Key findings from the Outlook Study, edition 2024-2025
The Outlook Study is the Automotive Industries Association of Canada’s (AIA Canada) flagship report, filled with data and analysis that gives auto care businesses the edge they need to make strategic decisions. The report, alongside its companion, the Data Visualization Tool 3.0, reflects current realities of the industry, as well as new and disruptive technologies, emerging markets, and changing consumer preferences. It covers topics such as:
- Trends for vehicles in operation across Canada
- National and regional trends for kilometres driven
- The health of the Canadian auto care sector in comparison to those in other countries
Watch our webinar to learn about the Outlook Study, edition 2024-2025. AIA Canada President and CEO, Jean-François Champagne, CAE, teams up with Dr. Mauricio Zelaya, PhD, Partner & National Economics Leader at EY, and Todd Campau, MAACP, ACP, Associate Director, Aftermarket Solutions at S&P Global Mobility, to explore the key dynamics shaping Canada’s auto care sector.
Growth in Canada’s auto care sector
The Canadian auto care sector has shown impressive resilience in overcoming pandemic-related setbacks, emerging stronger and more dynamic than before. Despite some lulls in 2020, the industry rebounded with consistent growth and has now recovered to pre-pandemic power. Over the past two years, core auto care businesses, such as automotive repair and maintenance, parts and accessories retail, and used vehicle parts wholesalers, have seen an increase in employment.
While there has been growth, to continue to succeed, auto care businesses must continue to adapt and innovate to meet changing consumer trends and expectations.
The impact of consumer trends
The way Canadians travel has evolved, creating both opportunities and challenges for the industry. Quebec has led the way regarding travel distances, but overall, the country has seen a shift. While 2022 was marked by increased travel during the spring and summer, 2023 saw a slowdown. Factors like remote work, rising fuel costs, and inflation influence these trends, requiring businesses to rethink how to engage with customers.
The most impactful trend among consumers is changing expectations, preferences, and attitudes toward vehicle maintenance and repair. Today’s consumers prioritize value, convenience, and trust when selecting service providers. Recommendations, reviews, and competitive pricing are pivotal in their decision-making.
Emerging technologies and the right to repair
This dynamic is underscored by the introduction of Canada’s right to repair framework, Bill C-244 and Bill C-294. This historic legislation provides independent vehicle maintenance and repair shops with access to vehicle diagnostic data so consumers can choose where their vehicles are serviced. The passage of Bill C-244 and C-294 is reshaping the market, fostering competition, and giving consumers more affordable and accessible repair options.
Moreover, the growing support for telematics systems, which provide independent shops with access to critical vehicle data, signals a shift towards a more open and consumer-friendly market. These developments enhance competition and drive innovation across the sector by levelling the playing field and offering more value-driven solutions to Canadian drivers.
The Canadian auto care sector’s resilience and adaptability reflect its essential role in the economy and its commitment to meeting the needs of a rapidly changing world. As the industry continues to evolve, it is clear that businesses embracing these shifts will not only thrive but also shape the future of auto care in Canada.
The Outlook Study, edition 2024-2025, and Data Visualization Tool 3.0 provide in depth insight into the Canadian auto care sector. It is exclusive to AIA Canada members. Login to your AIA Canada account and get your copy of the Outlook Study Edition 2024-2025 today.