Maintenance and Repair of Motor Vehicles
Maintenance and Repair of Motor Vehicles
Vehicles
UK Market Synopsis
SYN082 · November 2016
Introduction
This synopsis outlines the trends and developments affecting the vehicle repair and maintenance
sector in the UK.
The main definition of the sector, according to standard industrial classification (SIC 2007) codes,
covers the following SIC code:
The main business activities covered in this synopsis relate to the servicing, maintenance and
repair of motor vehicles (SMR), which is carried out by franchised dealerships and independent
garages, but also by bodyshops, fast-fit centres, auto centres and tyre-fitters.
Wherever possible, this synopsis has been compiled from sources of information that can be
accessed online, such as industry surveys and press reports, government research, independent
market research and information from trade bodies.
• Industry regulation has helped to reshape the SMR sector by removing uncompetitive
business practices, specifically relating to the supply of spare parts and the provision of
maintenance and repair services. This has enhanced the market position of independent
service providers.
• Franchised dealerships, on the whole, are continuing to lose SMR market share to
independent garages and fast-fit centres. Independent garages and part-sellers held almost
two-thirds of the market in 2015, while franchised dealerships held around one-third of the
aftermarket (www.smmt.co.uk/wp-content/uploads/sites/2/FS_SMMT_THE-IMPORTANCE-
OF-THE-UK-AFTERMARKET.pdf).
• Since 2012, sales of new cars have increased again, leading to a growing proportion of cars
under manufacturers' warranty, largely serviced by franchised dealerships. More reliable and
better-made cars are contributing to the ongoing ageing of the UK's 'car parc'.
Industry structure
Competitors in the SMR sector include franchised dealerships, manufacturer-owned dealerships,
independent garages and workshops, bodyshops and fast-fit and auto centres.
Demand for SMR services is generated primarily by insurance companies and individual
consumers.
Franchised dealerships
Franchised dealerships sell new and used vehicles and provide aftersales services that include
the sale of vehicle parts, and vehicle servicing and repair. They also provide administrative
services such as car finance, insurance and warranties. The Society of Motor Manufacturers and
Traders (SMMT) estimated that nearly 7,500 franchised aftermarket service locations employed
over 90,000 people in the UK in June 2016 (www.smmt.co.uk/wp-content/uploads/sites/2/
FS_SMMT_THE-IMPORTANCE-OF-THE-UK-AFTERMARKET.pdf, page 12).
To use a manufacturer's brand and retail formula, dealerships pay a franchise fee to a vehicle
manufacturer. Although vehicle owners are free to take their vehicles for repair and service to
any garage they choose, many remain loyal to their original dealer to take advantage of the
manufacturer's extended warranties and service plans.
The main UK operator in the franchised dealership sector is Pendragon PLC. The second-largest
franchised dealership group, in terms of revenue, is the Sytner Group, and other leading groups
include Lookers Plc, Arnold Clark Automobiles and Inchcape Retail.
Manufacturer-owned dealerships
Many vehicle manufacturers run their own retail operations, often alongside franchised networks.
Following the economic downturn in 2008, manufacturers attempted to cut costs and maximise
income by streamlining their operations.
As in the case of franchised dealerships, car owners are not under an obligation to return their
vehicle to the manufacturer for repairs and servicing, although enhanced dealer warranties
and service plans may give a manufacturer-owned dealership an advantage. However, similar
to franchised dealerships, manufacturer-owned dealerships tend to operate from showrooms
and premises with relatively high overheads, and therefore can struggle to compete with
independent garages on price.
The main manufacturer-owned dealership groups include the Mercedes-Benz Retail Group, Trust
Ford (Ford Retail), Renault Retail Group and Citroën Retail Group.
Authorised repairers are approved by manufacturers to carry out repairs and services to warranty
standards, and receive access to technical information and spare parts. Motor Vehicle Block
Exemption rules mean that manufacturers cannot restrict competition, and must allow any
garage that meets the required qualitative standards to join their authorised repairer network.
