Table of Contents
Executive Summary
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- The market
- Sluggish performance from servicing, maintenance and repair market
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- Figure 1: UK car servicing, maintenance and repair market, by value, at current prices, 2010-20
- Average expenditure suffers a decline
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- Figure 2: Average expenditure on servicing, maintenance and repair market, by value, at current prices, 2010-15
- Expansion in car parc presents opportunities
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- Figure 3: UK car parc (new and used car registrations), 2010-15
- Companies, brands and innovation
- Independent garages are the most important channel
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- Figure 4: UK car servicing and maintenance: channel share by value, 2015 (est)
- Advertising expenditure represents a small share of revenues
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- Figure 5: Recorded above-the-line, online display and direct mail total advertising expenditure on car servicing and maintenance, by service type, 2011-15
- Service innovations dominate activity
- The consumer
- Second-hand cars are preferred
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- Figure 6: Vehicle ownership, August 2015
- A significant percentage of cars in ownership are over six years old
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- Figure 7: Age of car driven, August 2015
- Two thirds of car owners take personal responsibility for maintenance
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- Figure 8: Responsibility for maintenance and servicing, August 2015
- Under £500 annual expenditure is typical
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- Figure 9: Amount spent on maintenance and servicing, August 2015
- Most maintenance is undertaken at a service or a MOT
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- Figure 10: When car is serviced, August 2015
- Role of DIY and others varies depending on work to be undertaken on car
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- Figure 11: Where car is serviced, August 2015
- Quality of service is most important factor sought
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- Figure 12: Importance of factors when maintaining or servicing a car, August 2015
- Split opinions towards the internet
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- Figure 13: Interest in use of internet comparison websites, August 2015
- What we think
Issues and Insights
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- Dealing with an underperforming market
- The facts
- The implications
- Benefitting from the growing car parc
- The facts
- The implications
- Women represent an opportunity
- The facts
- The implications
The Market – What You Need to Know
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- Revenues suffer fall then rebound
- Annual expenditure down at £260 per vehicle
- UK car parc sees expansion
- Older vehicles now make up a greater percentage of the market
Market Size and Forecast
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- Revenues prove sluggish despite strong economic growth and new car market
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- Figure 14: Best- and worst-case forecasts of car servicing, maintenance and repair market, by value, at current prices, 2010-20
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- Figure 15: UK car servicing, maintenance and repair market, by value, at current and constant prices, 2010-20
Segment Performance
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- Around £260 per year is spent on servicing and maintenance annually
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- Figure 16: Average expenditure on servicing, maintenance and repair market, by value, at current prices, 2010-15
- Car repair costs around the UK
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- Figure 17: Average car maintenance servicing and repair costs in the UK, by region, 2015
- Distance travelled for car servicing
Market Drivers
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- New and used car sales remain buoyant…
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- Figure 18: New and used car market volumes, 2010-15
- ...driving up size of the car parc
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- Figure 19: Total UK car parc (new and used registrations), 2010-15
- Older vehicles benefit from expansion in the car parc
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- Figure 20: Age structure of the car parc in years, 2012, 2013 and 2014
- Interest in vehicle replacement likely to fall in the coming three years
- A fall in distance travelled is also evident
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- Figure 21: Trips, distance travelled and time taken, 2004-14
- Service intervals and MOTs are important times for scheduled maintenance
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- Figure 22: When car is serviced, August 2015
- Many motorists have a laissez-faire attitude towards faults…
- …as well as delaying on repairs
- Interest in DIY depends on type of work involved
- Other factors influencing the market
Key Players – What You Need to Know
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- Independent garages account for over half of all revenues
- Revenue growth good for many of the larger specialists
- Improvements taking place at a site level to make them customer-friendly
- Outlet numbers suffer a fall
- Advertising represents a small percentage of revenues
Market Share
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- Independents garages dominate market
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- Figure 23: UK car servicing and maintenance: channel share by value, 2015 (est)
Companies and Services
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- Many operators see good revenue performance
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- Figure 24: Leading autocentres’ turnover, 2010-15
- Profitability is proving more of a challenge
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- Figure 25: Leading autocentres’ operating profits, 2010-15
- Dealer market is dominated by big groups
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- Figure 26: Top ten main dealership groups in the UK, by turnover, 2014
- Investment in facilities
- Highlighting key safety issues
- Service plans offered by the leading vehicle manufacturers
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- Figure 27: Leading vehicle manufacturers’ servicing plans, 2015
- Price plays a major part in choosing where maintenance/servicing is undertaken
Channels to Market
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- Total number of outlets are in decline
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- Figure 28: Aftermarket outlets for sales of replacement parts 2010, 2012, 2014 and 2015
- Independent garages dominate in terms of outlet numbers
- Franchised dealers and fast fit outlet numbers stabilise
