CARS Executive Outlook: J.F. Champagne

CARS magazine reached out to leaders in the automotive repair and service sector of the automotive aftermarket to ask them about their thoughts about the industry over the next 12 months. How will the economy impact customer behaviour in 2025 compared to 2024? What role is technology playing in repair shops these days and how can shops use it effectively? And what could impact business the most this year — is there one key opportunity or challenge awaiting shop owners? We will present their answers in alphabetical order over the coming weeks…

You can view the full feature in the February 2025 issue.

J.F. Champagne, President  |  Automotive Industries Association of Canada

Increasing uncertainty will probably be the number one challenge as we see changes in monetary, trade and tariffs.

While inflation in Canada has eased since 2022, consumer inflation expectations remained elevated, leading to reduced spending through 2024. If we find ourselves in a trade war with the U.S., we will likely see an actual increase in inflation which will again contribute to reduced spending. A low Canadian dollar could also contribute to increased costs for repairs but also add to more domestic travel in the summer months.

Everyday repair and maintenance such as brake service and tire changes will increasingly require the use of diagnostic tools for safe and complete repair.  Like computers, they require regular software updates to remain effective and safe and shops must include this as part of the maintenance tools.

E-commerce also continues to be a key element for shops success. More customers are expecting to be able to book service online, receive an online condition report with pictures explaining the repairs needed on their vehicle and interact via email or text messages. Shops need to be able to provide these services while ensuring cybersecurity for the information of their customers.

Increasing uncertainty will probably be the No. 1 challenge as we see changes in monetary, trade and tariffs. But at the same time, the fundamentals of the auto care sector remain strong and will provide opportunities for consolidation as more people and shops choose to retire and sell their businesses.