What is the role that AIA Canada plays in the wider automotive industry in Canada?
The auto care sector in Canada contributes about CAD 37,8 billion to the entire GDP of the country.
This industry employs no less than 481,000 people, more than the agriculture or natural resources sectors, which are already massive. There are around 26,6 million vehicles registered in the country and the majority of owners choose an aftermarket shop for their maintenance repairs over dealerships or manufacturers.
AIA Canada represents all the stakeholders in the auto care supply chain: parts manufacturers, supply chain distribution outlets as well as traditional mechanical repair and collision repair retailers. For the 4,000 dealerships directly associated with a name brand OEM, there are ten times more aftermarket repair shops so our activity has a solid ground and is needed by many players of the industry. The pandemic had a negative impact on the manufacturing and sales of new cars, but we have been fortunate to be a more resilient sector thanks to the repair activities that remained a necessity even during that period of time.
Why is the link between policy and the industry important for the aftermarket sector?
Policy is vital in establishing a framework of regulations that ensures there is a competitive marketplace where the consumers are able to choose their preferred repair shops. As vehicle technology has evolved through generations, we have been at the forefront of advocating that all these changes have to be made available to aftermarket companies. All the new tools, programs and parts needed to fix a car must be shared with third parties in order to exist a balance in the market. For example, the mandatory use of the OBD port was instituted as a result of policies that started out in California. This led the automakers to start a whole series of changes in technology and approaches regarding manufacturing.
Nowadays, telematics is prompting a transformational phase in the automotive sector, with cars becoming not only computers on wheels but also acting as cell phones. The data needed to diagnose and reprogram a vehicle is now being available over the air. This is a new chapter that forms the foundation of all the advocacy and policy actions we need to take in the future in order to assure complete access to all this new info. We have found out that 84% of Canadians believe there should be legislation that guarantees the right to choose is available to them. As a result, it is vital to create a bridge between policies and automakers in order to compel them to provide all this data to third party repair shops.
What are some of the most prominent challenges the aftermarket sector is facing, especially in regards to all the latest tech advancements that have been emerging?
Labor is going to continue to be our biggest challenge, especially in relation to the rise of EVs, hydrogen and autonomous cars. The attraction, upscaling and retention of the workforce capable of fixing the cars of the future is probably going to pose some unexpected issues that we will need to work through. Moreover, Canada is set to be in need of a large influx of immigrants to replace the rapidly retiring workforce, so the next ten years will definitely keep us busy.
Through the consumer behavior studies that we conducted, we have found out that there is a lot of information in the hands of the retailer or the technician while the consumer is left out of this loop. This imbalance leads to stress related to dealing with the repair of a vehicle. As a result, we have always been advocating to empower the consumers through proper education. When taking your car for repair in Canada, there is an online diagnostic chart that mentions the severity or necessity of various interventions. In this way, a lot more transparent information can be shared between the consumer and the repairer, this leading to a higher degree of trust between the two parties.
What do you believe the future will look like for AIA Canada?
North America has a whole generation of people that made the automobile a part of their status. As I grew up, owning your own car was a sign of accomplishment and freedom, and we are still seeing this effect to this day. After a house, a car is the second largest expense a person makes, so it is natural that cars have become the passion of many individuals. On top of all of these, this industry attracts a large number of people as there is a high monetary value linked to it.
Our journey to achieve a solid right to repair is probably our largest accomplishment to date. Although there is no established legislation yet in Canada, there are a lot of different bills tabled in front of the government and we have also drawn the attention of automakers who are now engaging with us in a more meaningful way. Taking all of these into consideration, we are hoping there will be a great deal of positive outcomes in the near future.
