According to Sambra on Monday, the situation is particularly challenging because repair pricing in the industry is largely regulated through systems such as Audatex.
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The South African Motor Body Repairers' Association (Sambra) has welcomed early concessions by insurers aimed at easing mounting cost pressures in the motor body repair (MBR) industry, as steep fuel price increases intensify strain across the sector.
The latest fuel hike, which saw diesel prices rise sharply by over R7 per litre this month, has added to an already difficult operating environment for repairers. Many workshops are grappling with escalating expenses, constrained margins, and lingering supply chain disruptions, pushing some businesses to the brink.
With fuel costs remaining volatile and economic pressures persisting, the MBR sector’s ability to adapt — and the willingness of insurers to support that adaptation — may prove decisive in safeguarding the long-term sustainability of South Africa’s automotive repair ecosystem.
According to Sambra on Monday, the situation is particularly challenging because repair pricing in the industry is largely regulated through systems such as Audatex. These systems are designed to adjust gradually in response to cost changes, meaning sudden spikes — especially in fuel — are not immediately reflected in pricing structures.
This lag creates a gap that repairers are forced to absorb in the short term, placing significant pressure on operational viability.
Sambra national director Juan Hanekom said the introduction of insurer-led interventions, including additional cost-alignment mechanisms such as per-job fees, represents a critical and timely response.
“The increase in fuel, especially diesel, has a direct and immediate impact on the operational viability of many repairers. These interventions are a positive step in recognising the real cost pressures faced at workshop level,” Hanekom said.
He noted that the move signals a broader shift towards collaboration across the value chain — a development the industry has long called for.
“The MBR sector plays a critical role in ensuring that vehicles are repaired safely and to the correct standards. Supporting repairers is ultimately about protecting consumers and maintaining the integrity of the broader automotive ecosystem,” he added.
The concessions are being viewed as a practical demonstration that insurers can respond more dynamically within existing frameworks, offering a potential model for managing volatility in input costs such as fuel.
However, Sambra cautioned that while these measures are encouraging, they are not a complete solution. The association stressed the need for ongoing alignment between insurers, repairers, and pricing systems to ensure that cost structures remain reflective of real-world conditions.
Without such alignment, Hanekom warned, financial pressures could continue to build at workshop level — potentially affecting repair capacity, turnaround times, and the overall efficiency of insurance claims processing.
Sambra, which operates under the umbrella of the Retail Motor Industry Organisation, is now calling for wider adoption of similar support measures across the industry. The goal, it said, is to create more equitable operating conditions and maintain stability in the claims environment.
“As an industry, we need to move beyond short-term adjustments and work towards structural alignment that ensures fair, sustainable, and transparent pricing mechanisms,” Hanekom said.
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