Motor Vehicle Maintenance & Repair in the UK Industry Market Research Report now updated by IBISWorld

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The Motor Vehicle Maintenance & Repair industry benefited from its counter cyclical nature while the rest of the automotive sector struggled. As consumer and business confidence crashed, new vehicle purchases were delayed. Consumers instead opted for repairs and maintenance to keep older vehicles operational. The greater demand for repairs and maintenance led to higher service sales. Industry revenue is estimated to grow at an annualised 3.3% over the five years through 2012-13 to reach £20 billion. Revenue is expected to grow 2.2% in 2012-13, mainly led by demand for essential repair and maintenance. Demand for maintenance and repair services is forecast to slow over the five years through 2017-18. As consumer and business confidence recovers, vehicle owners will likely return to making new car purchases. The resulting lower demand for maintenance and repairs will moderate revenue growth. For these reasons, industry research firm IBISWorld has updated its report on the Motor Vehicle Maintenance & Repair industry.

The Motor Vehicle Maintenance & Repair industry benefited from its counter cyclical nature while the rest of the automotive sector struggled. As consumer and business confidence crashed, new vehicle purchases were delayed. According to IBISWorld industry analyst Aries Nuguid, “consumers instead opted for repairs and maintenance to keep older vehicles operational”. The greater demand for repairs and maintenance led to higher service sales. Industry revenue is estimated to grow at an annualised 3.3% over the five years through 2012-13 to reach £20 billion. Revenue is expected to grow 2.2% in 2012-13, mainly led by demand for essential repair and maintenance.
Operating profit margins have been stable over the past five years from an estimated 15.8% in 2007-08 to reach 15.4% in 2012-13. Nuguid adds, “margins were stable due to the high demand for industry services and are in contrast to the dwindling margins in the rest of the automotive sector”. Despite this, margins narrowed in 2008-09 as the global downturn emerged. Cost conscious vehicle owners looked for the cheapest services. The price competition led to a dip in operating profit margins.
Demand for maintenance and repair services is forecast to slow over the five years through 2017-18. As consumer and business confidence recovers, vehicle owners will likely return to making new car purchases. The resulting lower demand for maintenance and repairs will moderate revenue growth.
The Motor Vehicle Maintenance & Repair industry is fragmented, with the top four players expected to account for less than 5.0% of industry revenue. Therefore market share concentration is low but the level has been increasing in the past five years and will likely continue to grow due to consolidation among the larger players.
For more information on the Motor Vehicle Maintenance & Repair industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

Companies in the industry maintain and repair motor vehicles. They carry out general mechanical and electrical repair as well as car maintenance and servicing. They are also involved in bodywork, windscreen and tyre repairs. Car wash businesses are also included in the industry. Companies involved in the retreading and rebuilding and the car wash operations of petrol stations are not included in this industry.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

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