which is expected to contribute to the segment's growth between 2024 and 2029.
Asia-Pacific is Expected to Dominate the Market Between 2024 and 2029
The growing urbanization rate across Asia-Pacific, especially in countries such as India and China, leads consumers to opt for private vehicles for daily transportation and commuting. Therefore, the increasing passenger car sales across the region facilitate the growing need for automotive repair and maintenance services. Moreover, under-developed road conditions in certain areas in Vietnam and other countries negatively impact vehicle conditions. Hence, consumers in these countries require frequent visits to repair shops for vehicle servicing purposes, which, in turn, positively affects the growth of this segment.
- According to the Society of Indian Automobile Manufacturers (SIAM), passenger car sales in India reached 3.89 million units in FY 2023 compared to 3.07 million units in FY 2022, representing a Y-o-Y growth of 26.7% between FY 2022 and FY 2023.
Furthermore, the growing vehicle parc in India and China also catalyzes the demand for automotive repair and maintenance services, owing to older vehicles requiring frequent servicing to maintain their optimal condition. Apart from the market for passenger car servicing, the region also witnesses a massive opportunity for the commercial vehicle servicing industry. The expanding road freight sector, coupled with rising investments to develop the regional public transportation ecosystem, is also contributing to the growth of the automotive repair and maintenance service market.
- According to the Society of Indian Automobile Manufacturers (SIAM), the sales of new light commercial vehicles in India reached 603.4 thousand units in FY 2023 compared to 475.9 thousand units in FY 2022, recording a Y-o-Y growth of 26.7% between FY 2022 and FY 2023.
- According to the International Organization of Motor Vehicle Manufacturers (OICA), commercial vehicle sales in Japan stood at 786.36 thousand units in 2023 compared to 753.02 thousand units in 2022, recording a 0.4% Y-o-Y growth between 2022 and 2023.
Assessing the lucrative opportunity in the market, various players, such as Nippon, are strategizing to expand their business presence in Asia-Pacific. For instance, in April 2024, Nippon announced the launch of its brand Mastercraft in India to cater to the aftermarket body and paint repair service needs. In the coming years, Asia-Pacific witnessed the integration of multi-brand repair workshop centers to compete with local garages, which is highly favorable among consumers in the area for minor maintenance and repair work.
