By Emily Holtby
Canada’s independent auto care businesses face a structural disadvantage. Modern vehicles generate vast amounts of data, yet automakers control the diagnostic and repair information required to service them. Without legislated Right to Repair protections, independent shops cannot compete on equal footing.
This is not only a consumer issue; the absence of cohesive Right to Repair legislation affects shop owners, parts suppliers, distributors, and the broader auto care supply chain.
The Competition Bureau of Canada’s report, Your Data, Your Control, underscores a clear principle: improved data portability strengthens competition. In sectors such as insurance, greater data access can lower barriers to entry and drive significant savings. The auto care sector is no different. When access to vehicle data is restricted, market participation narrows and competition suffers.
Measurable Economic Impact
Independent repair facilities represent about 80 per cent of Canada’s repair market, within a sector that contributes $44 billion annually and supports more than 500,000 jobs.
When businesses lose access to essential repair data, the impact is immediate. MNP research shows that losing just one repair per week due to data restrictions can reduce annual profits by 16 per cent for rural shops and 9 per cent for urban facilities, resulting in an estimated $336 million in lost profits nationwide each year.
For small businesses operating on tight margins, this revenue loss limits hiring and reinvestment, particularly in rural communities where repair shops are key local employers.
Supply chain and community effects
The impact extends beyond individual shops. Reduced repair volume affects parts suppliers, warehouse distributors, equipment providers, and service networks. A constrained aftermarket weakens competition across the entire automotive ecosystem and concentrates market power in fewer hands. Over time, diminished competition leads to reduced innovation, higher costs, and fewer business opportunities for Canadian entrepreneurs.
Industry advocacy and the path forward
Recognizing these risks, members of AIA Canada returned to Parliament Hill in February 2026 to meet with federal decision-makers and advocate for national Right to Repair legislation. Their objective is clear: establish a secure, legislated framework that guarantees independent businesses access to vehicle data, tools, and parts.
Right to Repair is about preserving fair competition, protecting local employment, and sustaining a $44 billion sector of Canada’s economy. Without legislative action, the competitive imbalance will continue to widen. To learn more about the economic impact of Right to Repair, visit righttorepair.ca.
Picture credit : iStock
