Castrol predicts fall in number of franchised dealers

The Castrol Professional Car Servicing & Repair Trend Tracker report predicts that the number of franchised dealers is set to fall by 10 per cent over the next five years. This decline will come as the number of independent MoT testing stations grows by 5 per cent, the report adds.

The report revealed that the number of workshops supplying the aftersales markets has fallen by 14.4 per cent in a decade with the number of franchised workshops declining by 19.2 per cent.

From 2004 to 2014, the report identifies a contraction of mechanical service and repair workshops from 24,943 to 21,358, with franchised workshops accounting for 1,235 of this decline. Independent workshops and fast-fits account for the remaining 2,350 sites, a 12.7 per cent reduction in numbers.

Trend Tracker analyst Chris Oakham said: “Since the late 80s, the market for servicing and repairs has trended downwards in real terms, and the number of workshops has followed suit.

“Of course, there are many other factors including the consolidation of manufacturers’ franchise networks and a shake-out of financially underperforming independents.

The report forecasts that the number of workshops overall will remain broadly level over the next five years with around 21,565 sites set to be in operation by 2020, however service volumes are expected to continue the long-term trend for decline.

From 2004, the number of annual retail servicing and repair transactions in the UK has dropped from 50.4 million to 46.9 million in 2014. By 2020, this is forecast to fall by another 9.6 per cent to 42.4 million, partly as a result of rising new car sales populating the car parc with younger, more reliable cars with longer servicing intervals.

Nigel Head, head of marketing for Castrol UK & Ireland, said: “The decline in workshop numbers across the UK means that there is perhaps slightly less competition overall, but it presents a challenge for every business. While they’re competing with fewer outlets for aftersales work, the amount of work itself is also forecast to fall even further. This will pose a risk to dealers’ highly profitable aftersales teams.”

Comments
Comments closed

We see you are visiting us from China.

If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.