The impact of EVs on independent repair shops

IMR Inc., an automotive market research firm, has released its latest insights on how battery electric vehicles (BEVs) and hybrid electric vehicle (HEV) service is impacting independent repair shops.

Between May 3 and June 30, IMR Inc. interviewed 1,000 independent repair shops in the U.S. to gain insight on their service of battery and hybrid electric vehicles and investment in specific tools, equipment and training for technicians to work on these newer vehicle technologies.

The following statistics are according to IMR insights:

Three out of every 100 vehicles (3.1%) serviced at an average independent repair shop are BEVs, while HEVs account for 6.2% of the vehicles serviced. Shops located in the west (7.7%) have nearly double the percentage of business from HEVs over shops located in the midwest (4.2%). Of shops that service BEVs/HEVs, almost 70% do not specifically market or advertise the service.

Of independent repair shops that service BEVs and HEVs, 89.4% have seen an increase in the number of BEVs coming in for service while 87.4% have seen an increase in HEVs coming in for service. However, among all independent repair shops, only 27.5% of shops have invested in tools and equipment to specifically service BEVs/HEVs while 30.5% of shops said they had invested in additional/specialized training for technicians, focused on electric or hybrid vehicles. Overall, larger shops (8+ bays) made more investments in tools, equipment and training (48.9%) than their smaller competitors (26.4%).

With the increasing market penetration of BEVs/HEVs and rapidly evolving technologies, independent repair shops that service these vehicles recognize the importance of keeping up with current information, IMR says. Of the shops surveyed, 46.7% reported that their primary supplier provides updates on the latest industry trends regarding BEVs/HEVs, while 53.3% of shops said theirs does not.

While 67% of independent repair shops indicate that a portion of their business comes from servicing BEVs, more than 55% of shops surveyed believe it will take over 10 years for BEVs/HEVs to impact their business. Another 13.4% of shops believe that these vehicle types will never impact their business.

BorgWarner has agreed to acquire the electric vehicle solution, smart grid and smart energy businesses of Hubei Surpass Sun Electric (SSE). The transaction has an enterprise value of up to RMB 410 million (approx. $59.36 million).

Headquartered in Xiangyang, Hubei province, China, SSE’s electrification business supplies patented electric vehicle charging solutions to customers in China and more than 70 other countries. SSE says it has delivered over 50,000 charging points and has led the engineering, procurement, and construction (EPC) of more than 250 charging station sites. SSE’s charging and electrification capabilities in China are expected to complement BorgWarner’s existing capabilities in Europe and North America, the companies say. SSE’s 2022 revenues for the electrification business are expected to be approximately RMB 180 million (approx. $26.06 million).