Automotive firms feel pressure

Number of vehicle repair and maintenance companies put into liquidation more than doubles in a year.

Posted on 05 May, 2026

Automotive repair and maintenance companies have been among the hardest hit by the economic squeeze as new data shows 74 such businesses were liquidated over the past 12 months, compared with 27 for the year prior.

The findings emerge in the latest credit indicator report from Centrix, which says the sector’s numbers reflect continuing cost pressure, softer demand and weaker discretionary spending conditions.

It notes overall company liquidations rose to 3,023 on a rolling 12-month basis in March, an increase of 15 per cent year-on-year.

There were 286 liquidations and 308 insolvencies in March alone, making it the highest March total for liquidations since 2015.

Construction remains the leading industry for such action, with 768 firms liquidated in the past year. Hospitality is next with 399, an increase of 49 per cent from the previous 12-month spell.

Demand for credit

The Centrix report, released at the beginning of the month, shows consumer credit demand is up 1.3 per cent year-on-year but has softened in recent weeks.

The demand for vehicle loans rose 8.2 per cent, while the volume of mortgage and personal loan inquiries increased by 11.3 per cent and 7.9 per cent respectively. In contrast, credit card demand slumped by 17.4 per cent.

As for consumer arrears, these improved in March after falling to 11.7 per cent of the credit-active population. This compares with 12.1 per cent in February and is also 7.1 per cent lower than a year ago.

The number of people behind on payments declined to 459,000 in March, down 14,000 from February’s total.

“This suggests many households are in a more resilient position than they were a year ago,” notes Centrix.

“However, 95,000 consumers remain 90-plus days in arrears, showing more serious financial stress is still affecting a small group of borrowers.”

Automotive loan arrears held steady at 5.6 per cent in March but were lower than the 5.8 per cent reported a year earlier.

Credit card arrears increased slightly to 4.2 per cent but remain 10% lower than a year ago, while mortgage arrears improved to 1.4 per cent in March.