Connected Aftersales: Embracing Digital Transformation in Automotive Collision Repair Services

As vehicles become increasingly connected, electric, and software-defined, the nature of automotive repair is also rapidly evolving. Collision repair plays a vital role in the automotive industry, ensuring that vehicles damaged in accidents are restored to their pre-accident condition. Collision repair is becoming faster, more accurate, and more sustainable with technological advancements and digital adoption.

Automotive workshop management software helps streamline operations for repair shops, offering features like job card management, inventory tracking, and customer communication. Disconnected and Unorganized Operations Drive the majority of Service Center Challenges.

Did you know?

As per the NHTSA Traffic Safety Facts 2022 report published in July 2024 -

• Passenger vehicles made up 92 percent of registered vehicles and accounted for 88 percent of total Vehicle Miles Travelled (VMT).
• An estimated 10,528,849 vehicles were involved in police-reported traffic crashes; 81 percent (8,564,675) were passenger vehicles.
• There were 60,501 vehicles involved in fatal traffic crashes, of which 76 percent (45,856) were passenger vehicles.

Understanding Collision and Collision Repair

When a vehicle is involved in a collision, whether it is with another car, an object, or a pedestrian, the damage often goes beyond what’s visible. Repairing that damage requires specialized skills, equipment, and precision to restore the vehicle to safe, road-ready condition. Collision repair involves a wide range of services, including addressing dented panels, cracked windshields, and frame alignment, as well as diagnostics and sensor calibration. For this, technicians rely on OEM-certified methods, digital tools, and partnerships with insurers to ensure quality and compliance. Many modern workshops are also trained to detect hidden structural damage or system failures that could affect performance or safety. These are OEM-certified collision workshops that also have partnerships with insurance companies to ensure that any work is covered.

Industry Challenges

The North American collision repair market is valued in the billions and is projected to grow at a rate of around 3-4% annually. However, it comes with many challenges like -

• Talent shortages: A growing gap exists in skilled technicians, as fewer younger workers enter the trade.
• Rising complexity: With more vehicles using ADAS, electric drivetrains, and software-defined components, repairs are no longer just mechanical.
• Fragmentation: The industry includes thousands of small, independent players operating alongside dealership service centers and franchise chains.
• Regulatory demands: Repair procedures must meet increasingly strict OEM standards and insurer guidelines.
• Changing mobility trends: The rise of ridesharing, telematics, and accident prevention tech is starting to impact collision frequency and repair volume.

To stay competitive, collision centers must modernize their operations, improve cycle times, and reevaluate their approach to delivering a customer experience, all while managing costs and labor shortages.

Industry Structure and Trends

The North American automotive collision repair market has a mix of independent repair shops, dealership-owned shops, and franchise networks. This mix of players makes the market dynamic but also fragmented. As customer expectations rise and digital tools become essential, repair centers, regardless of size, must evolve to stay competitive.

The collision repair industry, like any other industry, is driven by changes in mobility, vehicle technology, and customer behavior. As Vehicle Miles Traveled (VMT) rebounds post-pandemic, demand for repairs is returning. But this is not a return to business as usual. As the industry adapts to these challenges, several key trends and outlooks are shaping its future:

• Emphasis on Technician training and certification to ensure high-quality repair services
• Integration of advanced digital technologies like AI-driven diagnostics, augmented reality, and telematics
• Market consolidation and strategic partnerships provide more streamlined services
• Historic and predictive data analytics for data-driven decision making
• Real-time customer connect over Web, Mobile apps, and chatbots

Overall, the digital transformation in the North American automotive collision repair industry is driving greater efficiency, transparency, and customer satisfaction. Repair shops that embrace these technological advancements and adapt to changing consumer expectations will be well-positioned to succeed in the evolving market landscape.

What Repair Centers Need to Compete and How Tech Mahindra Helps

To stay competitive in a changing market, collision repair centers need more than just skilled labor and physical infrastructure. They need to become digitally enabled operations, equipped to handle the growing complexity of vehicles, customer expectations, and pressure on cycle times.

This means investing in AI-led diagnostics, real-time tracking, data-driven workflows, and user-friendly interfaces for technicians. Just as importantly, shops must find ways to connect the dots between operations, customer service, and profitability.

At Tech Mahindra, we help automotive OEMs across the globe modernize their aftersales and repair ecosystems. Our next-gen aftersales platform includes Digital service booking, Digital Inspection, Digital Job card, AI-driven repair diagnostics, AR-based remote assistance, and analytical dashboards that can improve both workshop productivity and customer experience. By combining domain expertise with digital innovation, we enable faster repairs, smarter decisions, and better outcomes for technicians, managers, and customers alike.

Conclusion

Automotive Repair centers that adopt digital tools, from AI diagnostics to AR-enabled inspections, will be better equipped to deliver faster, safer, and more personalized repair experiences. But transformation doesn’t happen in isolation. It takes the right strategy, the right partners, and a willingness to rethink how people, processes, and platforms come together.

At Tech Mahindra, we help leading automotive brands and repair networks build more innovative aftersales ecosystems, enabling them to reduce turnaround times, improve technician productivity, and enhance the customer experience.