Auto Repair Shops

The 79,429 automobile repair shops in the US fix cars with mechanical problems or restore a vehicle after a collision. The automobile repair industry is highly fragmented. Most out-of-warranty vehicles are repaired at independent shops. A vast majority of independent service shops are family-owned.

Declining Collision Sector

Once a highly-profitable segment, the collision and body repair sector is in what some industry experts have termed “irrevocable decline.

Competition from Dealers

Car dealerships are increasing their efforts to service and repair vehicles of all types.

Aug 25, 2026 - Canada Tariffs Could Make Car Repairs More Expensive

• The US trade fight with Canada could raise costs and create new sourcing headaches for auto repair shops, which depend on a parts supply chain that routinely crosses borders. Proposed 50% tariffs on Canadian auto parts and steel could make some replacement components more expensive, with distributors and manufacturers likely to pass at least part of those costs downstream. The bigger headache may be the unpredictability. Tariffs have been announced, delayed, revised, and threatened again, making it harder for suppliers to set prices and repair shops to know what parts will cost from one month to the next. Higher new vehicle prices could provide a counterweight by encouraging drivers to keep older cars longer, supporting demand for maintenance and mechanical repairs. But those aging vehicles also need more parts, and shops could find themselves busier while dealing with higher component costs, uneven availability, and customers already sensitive to repair bills.
• As cars become more like computers on wheels, independent auto repair shops will need to become software specialists as much as mechanics. Software-defined vehicles from companies such as Tesla and Rivian rely on proprietary operating systems, sophisticated diagnostics and over-the-air updates, raising questions about who will be able to repair them as they age. That matters as the average US vehicle is now 12.8 years old, while Rivian says it designs its hardware to accommodate roughly seven to 10 years of new software features. Shops that want to service these vehicles will face added costs for training, diagnostic tools and access to manufacturer data, while some repairs may remain tied to automakers. Right-to-repair efforts could open the door wider: Rivian recently made its repair and diagnostic information available to independent shops through ALLDATA and plans to give owners greater access to onboard service tools.
• Auto repair shops may soon see more consistency in the vehicles coming through their bays as automakers standardize more components across their model lineups. Volkswagen recently said it plans to cut its global model lineup by as much as 50% and reduce product variants by 75% by 2030, while Ford, Stellantis, Nissan, and others are expanding modular vehicle platforms that share engines, suspension components, electronics, and other parts across multiple models. According to Business Insider, Volkswagen has already built more than 32 million vehicles on its MQB platform alone. For independent repair shops, greater parts commonality could improve parts availability, simplify technician training, and reduce the number of unique repair procedures technicians need to master. Shops that invest in servicing these increasingly standardized platforms may also benefit from faster turnaround times and more efficient inventory management as the vehicle fleet gradually evolves.
• The automotive right-to-repair debate has gained momentum as lawmakers and industry groups push to expand independent access to vehicle data needed to repair increasingly connected vehicles. In 2026, the federal government began reviewing policies that could make it easier for consumers and independent shops to access repair information and aftermarket parts. Congress advanced legislation that would codify key elements of existing voluntary repair agreements between automakers and the indie repair industry. Meanwhile, Massachusetts remains the focal point of a legal battle over access to vehicle telematics data after a federal court upheld the state's landmark right-to-repair law. Automakers argue that limits on access are necessary to protect cybersecurity, privacy, and vehicle safety, while independent repairers contend that broader access is essential to preserve competition and consumer choice. As software, over-the-air updates, and advanced driver-assistance systems become standard, the outcome of these legal and regulatory efforts will reshape the automotive aftermarket.

Industry size & Structure

The average auto repair shop has about 5 employees and generates $901,420 in annual revenue.

• The automobile repair industry includes about 79,430 firms that employ 385,540 workers and generate $71.6 billion in annual sales.
• The auto repair industry is separate from dealerships that provide repair services as well as the aftermarket industry, which manufactures and supplies components for vehicle repair.
• The automobile repair industry is highly fragmented. A vast majority of independent service shops are family-owned.
• The average car is 12.8 years old. A shift toward older vehicles tends to benefit the auto repair industry, as it indicates customers are more likely to take them to a mechanic for service.
• Many independent mechanics are closed on the weekends, hindering competition with car dealerships that operate on Saturdays. Mechanics work an average of 40 hours a week.
• The largest auto repair companies in the US are Meineke/Maaco, Midas, Monro, and Precision Tune Auto Care.