Pandemic damages Canada’s automotive service industry at $2.6 billion Study finds

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Pandemic damages Canada's automotive service industry at $2.6 billion
Study finds

According to J.D., the COVID-19 epidemic has decimated Canada’s auto service industry by $2.6 billion. Power Canada.

2021 Canada Customer Service Index — Long Term Study reveals that there has been a drop in the market for service of vehicles aged four through twelve years from $9.2 trillion in 2020 to $6.6 billion by 2021. The drop is attributed to decreased kilometres due to work-from home measures and other pandemic restrictions as well as the lack of options for service in certain markets.

Year over year the number of service visits fell by 20%. Of the remaining service visits, the aftermarket not only captured 54% of all customers, but also increased its market share, to 44% of industry total revenue, up from 40% in 2020. J.D. Power stated that this is a reverse of a trend which had seen new-vehicle dealers increasing their share in service business.

However, the news was not all bad. J.D. J.D. Ney is the lead for automotive at J.D. Power Canada said that some of these service visits are more valuable than others.

In a press release, he stated that “we’re witnessing the effect of larger macro-economic factors in the automotive sector.” The service industry has a bright future, despite the drop in revenue and service visits. Many car owners chose to repair their vehicle more than to trade in or pay the extra cost for a used vehicle. Prices have been rising lately and this led to many vehicle owners opting to keep it.

On a 1,000 point scale, the study also evaluated customer satisfaction. Overall satisfaction with dealers and other service providers was ranked at 791. This is unchanged from 2020. Satisfaction with 796 non-dealerships was greater than that with 786 dealers.

Audi dealerships were ranked the highest for overall customer satisfaction (825 points, also out of 1000 points), followed by Great Canadian Oil Change (823) and Volkswagen dealers (817).

This study examines satisfaction levels and loyalty of owners of vehicles between four and twelve years old and analyzes the customer experience when warranty work is performed. The study was done between April 2021 and June 2021 and used 8,101 respondents.



Publited Sat, 11 Sep 2021 at 01:09:51 +0000

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