Oshawa’s GM sixth in J.D. Power service satisfaction study; Lexus and VW tied in first
Published September 11, 2023 at 10:00 am
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Canada’s auto service market is declining to a pre-pandemic level of $9.1 billion this year, down nearly $2 billion from 2022’s $10.9 billion, according to the J.D. Power 2023 Canada Customer Service Index—Long-Term study released Thursday.
Lexus and Volkswagen dealerships were tied in first in the dealership segment, each with a score of 842. Toyota (815) ranks third, followed by Mazda (813) and Mercedes-Benz (811). General Motors finished sixth in the rankings with a score of 807, still well above the segment average of 799 (out of a possible 1,000).
The study, which measures usage and satisfaction of service shops for vehicles that are four to 12 years old, also finds that customers in Canada are paying more for maintenance and repair work than a year ago.
According to the study, the average cost per visit at a dealership is $432, up from $394 in 2022, while the average cost per visit at an independent shop is $262, an increase of $15 from a year ago.
“Inflation has certainly had an effect on automotive service,” said J.D. Ney, automotive practice lead at J.D. Power Canada. “Average spend per service visit is up year over year at both dealerships and aftermarket facilities—yet the number of service visits is down. While the pandemic caused a decline in service visits and revenue, the market has rebounded strongly. Now, we’re seeing a return to pre-pandemic levels for service on four- to 12-year-old vehicles.”
The dealership service segment continues to expand its market share this year at the expense of the aftermarket sector, both in terms of revenue and number of service visits. Of the $9.1 billion total market revenue this year, dealerships have grown their overall share of the market to 61 per cent in 2023 from 58 per cent in 2022. Those incremental three percentage points of market share translates to more than $250 million in revenue. Concurrently, dealerships also have experienced an increase in the number of average annual visits to 1.7 from 1.5 a year ago.
The study also found that aftermarket facilities continue to outperform dealerships. Aftermarket facilities correctly complete service work the first time 95 per cent of the time – unchanged from 2022 – while dealers’ success rate is at 93 per cent revealing a continuing decline from 2022 (94 per cent) and 2021 (96 per cent).
Jiffy Lube ranks highest in the aftermarket service segment, with a score of 818. Great Canadian Oil Change (809) ranks second.
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