A new report has warned that falling car sales could result in a £1.3bn shortfall in aftersales revenues over the next four years.
The study, carried out by REALtime Communications, found that new registrations fells by 1.8 million in the past three years and that will deprive the aftersales sector £1.3bn in service revenues alone between now and 2026.
Insights and Data Director John Law said: “We are now at a crossroads where higher volume service revenue from the scheduled third servicing of new cars sold in 2019 starts to wash through. After that, the traditional scale of activity will be impacted by the significantly reduced scale of new vehicles and the subsequent fall in the first and second servicing of cars sold during 2020 and 2021.
“The numbers evidence very clearly a significant shrinkage in aftersales revenues for the next few years. All the result of 1.8 million vehicles between one and three years old having been lost to the franchise network.”
However, the actual loss could be greater than £1.3bn, as this figure does not include missed upsell opportunities.
