Automotive Maintenance Business Withdrawals Hit Record High Amid Labor Shortages, Highlighting Challenges in Maintaining Infrastructure for Vehicle Safety

Teikoku Databank, Ltd. has conducted an investigation and analysis of the status of bankruptcies, business suspensions, and dissolutions in the "automotive maintenance industry."

SUMMARY

The market withdrawal of businesses providing automotive maintenance is accelerating. In the first half of 2026 (January-June 2026), there were 259 cases of business suspensions, dissolutions, and closures (withdrawals) among "automotive maintenance" businesses. This represents an increase of approximately 40% from the same period last year (186 cases) and marks a new record high. Including the 36 bankruptcies (with liabilities of 10 million yen or more, under legal proceedings), a total of 295 businesses withdrew from the automotive maintenance sector in the first half of the year, the highest number ever recorded.

[Notes]

"Automotive maintenance industry": Refers to automotive maintenance businesses such as "general maintenance" and "body repair" in TDB's detailed industry classification.

Bankruptcy: Bankruptcy due to liabilities of 10 million yen or more and legal proceedings.

Business suspension/dissolution: Confirmation of a state where corporate activities have ceased without specific procedures (business suspension/dissolution), or confirmation of dissolution through commercial registration, etc. (excluding "deemed dissolution"). (Business suspension/dissolution excludes bankruptcies under legal proceedings).

Collection period: April 1, 2000, to June 30, 2026.

Automotive maintenance withdrawals hit record high amid clear struggles with "labor shortages"

The market withdrawal of businesses providing automotive maintenance is accelerating. In the first half of 2026 (January-June 2026), there were 259 cases of business suspensions, dissolutions, and closures (withdrawals) among "automotive maintenance" businesses. This represents an increase of approximately 40% from the same period last year (186 cases) and marks a new record high. Including the 36 bankruptcies (with liabilities of 10 million yen or more, under legal proceedings), a total of 295 businesses withdrew from the automotive maintenance sector in the first half of the year, the highest number ever recorded.

Looking at automotive maintenance businesses that went bankrupt or suspended/dissolved operations (withdrew) in 2026, those with capital of "less than 10 million yen (10-100 million yen)" accounted for 115 cases, the largest proportion at approximately 40% of the total. When combined with those under "1 million yen" (107 cases, 38.4%), including sole proprietors, small-scale automotive maintenance businesses accounted for 80% of the withdrawals.

In recent years, the automotive maintenance sector has faced rising prices for many necessary materials, including parts, oils, lubricants, and paints. Furthermore, the standardization of vehicle inspections and general maintenance, coupled with a trend towards saving money due to high prices, has led to an increase in cases where car owners postpone repairs or limit them to the bare minimum. This, along with price competition from dealerships, car accessory stores, and specialized inspection shops, has created a challenging business environment. Despite these difficulties, there has been a tailwind for the automotive maintenance industry as the overall cost of vehicle repairs, including labor, paid by insurance companies has been rising, allowing maintenance businesses to pass on increased costs to prices. Consequently, some "automotive maintenance" businesses, particularly those that can handle specialized tasks or advanced procedures like "aiming" (electronic equipment calibration) which dealerships may not be able to accommodate, have increased their labor charges and improved profitability.

On the other hand, the retirement of veteran staff due to aging and a decrease in young people aspiring to become mechanics have made it difficult to secure mechanics and painters. This has led to a decline in maintenance capacity, with some businesses having to limit the number of vehicles they can accept. Additionally, with the electrification of vehicles and the increasing sophistication of systems like Advanced Driver-Assistance Systems (ADAS), many small-scale, family-run businesses lack the "personnel and equipment to handle new technologies." These small, local automotive maintenance shops are often in a structural disadvantage, struggling to negotiate price increases or secure adequate unit prices from insurance companies and customers, leading to unprofitable operations.

Currently, as vehicle sophistication increases, the difficulty of maintenance work is rising. It is expected that the exit of small-scale maintenance garages, which find it difficult to invest in equipment and secure personnel, will continue as the industry consolidates towards medium-to-large businesses capable of handling these demands. However, even for minor repairs like a burnt-out bulb, there are reports of "not enough staff to handle the workload," leading to long waiting times for maintenance at car accessory stores and dealerships. With the acceleration of withdrawals in the automotive maintenance sector, the discussion on how to maintain the regional infrastructure that guarantees vehicle safety is urgently needed urgently.