Independent garages brace for rising costs, looking to upskill employees and pursue EV opportunities

The latest Motor Ombudsman survey of independent garages and franchise dealer workshops has revealed that rising operational costs are set to be the sector’s biggest challenge in 2025.

At TotalEnergies we are committed to supporting the industry as it faces these headwinds, while also taking steps to improve resilience and sustainability. 

Our Fit for the Future competition – the second winner of which was recently announced – has been designed to help the industry meet these challenges, with a range of prizes geared specifically to reduce costs, upgrade customer offering and reward and improve business sustainability.

The Motor Ombudsman survey gathered the views of over 100 service and repair businesses nationally, and highlighted a range of emerging issues: 

The economic environment

Interest rates, rising employment costs and taxes are all increasing the cost of doing business, while simultaneously leading customers to think twice about spending on repairs and maintenance. 

• Rising operational costs, taxes and utility bills, are set to be the biggest operational challenge for 89% of vehicle repairers this year, up from 75% in 2024.
• 56% of businesses surveyed said customers are putting off essential repairs. 
• As consumer spending power reduces, 68% of respondents said that their customers are keeping cars for longer. In some cases, this may provide opportunities for repeat work. 

As the UK’s car parc ages, good maintenance is essential. This begins with effective lubrication practice to extend engine lifespans.

At the same time, workshops are looking to implement ‘circular economy’ practices both in terms of product selection, and business operations. 

• Discover how the Fit for the Future Quartz package helps drive efficient and sustainable motoring while supporting circularity and waste reduction. 

Investing in skills and customer experience

Despite the challenging economic environment, many garages and workshops are looking at targeted investments to improve their customer offering and long-term competitiveness. 

• 42% of businesses surveyed are looking to refurbish existing premises, to improve the look and feel of service and repair experience. 
• 21%, meanwhile, are looking to participate in webinars and training courses in 2025 to learn about how they can improve their business operations. 
• Discover how the Fit for the Future EV package supports workshops to upskill technicians and provide new on-site solutions to continue meeting the changing needs of customers

Transition to new energies

Even with looming 2030 targets, the take up of EVs by consumers remains relatively flat. Only around 4% of cars on UK roads are EVs, while recent data suggests that BEV sales target set by government was missed last year. For workshops, this means continuing to focus on servicing today’s majority ICE fleet to ensure safety, efficiency and performance – contributing to lowering the environmental impact of motoring overall – while at the same time putting plans in place to meet the needs of alternative fuelled vehicles as volumes increase.

• Fewer businesses now think EVs will provide less, rather than more, scope for additional revenue opportunities – 21%, down from 32% in 2023 – potentially indicating increased capacity and appetite in the market to service alternative fuelled vehicles
• The survey also highlighted that 39% of businesses are looking to invest in the recruitment of qualified / experienced technicians. With a widely reported shortfall of EV technicians this is likely to include a mix of traditional skills as well as electrical capabilities 
• Discover how the Fit for the Future Energy and EV packages equip garages to reduce the cost of transitioning to renewable energy, cut bills, and deliver more environmentally friendly services to customers

Although businesses have shared concerns about the combination of rising operational costs; drivers putting off repairs; and a continued talent and skills shortage – there is clearly a strong appetite not only to service existing customer needs, but to upskill, adapt and expand business offerings for a sustainable future of mobility. This is a vision that TotalEnergies is pleased to support, not least through our Fit for the Future programme.