Authorised repairers are not obliged to buy spare parts from their manufacturers, and are free to
source them from suppliers of their choosing.
The UK's largest chain of independent garages is Halfords Autocentres, which operates from over
300 sites.
Bodyshops
Car body repair workshops or 'bodyshops' are skilled, capital-intensive operations that
require a high degree of expertise and expensive specialist equipment. The UK's largest
specialist bodyshop, Nationwide Crash Repair Centres, has 125 sites across the UK
(www.nationwiderepairs.co.uk/about-us). However, the vast majority of specialist bodyshops are
small, single-site operations.
The number of primary bodyshops in the UK has declined from 5,800 in 2000 to
approximately 3,000 in October 2016, according to the ABP Club Economic Climate Survey
(www.motortrader.com/motor-trader-news/automotive-news/bodyshops-turn-strong-
performance-2016-24-10-2016).
Bodyshops face increased competition from dealerships and independent garages, as well as
mobile repair services, many of which offer their customers SMART repairs (Small to Medium Area
Repair Techniques) that are often quicker and cheaper solutions.
The outlook for the car body repair market is largely dependent on a buoyant economy because,
as new and used car sales rise and levels of disposable income improve, the demand for private
repair work increases.
Major fast-fit chains in the UK include ATS Euromaster, Kwik-Fit and National Tyres and Autocare.
Insurance companies
Almost 70% of the accidents repair market originates from insurance work having a significant
impact on the profitability of the SMR sector. Larger insurance companies often create their own
Fleet operators
Fleet cars tend to be new cars and newer cars are more likely to be serviced in franchised
dealerships while still under a manufacturer's warranty. Fleet operators are also more likely to
favour the reliability and consistency of a larger garage network, and demand faster response
from repairers in order to keep vehicle downtime to a minimum.
Individual consumers
The number of licensed vehicles in Great Britain exceeded 30 million in 2015, according to the
Department for Transport. Almost 90% of cars were privately registered, 9% of them were owned
by companies and the rest were between keepers at the end of 2015.
The size of the licensed car parc has grown by 10 million cars and private ownership has
increased by 1% at the expense of company ownership since 1994. Due to technological
advances, car owners are able to keep their cars in working order longer and the average age of
the car parc has increased from 6.7 years in 1994 to 8 years in 2015 (www.gov.uk/government/
statistical-data-sets/veh02-licensed-cars, Table VEH0207 'Licensed cars by years since first
registration': Great Britain and United Kingdom).
Industry turnover
According to the Annual Business Survey, the SMR sector recorded £23.9 billion turnover in
2015, which is 44% higher than the size of the market at the height of the financial crisis in
2008. The annual growth rate in turnover between 2008 and 2015 ranged from a 23% increase
in 2011 to a 4% decrease in the following year. Average growth in turnover in the period was
over 6% (www.ons.gov.uk/businessindustryandtrade/business/businessservices/bulletins/
uknonfinancialbusinesseconomy/2015provisionalresults, Section G Distribution).
Number of firms
The number of registered firms in the motor vehicle maintenance and repair sector has risen
steadily from 34,222 to 40,076 between 2008 and 2015, an overall increase of 17%. The workforce
fluctuated, but overall, the number of people employed by the sector grew by 18% to 230,000 in
the same period. In 2015, this sub-sector contributed over £8 billion in Gross Value Added (GVA).
Geographical spread
A regional breakdown of how service providers were distributed around the UK in 2015
shows that most are based in the South East (15%), the East (11%) and the North West
(11%), while the smallest regional proportions are found in the North East (over 3%) and
Northern Ireland (under 3%), according to Office for National Statistics (ONS) estimates
(www.ons.gov.uk/businessindustryandtrade/business/activitysizeandlocation/datasets/
ukbusinessactivitysizeandlocation, Table UKBAA01a 'Enterprise / local units by 4 Digit SIC and UK
Regions').
