While new registrations rose by 12% to exceed 1million in 2001, multiple ownership increased to the point where 27% of UK households now have at least two cars - have external influences been positive for the car servicing and repairs market?

Are consumers seeking high quality service or value for money when servicing their car?

Although the failure rate for cars and light vans is steadily falling - 31.7% of cars tested in 2000 compared with 37% in 1995 - why is the MOT revenue for cars increasing?

While new registrations rose by 12% to exceed 1million in 2001, multiple ownership increased to the point where 27% of UK households now have at least two cars - have external influences been positive for the car servicing and repairs market?

Are consumers seeking high quality service or value for money when servicing their car?

Although the failure rate for cars and light vans is steadily falling - 31.7% of cars tested in 2000 compared with 37% in 1995 - why is the MOT revenue for cars increasing?

Mintel last reported on the related markets of car servicing and MOT testing in Market Intelligence, February 2000. The previous report showed that servicing requirements have become more complex as a result of more sophisticated features being fitted to new cars, especially in the area of electronics. Clearly, that trend has continued and militates still further against the DIY servicing motorist. In addition, greater general reliability and extended warranties have tended to increase the time that elapses between services - although these factors have been partially offset by higher labour and parts costs. This is particularly true of integrated systems requiring complete replacement rather than repair.

While the more reputable garages have tried to improve the public's perception of the integrity of those involved in car servicing and repairs, it is still the case that consumers are suspicious of the industry as a whole. According to Mintel's exclusive consumer research - detailed in The Consumer section - the tendency is for the motorist to seek reliability in servicing and this, in turn, tends to favour main dealers or places of original purchase.

Mintel's previous report indicated that the EU block exemption arrangements were due to expire in September 2002, but that it was too early to assess the effect of this development since EC proposals were then unclear. This is no longer the case and this report will investigate how increased competition within the car sales and servicing market could affect the servicing sector, based on the hypothesis that: "consumers, offered genuine choice, may increasingly shop around for the best servicing deals even though, in practice, this may still mean the main franchised dealers or the point of original purchase."

Although this report is essentially concerned with developments during the past two years, changes in the block exemption are of such potential significance that their effects will be assessed throughout the report where relevant.

Other Mintel reports of relevance to this market include:

Car and Van Hire, Market Intelligence - UK Report, December 2001.

Tyres, Market Intelligence - UK Report, December 2001

Car Aftermarket - Small Parts, Market Intelligence, July 2001

Car Finance, Financial Intelligence, May 2001.