Several disruptive developments and industry issues are set to alter the auto and car maintenance sector picture for 2021 and far beyond. Automotive repair businesses that want to survive and flourish must start to equip their enterprises and employees for a reality that will be radically different as a result of new and revolutionary trends.
They will necessitate the purchase of more advanced systems, apparatus, and machinery. Additionally, many car repair professionals will need to be trained to guarantee they have the necessary skill set to address the varied requirements of vehicle repair in 2021 and beyond. Let’s dive into the current trends in the industry.
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Better Vehicles, Fewer Repairs
Today’s vehicles, lorries, and SUVs are far more dependable than they have ever been. Several of these can go for seasons and hundreds of kilometers without needing to replace their oil or oil filtration when these were the kinds of components that drove cars into service centers on a routine basis. However, synthesized engine oils are engineered to last longer before needing to be updated and it takes longer before cars need other kinds of repair and maintenance. These innovative, more dependable automobiles will drastically alter the role of auto repair services.
Rising Demand for Car Lease
Increased car leasing rates are another rising automotive development that will affect car repair businesses in 2021 and beyond. Vehicle lease default rates increased from a little over a million to nearly 5 million between 2009 and 2016. And the tendency of customers preferring to lease rather than purchase cars is sure to persist. Unfortunately, this implies that car repair businesses will have much fewer repair works unless they establish agreements with firms that lease cars.
Decreased Demand for Spare Parts
Another factor that is expected to harm the car repair business in 2021 is decreased demand for replacing vehicle components. Motorists are making it more challenging to fix and service their cars alone as motor technology changes. Consequently, stocks in large automotive parts retailers such as O’Reilly Automotive have dropped by about 22%.
According to industry analysts, the better value parts being manufactured now survive better due to advanced metal fabrication, resulting in a less common need for car maintenance. That’s why economic activity within the industry may remain sluggish in the coming seasons.
Letting Dealerships Handle Repair
Car owners have demonstrated an increasing preference for repair and maintenance services at auto dealerships in recent times. This has resulted in a continuous decline in individuals taking their cars to nearby automotive repair businesses. According to some automotive industry analysts, this development is associated with increasing individuals leasing their vehicles from dealerships. The difficulty for local car repair businesses is to figure out how to get a piece of that industry.
Rising Demand for Modern Car Maintenance
The growing usage of technologies in modern cars has transformed the auto repair business. It further stresses the fact that vehicle maintenance businesses have to update their infrastructure to offer repair and maintenance services for digital, computerized, and hybrid cars by 2021. One of the main reasons is that the owners of these advanced cars want to be confident that their nearby automotive repair businesses have the qualified personnel and expertise to fix these technologically sophisticated cars.
New Markets Emerging in the Horizon
New market dynamics are causing significant economic shifts. This trend is being driven by shifting customer purchasing choices and the emergence of several new automobile technologies. Despite the impending transition to shared transportation, worldwide car sales will begin to escalate at a slower 2 percent annual pace by 2030.
E-hailing and other new services are expected to expand substantially in European, Asian, and North American city areas starting in 2021. This increased use of shared cars will result in more excessive wear and more significant demand for the expertise of auto repair services.
Upcoming Significant Changes
Most car industry professionals believe that the sector is facing an impending, broad, game-changing revolution. However, nobody knows what this development will mean for the business in the following decade. Most are referring to it as the “2030 automobile renaissance.” And the auto repair business has the difficulty of establishing itself to capitalize on the changes occurring throughout the automotive supply chain, which includes conventional vehicle manufacturers, distributors, customers, and marketplaces.
The automotive repair business has a promising future. The trick here is for companies to choose their positions appropriately. Hundreds of thousands of new and used cars will have to be updated, maintained, repaired, and managed in conventional and developing markets. Automotive service businesses who are attentive and strategic in putting in the most up-to-date and sophisticated tools, machinery, and software and ensuring that their service technicians are adequately educated will increase profits today and in the future.