But independent garages are revealed to be losing share to fast-fit outlets, with franchised dealers holding steady, when data from the report’s 2005/06 survey is compared with the previous 2003/04 survey period.
Seperating the aftersales market broadly into three areas – servicing, MOT testing and repairs – and the Trend Tracker research asks 18,000 motorists in total over an 18-month survey period what work they have had done and where. It shows that independent garages are losing market share in all three areas of the market; franchised dealers are gaining share in servicing and MOTs, while fast-fits are gaining share in servicing and repairs.
But both independent garages and franchised dealers are losing repair custom – which accounts for over half of all work carried out on cars – to the fast-fits, which are also beginning to take a small but growing share of the routine servicing market.
Trend Tracker analyst Robert Macnab comments: “The core advantage of independent garages over franchised main dealers is their lower overheads and lower pricing structures, but as cars become more technically complex, independent garages will need to reassure owners of younger cars that they are technically competent to work on more sophisticated vehicles.”
Macnab continues: “The main weakness of the majority of independent garages is a lack of brand or repair specialisation which can be marketed to consumers as specific areas of expertise. Fast-fit outlets by comparison have in the main fairly well recognised national brands and advertising budgets, and they also concentrate in specific types of repair activity, unlike independents which are still trying to be all things to all people.”
Independents lose ground in their core market, but begin to erode franchised dealers’ near-monopoly of work on new cars. Independent garages are losing business to franchised dealers in their core market segment of cars aged over six years, and they are also losing ground to fast-fit outlets in the 4-6 year old vehicle age segment. However, possibly as a result of consumers becoming more aware of their freedom of choice under the 2002 EU Block Exemption Regulation, independent garages are gaining ground with servicing of cars under four years old against franchised dealers, whose traditional two-thirds share of this once-captive market is beginning to erode.
Independent chains such as Unipart Car Care Centres and Kwik-Fit have recently begun explaining to motorists that their new car need no longer be serviced by a franchised dealer to maintain the manufacturer’s warranty cover. Independents which specialise in specific vehicle makes or areas of repair expertise may be competing more effectively with franchised dealers in terms of technical ability, but also by offering lower prices.
Fourteen per cent of the 18,000 motorists surveyed for the Car Repair Trend Tracker over the January 2005-June 2006 period had a service, MOT or repair carried out to their vehicle within the previous month. Of these, 30% were services, 28% were MOTs and 62% were repairs which add to over 100% showing that motorists sometimes have two types of work carried out in any one month such as a service with a repair or an MOT. As the average age of cars reduces and they have longer service intervals and become more durable, volume demand for servicing and repairs is steadily falling, despite an increase in the size of the car parc.
Independent garages account for 69% of all MOT tests carried out, but they are beginning to lose share to franchised dealers which now account for a 21% share. MOT tests have a significant role in driving demand for repairs, and the most common repairs and replacements carried out are related to MOT standards – tyres (14%), brakes (11%) and exhausts (7%). Other repairs carried out relatively frequently include body work, electrical, engine, battery, clutch and cooling system.
