Canadian Auto Service Market Declines

By Staff Writer September 11, 2023

Canada’s auto service market is declining to a pre-pandemic level of $9.1 billion this year, down from $10.9 billion in 2022, according to the J.D. Power 2023 Canada Customer Service Index—Long-Term Study. The study, which measures usage and satisfaction of service shops for vehicles that are 4 to 12 years old, also finds that customers in Canada are paying more for maintenance and repair work than a year ago.

According to the study, the average cost per visit at a dealership is $432, up from $394 in 2022, while the average cost per visit at an independent shop is $262, an increase of $15 from a year ago.

“Inflation has certainly had an effect on automotive service,” said J.D. Ney, automotive practice lead at J.D. Power Canada. “Average spend per service visit is up year over year at both dealerships and aftermarket facilities—yet the number of service visits is down. While the pandemic caused a decline in service visits and revenue, the market has rebounded strongly. Now, we’re seeing a return to pre-pandemic levels for service on 4- to 12-year-old vehicles.”

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Last modified on Wednesday, 13 September 2023 11:20