More than 90% of service providers operating in the SMR market in 2015 had fewer than
10 employees and another 9% had fewer than 50 workers, according to the latest Business
Population Estimates report. Micro-enterprises with less than 10 employees account for more
than half of the workforce and almost one-third of the turnover generated (www.gov.uk/
government/statistics/business-population-estimates-2016, 'Business population estimates
for the UK and regions 2016: detailed tables; UK Groups, 452 Maintenance and repair of motor
vehicles').
Between 5,000 and 7,000 apprentices have completed vehicle maintenance and repair
apprenticeships each year since 2008/09 (www.gov.uk/government/statistical-data-sets/fe-data-
library-apprenticeships, 'Apprenticeships by framework, level and gender: achievements 2002/03
to 2014/15').
The increasing prevalence of extended manufacturer warranties, service plans and vehicle health
checks should lead to a greater volume of cars passing through the workshops of franchised
dealers, providing them with more opportunities to replace consumables (items subject to wear
The Department for Business, Innovation & Skills awarded £20 million research and development
funding to eight projects advancing autonomous vehicles in February 2016 (www.gov.uk/
government/news/driverless-cars-technology-receives-20-million-boost). An additional £35
million was made available for projects delivering connected and autonomous vehicles in
November 2016 (www.gov.uk/government/publications/funding-competition-connected-and-
autonomous-vehicles-2).
In order to plan for and support the proliferation of connected vehicles, both the Department for
Transport and the House of Lords Science and Technology Committee have held consultations
on the safety, legislative, insurance and infrastructure implications of the technology
(www.gov.uk/government/consultations/advanced-driver-assistance-systems-and-automated-
vehicle-technologies-supporting-their-use-in-the-uk and www.parliament.uk/autonomous-
vehicles).
The National Infrastructure Commission has also sought views from the public about the
development and deployment of the fifth generation of telecommunication (5G) which
is considered a prerequisite of a successful nationwide connected vehicle infrastructure
(www.gov.uk/government/consultations/5g-call-for-evidence).
The US Department of Transport released a Federal Automated Vehicles Policy in October 2016
(www.transportation.gov/AV).
A driverless car has been tested navigating its way through members of the public for the
first time around Milton Keynes railway station in October 2016 (www.bbc.co.uk/news/
technology-37618574). Further trials of autonomous cars, lorries and vans developed by rival
projects are expected to take place in the UK.
The safety features of autonomous cars have been called into question as a result of a fatal
crash of a Tesla vehicle in the US, allegedly using autopilot technology (www.theguardian.com/
technology/2016/jun/30/tesla-autopilot-death-self-driving-car-elon-musk). The Thatcham
Research Institute predicted that driverless cars potentially transform the SRM sector. Due
to crash-avoidance technology and new materials used for manufacturing cars, the Institute
predicts an increased demand for repairing cars that in the past would have been written
off. It is also likely that the skills required from technicians will evolve (www.iaea-online.org/
news/2016/02/technology-and-bodyshops-thatchams-verdict.aspx).
It has been estimated by the US National Highway Traffic Safety Administration that the
number of car crashes could fall by as much as 80% by 2035 as a result of driverless technology
(www.theguardian.com/business/2016/may/03/driverless-cars-dent-motor-insurers-volvo).
The Institute of the Motor Industry (IMI) has raised concerns over the availability of mechanics
capable of servicing electric and hybrid vehicles. In a survey carried by the IMI in October 2015,
more than half of the respondents planning to buy or lease a new car in the next two years
showed a willingness to consider purchasing an electric or hybrid vehicle (www.theimi.org.uk/
news/imi-raises-skills-and-regulation-concerns-demand-electric-and-hybrid-vehicle-surges). The
IMI estimated that around 1,000 vehicle technicians in the UK are qualified to work on electric
vehicles, with a further 1,000 technicians currently in training (www.fleetnews.co.uk/news/
environment/2015/12/02/skills-shortage-means-government-ev-plans-could-fail-warns-imi).