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- Figure 29: Top 10 tyre and exhaust fitting centres, by number of outlets, 2012, 2013 and 2015
- Autocentre sector dominated by Halfords
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- Figure 30: Leading autocentres, by number of outlets, 2013 and 2015
- The internet
Advertising and Marketing Activity
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- Fluctuating advertising expenditure
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- Figure 31: Recorded above-the-line, online display and direct mail total advertising expenditure on car servicing and maintenance, by service type, 2011-14
- MOT, servicing and tuning dominate expenditure
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- Figure 32: Recorded above-the-line, online display and direct mail total advertising expenditure on car servicing and maintenance, by service type, 2011-14
- Kwik Fit tops the list of advertisers
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- Figure 33: Recorded above-the-line, online display and direct mail total advertising expenditure by car servicing and maintenance channel, by advertiser, 2014
- Fast fit and autocentres increase expenditure
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- Figure 34: Recorded above-the-line, online display and direct mail total advertising expenditure by car servicing and maintenance channel, by advertiser, 2011-14
- Press and radio advertising dominate
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- Figure 35: Recorded above-the-line, online display and direct mail total advertising expenditure by car servicing and maintenance channel, by media type, 2011-14
- A note on adspend
Launch Activity and Innovation
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- Halfords invests in a new concept centre
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- Figure 36: Halfords’ new format autocentre in Croydon, 2015
- Remote automotive diagnostics app
- Free online vehicle management service
- Authorising repairs remotely using camera technology
- Price matching car servicing options
- Oil changing cut down to 90 seconds
- UK’s first extended cover for electric vehicles
- Andrew Page opens customer-focused retail stores
- Service plan extended to used cars
- Garage compare site
The Consumer – What You Need to Know
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- Used cars dominate the market
- Broad spectrum of vehicles of different ages
- Women, young adults and high earners rely more on others
- 70% spend up to £500 annually on servicing and maintenance
- Servicing and MOTs are common times for maintenance
- DIY is limited by the complexity of the maintenance task
- Quality is the most important factor sought from service providers
- Mixed views towards internet comparison websites
Car Ownership
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- Most car owners bought their vehicle used
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- Figure 37: Car ownership, August 2015
- Car ownership is the preserve of older adults
- London – A city of contrasts
- Income impacts on owning from new or buying used
Age of Car Driven
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- Car parc shows evidence of a focus towards newer cars
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- Figure 38: Age of car driven, August 2015
- Older adults prefer older cars
- Location, employment and socio-economic status also impact on age of vehicle ownership
- Strong car market boosts profile of new cars
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- Figure 39: Age of car driven, 2011-15
Responsibility for Maintenance and Servicing
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- Two thirds of drivers responsible for own maintenance
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- Figure 40: Responsibility for maintenance and servicing, August 2015
- Women want others to assist
- Many of the youngest car owners rely on someone else
- Income appears to have some impact on maintenance choices
Amount Spent on Maintenance and Servicing
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- Majority spend less than £500 annually on their vehicle
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- Figure 41: Amount spent on maintenance and servicing, August 2015
- Income plays a major part in what is spent on maintenance and servicing
- Larger households spend more in certain bands
- Men spend more on maintenance and servicing
- Those with the newest cars tend to pay more or pay nothing at all
- Interest in spending more on maintenance and servicing is limited
When a Car is Serviced
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- Specified times and MOTs are most popular times for servicing
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- Figure 42: When car is serviced, August 2015
- Older and younger adults have different thoughts on maintenance
- …as are men and women
- Urban and rural car owners show different preferences
- Income is an important factor in determining service strategy
- New car owners prefer specified servicing
- Distress servicing focuses on minimal expenditure
Choices When It Comes to Servicing and Maintenance
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- Complexity of job impacts on choice to undertake work
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- Figure 43: Where car is serviced, August 2015
- Women show a strong preference for using others while men for undertaking DIY
- Older and wealthier adults hone in on dealers while younger drivers have more complex preferences
- Interest in DIY varies depending the complexity of the work involved
- Dealers and fast fit outlets show geographical differences in popularity
- Owners of new cars are wedded to the services of dealers …
- …while those with older cars prefer independents and DIY
- Retailer fitting services more popular with those spending large amounts on their car
Importance of Factors for Servicing and Maintenance
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- Quality is sought by nearly all car owners
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- Figure 44: Importance of factors when maintaining or servicing a car, August 2015
- Old and young adults have especially strong demands
- Urban drivers want confidence in service providers and more!
Internet Comparison Websites
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- Variable interest in use of comparison websites
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- Figure 45: Interest in use of internet comparison websites, August 2015
- Age is an important factor in affecting interest
- Urban drivers are also a good prospect
- Wealthier car owners are ideally positioned as pioneers for this type of service
- Those spending most on their cars show strongest interest in such a service
Appendix – Data Sources and Abbreviations
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- Data sources
- Exclusions
- Market sizing and segment performance
- Fan chart forecast
- Abbreviations
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