The car maintenance market - France (2024)

1.2 The global automotive service and repair market

The global market for automotive repair and maintenance services was estimated at US$***.* billion in ****, and is expected to grow at a rate of *.*% per year to ****.

World, ****-****, in billions of US dollars Source: ****

The global market is highly consolidated, with a small number of players holding a large share. The main players include Asbury Automotive Group, Inc, Carmax Autocare Center, CarParts.com, Inc, EUROPART and Firestone Complete Auto Care. Many companies are investing in various technological innovations in automotive repair and maintenance services, which are the main drivers of the market.

Passenger cars make up the bulk of demand. In the EU, passenger car registrations were **% higher in June **** than in the same month of the previous year. [***]

Mergers and acquisitions are also a major growth strategy for some companies.

In particular, the automotive repair and maintenance business is being driven by increased demand for used vehicles from motorists in many regions.

The USA has the largest share of the global automotive repair and maintenance market. In North America, they account for over **% of sales.

Increased production of passenger cars and vehicle parts is one of the main drivers of sales growth in China. [***]

1.3 French market in good shape

To study sales linked to automotive maintenance and repair in France, we use NAF code **.**A: "Maintenance and repair of light motor vehicles".

Growth in sales (***) in motor vehicle maintenance and repair France, ****-*****, in billions of euros Source: ****

We then observe that the market has been in a steady growth phase since ****, despite a slight jolt in **** that remains very negligible compared to the statistics for the entire automotive industry during the Covid-**-related health crisis that same year. Between **** and ****, the market will grow by more than **% overall (***).

Several factors are contributing to this market growth:

Firstly, the growing number of cars on the road, which is becoming increasingly distinctive

Evolution of the French car fleet France, ****-****, in millions of vehicles Source: ****

Longer vehicle lifespans:

Evolution of the average age of the vehicle fleet France, **** - ****, in average age of fleet Source: ****

The decline in DIY (***), and are increasingly turning to professionals for more sophisticated repairs. Technical inspections have been tightened up and are more demanding, particularly the latest, which comes into force in October ****. A number of faults that used to be the subject of a simple remark will now result in a red inspection certificate or ...

2.1 Demand based on the number of used vehicle registrations

The automotive maintenance market depends to a large extent on the evolution of the French vehicle fleet, and the nature of new registrations (***).

Trend in the share of used vehicles in new registrations France, **** - ****, in % Source: ****

On average, used vehicles have accounted for three-quarters of new registrations over the past four years. This share is tending to increase slightly, which logically benefits the car maintenance market.

The breakdown of vehicles sold second-hand by age is as follows:

Used vehicle sales by age France, **** - ****, in thousands Source: ****

Over the last two years, we've seen an ageing of the vehicle fleet. Although sales of used vehicles have fallen overall, the decline has been greater for the segment of vehicles less than ** years old on average. Sales of vehicles less than two years old fell by almost **%. In contrast, sales of vehicles over ** years old rose slightly (***).

This dynamic benefits the car maintenance market. Indeed, the sale of very old vehicles inevitably requires special maintenance, and thus helps to drive demand.

2.2 A demand whose structure is set to change over the coming years

According to theANFA observatory, the number of maintenance and mechanical repair operations on passenger vehicles fell until ****, but has been on an upward trend since then. However, TCG Conseil, in its **** outlook report, is betting on a very slight fall in the number of after-sales operations by ****, which would be largely due to the increasing reliability of vehicles.

Trend in the number of after-sales operations in the automotive maintenance and repair sector France, ****-*****, in thousands of operations Source: ****

ANFA estimates the number of after-sales operations at ** million for ****. It is estimated that the evolution of this number will depend on various factors relating to vehicles, such as the fall in average mileage, vehicle reliability and the evolution of the vehicle fleet. A change in vehicle engines would therefore have a significant impact on after-sales operations, since it would reduce them by between -*.*% and -*% by ****. In this case, the number of aftersales operations per year would rise from around ** million to ** million, or even ** million if there is strong development of electric vehicles, which seems to be well underway.

