2020
8
Canada Auto Service, Maintenance and Repair Market Report 2020
2020-08-27T16:14:21+01:00
OX987642
3695
123696
[{"name":"Automotive","url":"https:\/\/store.mintel.com\/industries\/transport\/automotive"}]
Report
en_GB
“Many consumers are concerned about being taken advantage of by mechanics who over-charge for their services. Transparency is critical in this regard, as shop employees should make customers feel well…

Canada Auto Service, Maintenance and Repair Market Report 2020

£ 3,695 (Excl.Tax)

Report Summary

Everything you need to make the right decisions

Providing the most comprehensive and up-to-date information and analysis of the Canada Auto Service, Maintenance & Repair market, and the behaviors, statistics, preferences and habits of the consumer.

Mintel has the answers you’re looking for

What are the key challenges facing the industry? Who is the consumer and what do they want? Where are the opportunities, where are the risks and what lies ahead?

Covered in this report

With auto maintenance and repair considered an essential service across Canada during the current COVID-19 pandemic, the category has continued to operate. As of May 19 in Ontario, dealerships in the province were allowed to fully open under safety guidelines with other provinces having already done so or following suit. Auto service, maintenance and repair are critical to the optimal operation of any vehicle and help prevent vehicle component failure as well as costlier repairs down the road. Vehicle owners are most likely to take their vehicles in for service to a new car dealership; with an oil change the most commonly performed service

Expert analysis from a specialist in the field

Written by Andrew Zmijak, a leading analyst in the Automotive sector, his extensive knowledge delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

Many consumers are concerned about being taken advantage of by mechanics who over-charge for their services. Transparency is critical in this regard, as shop employees should make customers feel well informed on exactly what is needed and what the affected parts/service look like. Modern conveniences such as booking an appointment online and free vehicle pick-up and drop-off will attract consumers who would rather not visit a service centre in-person, to be heightened by stay-at-home orders many are complying with due to COVID-19 Andrew Zmijak
Automotive Analyst

Table of Contents

  1. Overview

    • What you need to know
      • Key issues covered in this Report
      • Executive Summary

          • Market overview
            • Top takeaways
              • Impact of COVID-19 on auto service, maintenance and repair
                • Summary
                  • Figure 1: Short, medium and longer-term impact of COVID-19 on auto service, maintenance and repair, May 2020
                • The issues
                  • Competing against new car dealerships
                    • Figure 2: Service location, February 2020
                  • Many are wary of being taken advantage of by mechanics
                    • The perceived high cost of maintenance may lead some to DIY
                      • Figure 3: Cost-related attitudes towards auto service, February 2020
                    • The opportunities
                      • Consumers are loyal to a particular shop
                        • Figure 4: Top four vehicle maintenance behaviours, February 2020
                      • The majority believe in following their vehicle’s maintenance schedule
                        • Convenience is vital in the category
                          • Figure 5: Convenience-related attitudes towards auto service, February 2020
                        • What it means
                        • The Impact of COVID-19 on Auto Service, Maintenance and Repair

                          • Summary
                            • Figure 6: Short, medium and longer-term impact of COVID-19 on auto service, maintenance and repair, May 2020
                          • Opportunities and Threats
                            • Shelter-in-place orders have adversely affected the category in the short term
                              • Figure 7: Mr. Lube Instagram post, June 2020
                            • The latter half of 2020 should see things improve
                                • Figure 8: We’re here to help | Hyundai Canada, May 2020
                              • Longer term, the market will stabilize
                                • Impact on the market
                                  • Auto parts supply impacted but to a small degree
                                    • Car sales to plummet, with longer-term effects on auto maintenance
                                      • A permanent move to working from home could impact car ownership
                                        • How the crisis will affect key consumer segments
                                          • Older consumers will likely avoid leaving the home unless necessary
                                            • Convenience is key in attracting parents
                                              • How a COVID-19 recession will reshape the auto service, maintenance and repair industry
                                                • Perception of financial health was already weakening
                                                  • COVID-19: Canadian context
                                                  • The Market – What You Need to Know

                                                    • The growing cost of new vehicles to affect category
                                                      • Less driving means reduced demand for fuel
                                                        • A growing population due to immigration to support category
                                                        • Market Factors

                                                          • The growing cost of new vehicles to affect category
                                                            • Less driving means reduced demand for fuel
                                                              • Figure 9: Average retail prices for regular gasoline in Canada, by week, 2017-20
                                                            • A growing population due to immigration to support category
                                                            • Key Players – What You Need to Know

                                                              • Dealerships hold a positive image
                                                                • Consumers will still need their cars to be running properly
                                                                  • Stay-at-home orders result in less driving
                                                                    • Price concerns persist
                                                                      • The effect of COVID-19 on service procedures
                                                                        • Brands are offering relief and giving back
                                                                        • What’s Working?

                                                                          • Dealerships hold a positive image
                                                                            • Figure 10: We’re here to help | Hyundai Canada, April 2020
                                                                          • Consumers will still need their cars to be running properly
                                                                          • What’s Struggling?

