5 Key Trends To Ramp Up Your Automotive Business For Success In 2021
Globally, the automotive & auto repair industry was one of the hardest hit during the COVID-19 crisis. With factory closures, disruption to trade, production of parts on hold or increased cost of supplies and shutdowns, a lot of businesses were left crippled for months on end.
While the recovery stage has started for many within this industry, it may take at least six to nine months for operations to return to a new “normal”. Therefore it’s imperative for business owners to prepare and position their companies to thrive in 2021 now.
Below are 5 major trends to keep in mind when planning for this success in 2021;
More Reliable Vehicles
Vehicles being produced today are more reliable than ever before. Many of them can go years and tens of thousands of miles before they need any of the maintenance services that typically brought them into auto repair shops on a regular basis.
With synthetic engine oils designed to last a very long time before it needs to be changed and other maintenance and repair services covered by the dealership for several years after the vehicle is purchased, these new, more reliable vehicles will change the auto repair shop’s role dramatically.
This also has a major impact on purchase of new vehicles as owners are now upgrading less frequently.
Increased Vehicle Leasing
Another growing trend that will impact the automotive industry in 2021 is the increase of vehicle leasing rates. Consumers choosing leasing vehicles over buying them is expected to continue beyond 2021. That means significantly less maintenance and repair work for auto repair shops unless they form partnerships with companies that lease vehicles.
Reduced Demand For Replacement Auto Parts
A reduce in the demand for replacement auto parts is another trend that’s anticipated to hurt the auto repair industry going into 2021. With advancements in automotive technology and the production of higher quality components that last longer, vehicle owners are finding it increasingly easier to maintain their vehicles themselves and consequently there is less frequent need for automobile repairs.
Industry experts claim demand may continue to reduce even further in 2021 and beyond.
Growing Preference For Having Dealerships Handle Repairs
One of the emerging trends that seems to favour dealerships instead of auto repair shops is the recent preference for vehicle owners to have their maintenance and repair services done at an auto dealerships. This has led to a steady decrease in the number of people who take their vehicles to local auto repair shops.
Some auto industry experts say this trend is related to the increase due to the number of people who lease their vehicles from the dealerships and new vehicle warranty rules.
The challenge for local auto repair shops is to find a way to tap into that market.
Digitisation, Increasing Automation And Electrification
The increasing use of digital, automation features in modern vehicles have revolutionised the automotive industry and is putting pressure on auto repair shops to upgrade their technology to be able to provide maintenance and repair services for these types of vehicles in 2021 and beyond.
Owners of these cutting-edge vehicles must be confident local auto repair shops have the trained technicians and technology to properly repair these technologically advanced vehicles. Whilst this trend may impact auto repair shops negatively, it is a positive trend for automotive dealerships who offer repair & maintenance services within the dealership.
Despite the challenging trends predicted for 2021, the future can still be bright for the Automotive & Auto Repair industry.
The key is for business owners to be diligent and proactive in investing in the latest and most-effective tools, equipment, technology and marketing to continue to be profitable in 2021 and beyond.
This is where Capify can help; with access to $5,000 – $300,000 within 24 hours, we are opening the window of opportunity for your business to grow and succeed in 2021.
Click here or call us on 1300 760 930 to get started.