Evolution of after-sales labor hours France, ****-*****, in thousands Source: ****

However, the number of man-hours in the sector is likely ...

2.3 Focus on electric vehicles, where maintenance requirements differ from those for combustion engines

As mentioned in the previous section, demand for vehicle maintenance and servicing is likely to evolve in tandem with vehicle motorization. For this reason, we need to look at the trend in new vehicle registrations in France:

Evolution of the type of energy used in new vehicle sales France, ****-****, in thousands Source: ****

The trend has clearly been towards electric and hybrid vehicles for some years now. Indeed, the number of electric car registrations rose by ***% in ****, to account for *.*% of total registrations this year. Similarly, hybrid car registrations increased by **% to represent **% of **** registrations. This growth in electric vehicles is naturally taking place at the expense of combustion engines. Gasoline and diesel respectively accounted for **% and **% fewer new registrations than in ****. Nevertheless, these two types of engine still account for the vast majority of the French vehicle fleet.

Trend in electric vehicle registrations France, ****-****, in thousands Source: ****

Between **** and ****, electric vehicle registrations will more than double.

This sharp increase in registrations can be attributed to a whole range of favorable factors. First of all, European standards have finally forced manufacturers - under threat ofheavy fines - to comply with the ** g CO*/km limit for their average emissions, and ...

2.4 The number of road accidents as a reason for application

to get a complete picture of the reasons behind the demand for car servicing, we need to look at the statistics on road accidents:

Number of bodily injury accidents France, **** - ****, in thousands Source: ****

The number of road accidents is another determinant of demand for automotive maintenance and repair. Accidents have tended to decrease since road safety has become a serious concern for the authorities. In ****, there will be *,*** fewer accidents than in ****, proof that prevention and stricter regulations are bearing fruit.

2.5 New demand trends: LOA and LCD/LLD

Leasing with a purchase option is becoming increasingly popular, and this is benefiting the car maintenance market. This type of leasing often includes vehicle maintenance.

Trend in the amount allocated to financing new private vehicles France, **** - ****, in millions Source: ****

For almost ten years now, the amounts allocated to financing new private vehicles through LOA have been rising sharply, while conventional credit has been losing ground. The amount allocated to financing new private vehicles under LOA was over *.* billion euros in ****, compared with *.* billion in ****.

Evolution of new car purchases by LCD companies France, **** - ****, in thousands of registrations Source : Journal de l'Automobile Short-term rental companies enjoyed a period of growth between **** and ****. The year **** put an end to this boom, but registrations rose again in ****. In ****, registrations associated with this sector fell to just under ***,***.

3.1 The structure of the automotive maintenance and repair sector

Automotive service and repair value chainFrance

In the general structure of the French market, thefollowing types ofplayer can be distinguished:

Independent garages: These are mechanics and/or car repairers who are not part of official brand networks. They are generalists, and may often have a complementary specialist activity (***). They may also be approved by one or more manufacturers to provide after-sales service for their brands. Dealers: They operate within the legal framework of a dealership contract with the manufacturer, selling and servicing their brand's vehicles. With the entry into force of the new regulations (***), dealers are no longer the only ones authorized to provide after-sales service for brand vehicles. Brand agents: These are bound by an agency contract with a dealer for the sale of vehicles, on which they are commissioned. Their core business is to carry out maintenance and repair work on their brand's vehicles, but not exclusively. Specialized chain networks: There are * different types of network: fast-fit networks (***) specializing in the sale of accessories and spare parts, as well as some maintenance activities.

3.2 Companies and their employees

Since ****, the number of companies dedicated to the maintenance and repair of light vehicles has risen steadily, from just over **,*** to over **,***. Since ****, more and more micro-businesses have been set up in the sector, a trend that has been accentuated by the opening up to competition imposed by the European Commission.this trend was accentuated by the European Commission's decision in **** to open up the sector to competition, meaning that automakers can no longer force their customers to have their vehicles repaired by authorized dealers or repairers.

