This report was prepared by the Automotive Refinisher magazine.
The local economy has taken a serious hit over the last year which is placing huge strain across all industries. Insurers are still writing off vehicles at 60%.
Trends
Mazda SA has taken a stance to do away with the bodyshop approvals programme and allow the already approved shops of CRA and SAMBRA to be able to repair their vehicles as they have
already met the standards.
Specific bodyshop trends
Repairer profits are very low and they are looking at ways of increasing their volume and productivity in their shops. There is still a tendency to replace instead of repair as OEMs push their
programs for parts sales.
Challenges/opportunities facing collision repair market
Insurers are still being dogmatic and inflexible on rates when dealing with collision repairers as well as paying low labour rates. They are still taking money away in percentages off parts and other interesting ways they can think of.
Vehicle manufacturer involvement in the sector
There is little to no influence from vehicle manaufacturers, apart from their approved bodyshop programs.
Standards currently in operation within the sector
Associations, SAIA and DTI are busy developing an industry standard that will be adhered to as a procurement principle for insurers.
Impact of new vehicle technology on the sector
We still have a shortage of artisans and our qualified people are growing in age. OEM approved independent shops gain access to the warranty market and some of the smaller players can’t keep
up with investments, technology and skills needed to repair these vehicles.
Skills and training
Skills and training is a major problem with school leavers not attracted to the trades. Motor body repairers will have to make a special effort in getting new blood into the market and there is a serious need for skilled and trained new artisans in the trade. Skills of the current tradesmen is good, however it is not being passed on to the newer generation. We do have some ingenious smaller training facilities springing up and filling the gaps of recruiting the correct people for the industry. They are in the fledgling state, but are making slow progress in the right direction.
Trends/developments over the next three to five years?
In the near future we will see how new franchise options have been accepted in the country as well as any new training initiatives.
FACTS & FIGURES
Population 56.52 million (2017)
GDP US$280.37bn
Number of people who hold a full driving licence 11,737,891 (Feb 2016)
Total vehicle parc Between 10-11 million
Average vehicle age: 13 years
Total new road vehicle sales
2015 – 618,000
2016 – 547,174
2017 – 557,586
Top three motor manufacturer brands by volume sold (2017)
1. Volkswagen
2. Toyota
3. Mercedes-Benz
Top three models sold (2017)
1. Toyota Hilux
2. Ford Ranger
3. Polo Vivo
Number of motor insurers 25
Top three motor insurers by number of vehicles insured
1. Santam
2. Hollard
3. Mutual & Federal
Average motor insurance premium and excess/deductible R800 – R1,200 per month, excess varies depending on the insurance policy taken. Excess can be R2,000 – R5,000 or more.
Number of reported road collisions per annum: Approximately 14,500
Number of collision repairs per annum: Approximately 1,000 per month
Number of vehicle write-offs per annum: 47% (Code 2 – second hand), 29% (Code 3 – involved in an accident and declared unfit for use. Can be rebuilt but will still reflect as a code 3)
Total accident repair market value R18bn
Insurance approved collision repair networks in operation No
Insurance owned collision centres in operation No
Vehicle manufacturer approved collision networks in operation Yes
Vehicle manufacturer owned collision networks in operation No
Accident management companies active within market Yes
Accident management company approved collision repair networks in operation Yes
Total number of collision repair operators Formal bodyshops approximately 2,500, informal body shops approximately 1,500
Number of collision repair centres Approximately 3,900
Types of collision repair centres
Independents: Yes
Dealer: Yes
Networks: Yes
Group/multi-site operators (MSO): Yes
Franchise operators: Yes
Largest operators by number of sites
1. CRC – 80
2. Automagic – 40
3. Dent Doctor – 30
Average cost of repair R20,000 – R28,000
Average key-to-key time 1-3 weeks
Average labour rate R280 an hour
Mobile collision repairers in operation No
Mobile SMART repairers in operation Yes
Number of mobile SMART repair operators 200