Hundreds of small family-owned workshops are expected to close in the next few years, as they
struggle to overcome skilled labour shortages and invest in technologically advanced tools
and equipment, according to Frost & Sullivan (www.smmt.co.uk/wp-content/uploads/sites/2/
FS_SMMT_THE-IMPORTANCE-OF-THE-UK-AFTERMARKET.pdf, page 25).
Price-comparison websites
As customers demand greater choice and better understanding of the costs of vehicle repair,
a new price-comparison website, WhoCanFixMyCar.com, found success with car owners. Its
135,000 online users can post their repair jobs on the website and choose the most appropriate
quote from the comfort of their own home. After the completion of the transaction, users
can post reviews of the service they received. More than 8,500 workshops were signed up to
WhoCanFixMyCar.com as at mid-November 2016 (www.whocanfixmycar.com).
In line with lower spending levels, local councils in England, excluding London, have cut their
highway maintenance budgets by 16%, while London boroughs have seen a 20% increase in
2015/16 (www.asphaltuk.org/wp-content/uploads/ALARM_survey_2016.pdf, page 4). The Local
In November 2015, the insurer LV= reported that damage to tyres, suspension and wheel rims
are the most common problems associated with potholes, with an average repair costing £267
(www.lv.com/about-us/press/article/national-pothole-problem-covers-12000-miles).
• Motor Vehicle Block Exemption Regulation - The automotive industry has been the
subject of Block Exemption Regulations (BERs) since 1985. The current Motor Vehicle Block
Exemption Regulation (MVBER), introduced in June 2010, has reshaped the vehicle aftersales
sector by removing uncompetitive business practices specifically relating to the supply of
spare parts and provision of repair and maintenance services.
• Commission Regulation (EU) 566/2011 - Since June 2011, Commission Regulation (EU)
566/2011 has required manufacturers to release electronic data that enables the exact
identification of replacement parts for vehicles, further enhancing the market position
of independent service providers by giving them the same access to technical repair
and diagnostic information as manufacturer-authorised repair shops (www.bcg.com/
documents/file111373.pdf). The Europe-wide legislation prevents manufacturers from
restricting customers to using their own dealerships. Manufacturers can still create networks
of exclusive dealerships, but they must also allow independent garages to repair and service
vehicles under warranty and to access technical information and spare parts.
• As part of the creation of a digital single market, the European Parliament has approved new
legislation on connected cars. From April 2018, all new cars sold within the European Union
will have to be equipped with eCall technology that will automatically alert emergency
services in the event of a serious accident (https://ec.europa.eu/digital-single-market/en/
news/ecall-all-new-cars-april-2018).
• The BSI Kitemark for Vehicle Damage Repair (BS10125, available at www.bsigroup.com/en-
GB/industries-and-sectors/automotive), is a voluntary scheme run by the BSI that defines the
standards that bodyshops and accident repair centres should meet when making repairs to
accident damaged vehicles.
• MOT tester training has been changed by the Driver and Vehicle Standards Agency
(DVSA), and from April 2016, MOT testers will have to take part in annual continuous
professional development courses and pass an assessment to maintain their certification.
See www.gov.uk/guidance/mot-training for more information.
• The Code of Practice for the Disposal of Motor Vehicle Salvage regulates the treatment of
written off and stolen vehicles that were subsequently recovered (www.abi.org.uk/~/media/
Files/Documents/Publications/Public/Migrated/Motor/Code%20of%20practice%20for
%20disposal%20of%20motor%20vehicle%20salvage.ashx). The British Vehicle Salvage
Federation reported in May 2016 that negotiations were ongoing to update the salvage
code (www.bvsf.org.uk/cms/index.php/industry-news/285-bvsf-rejects-latest-salvage-code-
of-practice-draft).
The Institute of the Motor Industry (IMI) is the professional organisation and Sector Skills Council
for the automotive retail industry and the governing body for the Automotive Technician
Accreditation scheme.
Tel: (01992) 511521
Website: www.theimi.org.uk
The Retail Motor Industry Federation (RMI) is a trade body representing automotive retail firms,
including franchised dealers, independent garages and bodyshops.