Growth in the number of light vehicle maintenance and repair businesses France, ****-****, in units Source: ****

However, the number of salaried employees did not start to rise until ****, meaning that the majority of new businesses created between **** and **** were small businesses and therefore independent repairers.

Change in the number of employees in the light vehicle maintenance and repair sector France, ****-****, in thousands Source: ****

Let's now take a look at the regions where automotive repair and maintenance activity is concentrated, based on the establishments present there:

Source: ****

The region with the highest concentration of activity is Auvergne-Rhône-Alpes, with **** establishments in the sector. Other major regions with a high concentration of companies in this ...

3.3 Distribution breakdown

The market structure by category is as follows:

Breakdown of workshop entries by circuit and vehicle age France, ****, in Source: ****

Dealers and agents are the most numerous on the market (***). The breakdown of market share for workshop entries is slightly different, however:

Market share of workshop entrances France, ****, in Source: ****

Auto centers and fast-fit repairers are over-represented in the sector's sales. They account for **% and *% of market share respectively, even though they represent only *.*% of operators overall.

3.4 Breakdown of the maintenance and repair market by engine type

In ****, the maintenance and repair market was mainly driven by the diesel and petrol segments, accounting for **.*% and **.*% of sales respectively. The hybrid, plug-in hybrid and electric segments are hardly represented at all, firstly because these vehicles are more recents and therefore require less maintenance and repair work, but also because combustion engines still accounted for almost **.*% of the French car fleet.

Automotive aftermarket sales by engine type France, ****, in Source: ****

But this breakdown of the automotive maintenance and repair market is set to change over the next few years, as will the French car fleet, which is already undergoing a profound transformation. Indeed, according to the various scenarios drawn up by ANFA for the year ****, diesel vehicle servicing is set to lose between **% and **% of market share to other types of vehicle. Gasoline-powered vehicles, on the other hand, are expected to gain a little more ground, with a higher market share of between *% and **% in the maintenance-repair market. The segments that are likely to gain the most in market share are electric, hybrid and plug-in hybrid.

Scenarios for the breakdown of automotive aftermarket sales by engine type France, ****, in Source: ****

In particular, according to ANFA estimates, the share of electric ...

4.1 Types of automotive maintenance and repair services on offer

To summarize the range of services available in terms of maintenance-repair or, more broadly, automotive after-sales, we use the classification of the Mecagoo service comparator, which is set out in the table below:

4.2 Vehicle maintenance and repair prices

First of all, it's important to remember that, although the purchase price is the most important part of the total cost of a car, on average it accounts for only **% to **% of total vehicle expenditure.

To this purchase price must be added other expenses such as insurance, fuel, maintenance, parking and tolls, which may also come into consideration.

On the more specific subject of maintenance, it is possible to draw up a comparison of the different annual costs for different vehicle models.

Among the maintenance and repair services for private vehicles, here are the most common services and their average price according to IDGarages' Baromètre des prix de la réparation automobile **** (***):

General overhaul: €*** Front discs and pads: €*** Distribution kit: € *** Front axle alignment: €** Descaling: €** Clutch kit: €*** Front shock absorbers: €*** Electronic diagnostics: €** Air conditioning refill: €** Air conditioning overhaul: €***

Service prices also vary from region to region: the price of a standard service varies from region to region, as illustrated by the map and table below:

Source: ****

On average, there is a difference of €** in the price of car servicing, depending on the region where it is carried out. This margin can represent up to *.*% of the total cost of servicing a ...

