SA motor body repair industry under strain as cars become more complicated, costly to fix

South Africa’s post-collision repair sector is entering a period of structural strain that could have far-reaching implications for insurers, manufacturers and consumers alike.

That's the warning from the South African Motor Body Repairers’ Association (SAMBRA)

The body says that sustained economic pressure on small and medium-sized motor body repairers (MBRs) is beginning to erode the foundations of the country’s automotive repair ecosystem.

While most of these businesses are independent micro and small enterprises, they are required to make significant capital investments in equipment, training and compliance to meet modern Original Equipment Manufacturers (OEM) standards, explains Juan Hanekom, national director of SAMBRA.

At the same time they operate in an environment of increasing cost containment and margin compression, he says, which is the gap where the pressure is intensifying.

The reality is that modern cars have evolved dramatically, and new energy vehicle technologies have transformed what was once a largely mechanical repair function, into a "highly technical, calibration-intensive discipline".

"Correct repair now demands specialised tooling, continuous upskilling, dedicated infrastructure and strict adherence to manufacturer protocols. The technical threshold continues to rise, but the economic model underpinning repairs has not always evolved at the same pace."

For small businesses, this creates a sustainability challenge, Hanekom says in conversation with Stephen Grootes.

"Technology has taken leaps and bounds over the last couple years, looking at a car now versus what it was 10-20 years ago. Take something as simple as a headlight which used to be a reflector, a bulb and a lens - now it's a complicated piece of electronic equipment, virtually a computer in its own right!"

Hanekom says they see knowledge gaps reflected even in the curricula they teach to up-and-coming artisans.

The economic model of the smaller shops is just no longer serving them, he reiterates.

"You're paying for the time the guy's swinging the spanner or using the hammer so to speak, but the industry itself is trying to catch up. .Economic pressures play a role in this, based on the economic model."

"A shop at the end of the day has to invest to try and keep up to date, keep their technicians trained, educate the people that need to be educated and buy the equipment they need to work on these complicated machines."

SAMBRA has called for greater alignment across what it terms the industry’s “sustainability triangle” – repairers, OEMs and insurers.

“It is only when industry comes together and acknowledges its role in the challenges the interdependent value chain are facing, that meaningful and sustainable solutions can be found,” Hanekom says.