Auto Repair Shops NAICS 811111

Apr 30, 2025 - Mobile EV Repair a Growing Industry Niche

• Sales of electric vehicles (EVs) in the US are boosting demand for mobile repair services where technicians come to the cars. Kelly Blue Book reports that automakers sold 300,000 EVs in Q1 2025, an 11.4% jump year over year. EVs now account for 7.5% of all new vehicles sold in the US. With the change in the vehicle mix on the road comes change with maintenance, and mobile EV repair services provide auto repair shops with a growing consumer base while avoiding overhead costs associated with maintaining a physical repair shop location. With lower costs at the shop level, repairs should be cheaper for the consumer as well. Mobile EV repair services are also more environmentally friendly since it cuts down on back and forth trips to a physical garage, a perk that appeals to the already climate-conscious consumer who bought an EV in the first place.
• Employment as an automotive technician grew 5% in 2023 over pre-pandemic levels, according to TechForce’s latest Supply & Demand Report, with new students increasingly entering a field in the midst of a labor shortage. As automobiles become more electrified and controlled by on-board computer systems, the profession has broadened its appeal as a high-tech field with a skillset that can later be transferred into other mechanical applications like diesel vehicles and wind turbines. It is good news for an industry that TechForce estimates will need to have one million technicians in the next five years to keep up with demand (the number sits at 794,000 per TechForce). The amount of technical skills required to repair modern cars is also helping to boost wages. The average hourly salary was $28.93 in January 2025, according to the US Bureau of Labor, a 5.4% year over year bump.

• Prices for automotive repair services steadily increased throughout 2024 to end the year up 6% - per the US Bureau of Labor Statistics - and could go even higher with the Trump administration slapping a 25% tariff on all imported cars and auto parts. Scheduled to take effect on April 2, steep tariffs on auto parts - including engines, powertrain parts, and electrical components - will increase prices for auto repair and maintenance, according to experts at automotive resource company Edmunds. The problem could be exacerbated if car insurance rates - already historically high - go up even further. Insurance rates are often tied to a vehicle’s repair expenses and replacement cost. If repair costs go up, so will insurance rates to compensate for increased policy payouts.
• The increasing technical complexity of new automobiles is adding time and costs to auto repairs, according to automotive software maker Mitchell International. Overall auto accident insurance claims were down last year due to a milder winter with less hazardous conditions and the growing use of collision avoidance systems in cars. Volume might be down, but total loss claim volume has risen because cars are becoming harder to repair as they age and this can force consumers back into the market if repairs prove too costly. Today’s cars are a complicated mixture of components such as aluminum, composite materials, small individual parts, and technology systems. According to Mitchell, repair claims that need replacement parts grew in the US by 15% from 2019-2024, and now parts account for 51% of repair costs.