                                                                            • Stay-at-home orders result in less driving
                                                                              • Price concerns persist
                                                                              • What’s Next?

                                                                                • The effect of COVID-19 on service procedures
                                                                                  • Brands are offering relief and giving back
                                                                                    • Figure 11: Ford Canada, Instagram post, April 2020
                                                                                    • Figure 12: Subaru, print ad, April 2020
                                                                                • The Consumer – What You Need to Know

                                                                                  • Most acquired their vehicle new
                                                                                    • Oil changes are the most commonly performed service
                                                                                      • New car dealerships are the go-to for service
                                                                                        • Two thirds go to the same location for their service needs
                                                                                          • The majority are habitual with where they get their oil changed
                                                                                            • Maintenance and repair costs keep rising
                                                                                            • Vehicle Ownership

                                                                                              • Nearly half of Canadian households have a single vehicle
                                                                                                • Figure 13: Number of vehicles in the household, February 2020
                                                                                              • Most acquired their vehicle new
                                                                                                • Figure 14: Type of vehicle purchase, February 2020
                                                                                              • Income plays part in shaping type of vehicle purchase
                                                                                                • Figure 15: Type of vehicle purchase, by household income, February 2020
                                                                                              • Chinese Canadians are much more likely to buy new
                                                                                                • Figure 16: Type of vehicle purchase, Chinese Canadians* vs overall, February 2020
                                                                                              • Young drivers are key target for certified pre-owned
                                                                                              • Service History and Location

                                                                                                • An oil change is by far the most common service performed
                                                                                                  • Figure 17: Service history, February 2020
                                                                                                • Some basic maintenance is of higher priority to older drivers
                                                                                                  • Figure 18: Active Green + Ross, Instagram post, April 2020
                                                                                                  • Figure 19: Service history, 18-44s vs over-45s, February 2020
                                                                                                • Men more likely to have had major work performed on their vehicles
                                                                                                  • Figure 20: Service history (select), by gender, February 2020
                                                                                              • Location for Repairs and Maintenance

                                                                                                • New car dealerships are the go-to for service
                                                                                                    • Figure 21: Service location, February 2020
                                                                                                  • Where are different age groups going?
                                                                                                      • Figure 22: Service location, 18-44s vs over-45s, February 2020
                                                                                                      • Figure 23: Midas ad, October 2019
                                                                                                      • Figure 24: Select attitudes towards auto service, 18-44s vs over-45s, February 2020
                                                                                                  • Vehicle Maintenance Behaviour

                                                                                                    • Most typically go to the same location for their service needs
                                                                                                      • Figure 25: Vehicle maintenance behaviour, February 2020
                                                                                                      • Figure 26: Toyota, online ad, March 2020
                                                                                                      • Figure 27: Vehicle maintenance behaviour, by gender, February 2020
                                                                                                    • Older groups more loyal and prefer to book appointments in advance
                                                                                                      • Figure 28: Vehicle maintenance behaviour, 18-44s vs over-45s, February 2020
                                                                                                  • Oil Change Behaviour

                                                                                                    • Most are habitual with where they get their oil changed
                                                                                                      • Figure 29: Oil change behaviour, February 2020
                                                                                                    • Older drivers more prudent about when and where they get an oil change
                                                                                                      • Figure 30: Oil change behaviour (select), 18-44s vs over-45s, February 2020
                                                                                                    • Younger men are more particular about oil changes
                                                                                                      • Figure 31: Oil change behaviour, men aged 18-44 vs overall, February 2020
                                                                                                  • Attitudes towards Auto Service

                                                                                                    • The vast majority believe that maintenance/repair costs keep rising
                                                                                                      • Figure 32: Mr. lube, acquisition mail, January 2020
                                                                                                      • Figure 33: Mr. lube, loyalty email, January 2020
                                                                                                      • Figure 34: Cost-related attitudes towards auto service, February 2020
                                                                                                      • Figure 35: Meineke – Doing Car Care Right, February 2020
                                                                                                    • Quebecers not too concerned about service costs
                                                                                                      • Figure 36: Cost-related attitudes towards auto service, Quebec vs overall, February 2020
                                                                                                    • Convenience is on the minds of many
                                                                                                        • Figure 37: Convenience-related attitudes towards auto service, February 2020
                                                                                                      • Convenience is vital in attracting parents
                                                                                                        • Figure 38: Convenience-related attitudes towards auto service, parents vs non-parents, February 2020
                                                                                                      • Online reviews can play a part in consumers choosing a service centre
                                                                                                        • Figure 39: Service centre-related attitudes, February 2020
                                                                                                        • Figure 40: Service centre-related attitudes, parents vs non-parents, February 2020
                                                                                                    • Appendix – Data Sources and Abbreviations

                                                                                                      • Data sources
                                                                                                        • Consumer survey data
                                                                                                          • Consumer qualitative research
                                                                                                            • Abbreviations and terms
                                                                                                              • Abbreviations

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