After two years of steep declines in market value, Canada’s automotive services trade is poised to rebound strongly as Canadians return to the roads, according to research by JD Energy Canada.
Canada’s Buy Service Index 2022 – Long-Term Review, which tracks out-of-warranty vehicle service needs from four to 12 years, predicts a $10.9 billion market for 2022.
In contrast, the value of trade fell to $6.6 billion in 2021, after registering $9.2 billion in 2020 and $10 billion in 2019.
The study says driving is returning to pre-pandemic levels and pent-up demand for repairs is driving the rise.
“In addition to driving more, some owners are catching up on repairs that have been put on hold due to the pandemic, and others are hanging on to their cars longer due to stock-outs and excessive car prices. occasion,” said JD Ney. , Head of Automotive Observation at JD Energy Canada.
The study also predicts a drop in buyer satisfaction as the trade – like many sectors – struggles to recruit and retain skilled and educated workers.
“While it hasn’t affected overall satisfaction in the short period of time, we do see some leading indicators in this year’s study,” Ney said, highlighting prospects’ responses to questions such as whether the car has been brought up the first time or whether or not they could arrange the service at the times they wanted.
“Obviously, the auto trade is not immune to these larger macro points.”