Tel: (020) 7580 9122
The Society of Motor Manufacturers and Traders (SMMT) supports and promotes the UK
automotive industry and provides industry data, reports and market intelligence.
Tel: (020) 7235 7000
Website: www.smmt.co.uk
RMI Bodyshops is a trade association formed after the merger of the Vehicle Builders & Repairers
Association (VBRA) and National Association of Bodyshops (NAB).
Tel: 0845 305 4230
Website: www.rmif.co.uk/associations/nab
The Institute of Automotive Engineer Assessors (IAEA) represents more than 1,200 automotive
engineer assessors.
Tel: (01296) 642895
Website: www.iaea-online.org
The British Vehicle Salvage Federation (BVSF) is the representative body of the vehicle salvage
industry in the United Kingdom.
Tel: (01303) 814325
Website: www.bvsf.org.uk
The Auto Body Professionals Club (ABP Club) is a trade organisation with over 1,750 individual
members.
Tel: (0116) 239 0519
Website: www.abpclub.co.uk
Business Population Estimates 2016 from the Department for Business, Energy & Industrial
Strategy
Website: www.gov.uk/government/statistics/business-population-estimates-2016
Trend Tracker is a provider of bespoke market research for clients in the automotive industry and
is a publisher of automotive market studies and reports, blogs and white papers.
The AA Populus motoring panel publishes a monthly survey on relevant motoring issues.
Website: www.theaa.com/public_affairs/aa-populus-motor-panel-surveys.html#tabview%3Dtab1
WhoCanFixMyCar.com is a price comparison website for car repair and maintenance jobs. The
owners of the website regularly publish statistics on the seasonality and prices of repair jobs
advertised on WhoCanFixMyCar.com.
Website: www.whocanfixmycar.com/blog
'UK roads gone to pot - national pothole problem now covers 12,000 miles' research carried out
by LV= Road Rescue
Website: www.lv.com/about-us/press/article/national-pothole-problem-covers-12000-miles
'The economic performance of the UK's motor vehicle manufacturing industry', ONS
Website: http://webarchive.nationalarchives.gov.uk/20160105160709/http://www.ons.gov.uk/
ons/rel/abs/annual-business-survey/car-production/sty-car.html
The 'Annual Local Authority Road Maintenance Survey 2016' is a report commissioned by the
Asphalt Industry Alliance and prepared by an independent market research company.
Website: www.asphaltuk.org/wp-content/uploads/ALARM_survey_2016.pdf
'Car Mechanics' is a monthly magazine for the car repair and servicing sector.
Website: www.carmechanicsmag.co.uk
'Motor Trader' is a monthly print and online publication containing news and analysis for the car
retailing sector. 'Motor Trader' also undertakes surveys and produces a series of market reports.
Website: www.motortrader.com
'bodyshop' magazine is a monthly online publication for the accident repair sector.
Website: www.bodyshopmag.com
Mechanex is a regional trade show for the motor repair industry, held in several UK cities
throughout the year. It attracts workshop owners and motor mechanics searching for suppliers of
parts and equipment.
Auto Body & Motor Claims Expo is a trade exhibition for the car repair and motor insurance
claims sectors. Exhibitors include vehicle manufacturers, insurers, legal services and accident
management companies. The exhibition attracts industry professionals such as bodyshop
owners, managers, insurers' engineers and fleet owners.
Website: www.autobodyexpouk.com
International Bodyshop Industry Symposium is the leading global conference and networking
provider for collision industry leaders and influencers.
Website: http://ibisworldwide.com
DISCLAIMER While all reasonable efforts have been made, the publisher makes no warranties that this
information is accurate and up-to-date and will not be responsible for any errors or omissions in the information
nor any consequences of any errors or omissions. Professional advice should be sought where appropriate.
Cobweb Information Ltd, Unit 9 Bankside, The Watermark, Gateshead, NE11 9SY.
Tel: 0191 461 8000 Website: www.cobwebinfo.com