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Rentability and digitalisation: trends and challenges in the Spanish aftermarket

Trends

July 19, 2023

9 MIN of Reading

Tips4y marketing team regularly monitors the Spanish aftermarket, given our geographical proximity, in order to analyse the impact of the main trends and how professionals are preparing for future challenges.

In this way we share two topics of enormous relevance to the workshop market in Spain - Digitalisation and Rentability - discussed in different contexts, but which in practice complement each other at a strategic and operational level.

THE DIGITALIZATION OF THE WORKSHOP

"The more and better digitalized workshops are more efficient and profitable."

This was the main conclusion of the Lample Convention 2023, organised by one of the leading parts distributors in the Spanish market, a member of Groupauto Unión Ibérica (GAUIb), which brought together around a hundred workshops for a working session dedicated to the current reality of the automotive aftermarket, analysing the main trends and challenges of the workshop business model.

A plan of action focused on innovation was presented to workshops, so they improve their competitive position in the market, highlighting the growing importance of digitalizing workshop processes for repair businesses.

In fact, the more digitalized workshops are more efficient and profitable, because they attract and retain more and better customers, while also sustainably improving their relationship with all other stakeholders (partners, suppliers, shareholders, etc.).

THE RENTABILITY OF THE WORKSHOP BUSINESS

"More activity does not mean more retability"

The annual meeting of the Avanza Motor gathered the 5 main representative associations of Spanish workshops: Cetraa, Conepa, Ganvam, Faconauto, and Fagenauto, with the objective of analyzing the impact of new mobility trends for the workshop of the future.

It was mentioned that the business activity in 2022 reached 2019 figures, but with a decrease in turnover due to the lack of spare parts, which resulted that the vehicle remained longer vehicle stay in the workshop, as well as in a price increase of materials and fuels.

Ganvam and Fagenauto responsibles highlighted the inability of Workshops and Networks to manage the increase in costs, namely passing them on to customers.

The conservative perspective of the sector was demonstrated in the results of the survey to 300 workshops, shared at the Avanza Motor event, where the main concern of the workshops is the technical part and only afterwards cames the focus on the customer. Last issue referred is the concern with the management of processes (including digitalization and its efficiency):

"Professionals see themselves first as mechanics,
who want to repair as many vehicles as possible,
rather than as entrepreneurs focused on making profit from the services they perform. ”
Raúl González, Communication Consultant, who presented the study

This question reinforces the message and conclusions shared in a previous article by Tips4y about the importance of digitization as an incremental factor in sales in the workshop.

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