Fuel costs hitting small auto workshops, says Miwa
According to the Motor Industry Workshop Association (Miwa), higher fuel costs, particularly diesel, are reducing disposable income and forcing motorists to prioritise essential spending over repairs and servicing.
“Independent workshops are often the first to feel the impact when consumers are under financial pressure,” says Miwa chairman Dewald Ranft. “As fuel prices rise, motorists are forced to prioritise essential spending, and vehicle maintenance and repairs are often delayed.”
Miwa members are seeing fewer vehicles coming through their doors, particularly for non-urgent repairs and preventative maintenance. While this may provide short-term relief for consumers, it is creating longer-term risks for both vehicle owners and small businesses.
“We are seeing fewer vehicles coming through workshop doors. Delaying maintenance can lead to more serious and costly issues down the line,” Ranft says.
For many independent workshops, which operate as small and medium-sized enterprises, the decline in bookings is starting to impact sustainability. With tight margins and rising operating costs, a prolonged drop in customer volumes could place some businesses at risk.
“These are predominantly SMEs that play a critical role in local economies. If the current trend continues, we could see increased business closures and job losses,” he says.
The financial strain on consumers is also affecting insurance-related repairs, with some motorists unable to afford excess payments, resulting in delays or cancellations. This is creating knock-on effects across the automotive value chain, including parts suppliers.
“This has a ripple effect across the value chain. When essential repairs are postponed, workshops, suppliers and vehicle safety are all impacted,” Ranft adds.
With further fuel price increases expected and potential fuel levy changes ahead, pressure on both consumers and small businesses is likely to intensify.
“The expectation of additional fuel hikes will deepen the pressure on both consumers and small businesses,” Ranft says.
He notes that any measures to ease fuel costs would help stimulate demand and support SME activity in the sector.
“Support aimed at easing the burden at the pump would go a long way in supporting activity across the automotive aftermarket,” he says.
Despite the challenging environment, Ranft says independent workshops remain resilient, but warns that sustained pressure will be difficult to absorb without some relief.