4.3 Maintenance price trends over the years

Change in annual consumer price index for passenger car maintenance and repairs France, ****-*****, index base *** in **** Source: ****

The structural evolution of consumer prices (***) shows a steady upward trend in the cost of vehicle maintenance from year to year, which was already the case before the ****s. Indeed, the consumer price index has risen from **.* in **** to ***.* in ****, corresponding to an increase of almost **% in consumer prices.

This has been confirmed in recent years, and can be explained by several factors:

Vehicles and on-board systems are more sophisticated and require more and more precise and often expensive tools, which also entails a need for training in these new techniques and tools. Availability of products/parts needed for maintenance: particularly in ****, industry professionals may have experienced the beginnings of a shortage of spare parts and tires, according to Christophe Pollet, General Manager of the Point S Group. Consumer preferences: there is a clear trend in France towards SUVs and sedans. Yet these * types of model are the ones whose parts are most expensive to repair. [***]

The acceleration in inflation from **** onwards is certainly a consequence of the generalized inflation in France, caused by the war in Ukraine and the climate of uncertainty ...

5.1 Regulations governing automotive service and repair professionals

Free competition between industry professionals

Under the new regulations in force since June *, ****, ratified by the European Commission, consumers are free to turn to any repair shop for maintenance and repair, both during the legal warranty period and the free extended warranty period. Vehicle owners must be able to have their vehicle serviced and repaired in the garage of their choice, without having to fear the manufacturer's failure to repair design faults. Manufacturers who make warranties conditional on the vehicle being serviced and repaired within their own network, or on the use of their own brand spare parts, are in breach of competition law. It gives independent repairers access to repair, maintenance, tooling and training information provided by the vehicle manufacturer. It gives multi-brand repairers access to all vehicle manufacturer spare parts Members of vehicle manufacturers' approved networks are authorized to buy spare parts and tools from independent distributors[***]

Professional skills

There is a wide range of technical training courses for the automotive maintenance-repair professions: the most common are the CAP, BEP or BP for auto repair mechanics and the CAP for auto body repairers[***] The breakdown is as follows: CAP level: CAP maintenance des véhicules options voitures particulières; ...

5.2 Regulations governing vehicle owners

All passenger cars with a Gross Vehicle Weight Rating (***) of *.* tonnes or less are subject to a roadworthiness test.

The first inspection must be carried out within * months of the vehicle's fourth anniversary. Thereafter, it must be carried out every * years.

No invitation is sent out, however: the inspection is carried out entirely at the customer's initiative. However, it is possible to find the inspection deadline on the roadworthiness sticker affixed to the vehicle.

Since May **, ****, the nomenclature of CT inspection points has changed: it has gone from *** to *** inspection points. The potential number of defects likely to be found, now called "failures", amounts to *** divided into three categories: minor failures (***).

Minor faults: faults that have no significant impact on vehicle safety or the environment Major failures: faults likely to compromise vehicle safety, have a negative impact on the environment or endanger other road users Critical failures: malfunctions which constitute an immediate danger to road safety and/or the environment

When a roadworthiness test is carried out, a report is issued to the private individual, containing the following information:

Nature of inspection Date of inspection The validity of the inspection the nature of the next inspection Inspection result: Letter A: Favourable ...

6.1 Player segmentation

• Speedy (Bridgestone)
• Mobivia Groupe (Norauto, Midas)
• Feu Vert
• Carglass France (D'Ieteren Group)
• Point S
• Michelin Groupe
• Euromaster
• Thule
• Oscaro.com (D'Ieteren Groupe)
• AD Autodistribution Groupe (D'Ieteren Groupe)
• TVH (D'Ieteren Groupe)
• Parts Holding Europe - Auto Distribution (D'Ieteren Groupe)
• Norauto
• Roady (ITM Intermarché)
• Autobacs
• Garages AD Autodistribution (Autodistribution groupe)
• Auto Primo
• Auto Leclerc
• Provac (PAC Groupe)
• Shine group
• Gys
• Delko
• Alliance Automotive Groupe
• First Stop (Bridgestone)
• Eurorepare