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As the automotive world keeps evolving in machinery and technology, the competition for auto repair shops has risen. Whether it's dealerships, mobile mechanics, or specialty shops, there’s cut-throat competition in the market. It affects a customer’s perception of what the best service provider is for their car.
Customers these days expect more than just looking under their hoods; they want transparency, honest communication, and reliable expertise.
Also, shops are faced with a multitude of challenges on a day to day basis. Be it parts shortage, labor limitations, or the influx of paperwork to file. These issues require more than just technical skills to overcome.
You need strategic thinking and modern tools to resolve these challenges.
The daily grind is not the same anymore. Customers can now easily find a new replacement for their garage online. Besides, there are other challenges prevailing in the automotive industry affecting the businesses:
Recent policy changes are one of the main root causes behind the disruption in the automotive industry. The dramatic 25% increase in tariffs on imports is slowing down the automotive supply chain.
But with 90% exports going to the US, several manufacturers such as BMW, Ford, and Volkswagen have operating plants in Mexico, resulting in a change in production strategies. This could also affect the availability of inventory in stores and the parts reordering.
How many times have you suffered a headache due to duplicate data entries? This duplicate data within your accounting is like cancer, which keeps on spreading unless you switch to automation. This is where many shops are switching to a modern shop management system that helps with all customer data tracking. Without this, garages commonly face inconsistencies in data and human errors.
When data entry is automated, shops can eliminate human error and make the reporting process easier. So the next time a customer comes around and you’re unsure of their service history, you can easily pull that data up on the software dashboard.
A smart car sounds good to your ears, eh? But what if your customer’s data is compromised because of the advanced technologies? As a garage owner, it is your job to decode all the potential threats your client can face in case their system gets hacked. Ransomware attacks impacted the automotive industry in a way that cost $209.6 million back in 2023.
Therefore implementation of the EU’s Digital Operational Resilience ACT (DORA) in 2025 was brought to attention to focus on regulations to protect sensitive data.
Did you know that 76,000 technicians will be needed to keep up with the EVs (electric vehicles) in 2030? This puts intense pressure on the existing automotive force to become oriented with the new training. Currently, traditional repair and inspections are struggling, therefore, it’s hard to train young employees without the right technology at hand.
The smaller the garage is, the harder it becomes to hire and train the right labour. To upskill their workforce, new training programs need to be introduced. Also, launching new apprenticeship schemes can help to overcome this issue.
Besides the arising challenges, what will the rest of 2025 bring to the table? Let’s take a look at upcoming trends in the automotive industry.
It’s safe to say EV is constantly evolving. Gradually, but it is happening. The market was predicted to continue to grow to 40 million, but the pace has rather been slow. Regulations for EVs are scaling up. However, due to certain regulations, the US automotive market might see a shift back to the traditional internal combustion engine vehicles.
Also known as connected, autonomous, shared, and electric (CASE) vehicle technologies, they are a primary focus for the automotive industry.
The autonomous vehicle market is expected to grow to $13,362 billion by 2030. Drivers, including logistics and ride-sharing services, are a major part of this shift. Also, the sensor technology and connectivity are considered to improve safety and adoption towards driving patterns.
Among the tariff war and trade tensions, a new concept is emerging in the automotive market known as decentralized manufacturing.
The manufacturing hubs will produce the vehicle for the local market. Therefore, via this approach, manufacturers will be able to navigate the regulatory landscape. On the other hand, they will be reducing shipping costs and their carbon footprint.
The rise of AI is not surprising. Several auto garages are now keen on the idea of using smart software that helps improve customer experience and regulate daily tasks and workflows.
Currently, the AI integrations are focused on basic voice assistants specifically designed for garage owners. These AI agents will focus on tasks like answering customer questions, appointment booking, and improving internal processes.
As the automotive industry continues to grow, so do the challenges it brings. It’s important to embrace technology sooner rather than later to gain a competitive advantage and stay ahead in an increasingly fast-paced market.
