NETHERLANDS
The market in the Netherlands seems far less volatile than Australia, there's a strong dealership presence in the Dutch marketplace. This report was prepared by Aftersales Magazine
MARKET OVERVIEW
Challenges/opportunities facing collision repair market
Higher repair costs because of rising parts replacement (ADAS). Also price pressures by fleet owners/leasing companies.
Market trends
Specialising in car brands by technical expertise.
Specific bodyshop trends
Bodyshop numbers are currently stable with a greater marketshare held by the groups. Insurer influence on the repair sector and impact on supply chain relationships Insurers are influencing quality standards and partly price pressure.
Vehicle manufacturer involvement/influence on the sector
At present, this is not really an issue.
Impact of new vehicle technology on the sector
ADAS and alternatives for welding have their impact, of course, but most repairers are well trained.
Repair technology influence within the market
No real issues here as most repairers invest in the new technologies.
Skills and employment
It’s not the skills but more the low amount of younger people that enter the market that is of great concern.
Trends/developments over the next three to five years?
More crash repair companies owned by dealer groups, continued consolidation and changes within parts distribution/pricing.
FACTS & FIGURES
Population 17.2 million
GDP €702bn
Number of people who hold a full driving licence 10.6 million
Total vehicle parc 9.3 million including 923,000 light commercial vehicles
Average vehicle age 10.2 years
Total new road vehicle sales
2015 – 448,931
2016 – 383,825
2017 – 418,361
Number of alternative fuel vehicles registered
2015 – 9.1% of passenger cars
2016 – 9.2% of passenger cars
2017 – 9.3% 0f passenger cars
Top three motor manufacturer brands by volume sold (2017)
1. Volkswagen
2. Renault
3. Opel
Top three models sold (2017)
1. Renault Clio
2. Volkswagen Up
3. Volkswagen Golf
Top three motor insurers by number of vehicles insured
1. Achmea
2. ASR
3. Nationale Nederlanden
Average motor insurance premium and excess/deductible €620
Number of reported road collisions per annum: 115,000 on highways
Number of collision repairs per annum: Officially calculated at 780,000 plus estimated others 1.2 million
Total accident repair market value €1.5bn
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 No
Total number of collision repair operators 2,000
Number of collision repair centres 1,220
PORTUGAL
Insurer owned shops are on the rise in Portugal where there are no MSOs. This report is prepared by ANECRA – Associação Nacional das Empresasdo Comércio e da Reparação Automóvel.
MARKET OVERVIEW
Challenges/opportunities facing collision repair market
There are pressures from insurers on bodyshops to reduce repair costs and profit margins, whilst insurance owned bodyshops in bigger cities are increasing their marketshare. Technically, new car materials and safety systems are proving a challenge to the sector.
Bodyshop trends
As yet there has been no consolidation in bodyshops with the majority remaining small, family run companies. Despite small growth in market value and the increase in the number of car accidents, there are still too many bodyshops. There have been no changes in the shape of the market/accident profile. The major change has been the increasing market share of insurance owned bodyshops.
Bodyshop numbers will continue to decrease but at a low rate. There are still no multi-site operators/bodyshop networks in Portugal. Car dealer groups and insurers continue to control the collision repair market.
Insurer influence on the repair sector and impact on supply chain relationships
Insurer owned bodyshops are increasing their marketshare whilst independent bodyshops, even those which have contracts with insurers, are at a disadvantage. Insurers want to control the parts supply to the bodyshops in terms of suppliers and prices, and the lack of MSOs and bodyshop networks will continue to be an advantage for insurers in the negotiation process.
Vehicle manufacturer involvement in the sector
Vehicle manufacturers don’t have a great influence in the collision repair sector. For the time being they haven’t been able to attract business in a large scale to their authorised repair bodyshops. Some manufacturers try to offer special conditions to avoid write-offs.
Standards
The standard that insurers demand from independent bodyshops that belong to the recommended programme is Centro Zaragoza. Some insurance companies are demanding a higher level (four or five stars) for these bodyshops. Manufacturers’ authorised bodyshops have to comply with their own standards. Some makes have specific collision repairs standards. ISO 9001 is the more common standard.
Impact of new vehicle technology on the sector
For independent bodyshops this is a huge challenge. Small profit margins create difficulties to invest in equipment and training. And there are also problems to get technical repair data, especiallyfor the most recent vehicles. Even for dealer bodyshops it’s very difficult to get the return from these investments.
Repair technology influence within the market
The independent bodyshops are adapting to the changes in vehicles and trying to keep pace whilst dealer bodyshops must make the necessary investments to comply with the manufacturers’ standards.
Skills and employment
There is a great need for skilled technicians. This problem is getting more serious as younger generations don’t think auto repair is a desirable profession and the older generation begins to retire. The new technologies and materials used in vehicles will require more training for the current staff, but low profit margins make it difficult to invest.
Trends/developments over the next three to five years?
The collision repair market is stable and we don’t expect great changes immediately. Insurers’ influence and technology developments will be the bigger challenges in the coming years. It will mean great investments and there’s always the possibility of an increase in the number of write-offs due to the higher cost of repairs.
FACTS & FIGURES
Population 10,236,934 (www.countrymeters.info 2018)
GDP €193,048,635,000 (Pordata 2017)
Number of people who hold a full driving licence
6,430,000 (IMT 2013)
Total vehicle parc 7,349,605 (APS 2017)
Average vehicle age 12.5 years (APA 2017)
Total new road vehicle sales
2015 – 213,645
2016 – 247,393
2017 – 266,385
(ANECRA)
Number of alternative fuel vehicles registered (electrical
vehicles sales)
2015 – 645
2016 – 756
2017 – 1,640
(ANECRA)
Top three motor manufacturer brands by volume sold (2017)
1. Renault
2. Peugeot
3. Volkswagen
Top three models sold (2017)
1. Renault Clio
2. Peugeot 208
3. Renault Mégane
Number of motor insurers 20 (ASF 2017)
Top three motor insurers by number of vehicles insured
1. Fidelidade
2. Seguradoras Unidas
3. Ageas
(ASF 2017)
Average motor insurance premium and excess/deductible €226.30 (ANECRA/ASF 2017)
Number of reported road collisions per annum 906,000 (ANECRA 2017)
Total accident repair market value €1.2bn (ANECRA 2017)
Insurance approved collision repair networks in operation Yes
Insurance owned collision centres in operation Yes
Vehicle manufacturer approved collision networks operating No
Vehicle manufacturer owned collision networks in operation No
Accident management companies active within market No