Japan: the IAM is growing, but manufacturers hold sway

The increasing age of the fleet, now exceeding nine years on average, is becoming a source of potential for the IAM. However, nearly 60% of maintenance and repair operations still go through dealerships, a ratio unmatched in the West. Multi-make repair networks are growing, sometimes fuelled by distributors such as SPK Corporation, a Nexus member with more than 1,000 wholesalers, or Empire Motor, but without a strategy of direct competition.

In 2025, they were reputed to have captured 30-35% of the non-warranty market, mainly in routine maintenance, general mechanics and bodywork not covered by insurance. Brands such as Yellow Hat and Autobacs Seven are reinforcing their networks, often through hybrid models combining auto-centres, workshops and digital services. But concentration remains limited: the Japanese market favours local alliances, backed by regional wholesalers or technology platforms, rather than integrated national franchises.

More than 50% of independent urban workshops now use cloud-based workshop management tools, digital quotes and online appointment booking. This transformation is helping them close the perceived gap with dealerships, which have historically been highly structured in terms of IT. Insurers and fleets are also pushing for this standardisation, favouring networks that can guarantee traceability, completion deadlines and regulatory compliance.

Bodywork alone accounts for nearly ¥4 trillion. Independent operators are gaining ground, particularly in used vehicle reconditioning, quick repairs and auto glass. Cost pressures, combined with rising parts prices (ADAS, optics, complex auto glass), are opening up opportunities for non-manufacturer networks, which are better positioned on vehicles over five years old.

With more than 45% of new sales being hybrid or electric, upskilling is becoming a key selection factor. Only networks that have invested in high-voltage training, advanced diagnostics and specific equipment can capture this flow. As a result, the market is segmented between technologically equipped players and workshops confined to old combustion engines.