SAMBRA welcomes insurer concessions as fuel hikes add pressure to repair sector

The South African Motor Body Repairers' Association (SAMBRA) has welcomed early steps taken by some insurers to cushion the impact of fuel price increases on the already strained motor body repair (MBR) sector, signalling a necessary shift in how cost pressures are being addressed across the value chain.

The latest fuel adjustment, which saw diesel increase by R7.37 per litre (0.05% sulphur) and R7.51 (0.005% sulphur), has placed additional pressure on repairers who are already contending with rising operational costs, tight margins, and ongoing supply chain challenges. For many repairers, these compounded pressures are no longer incremental - they are existential.

Unlike many other sectors, repair pricing within the MBR industry is largely governed through systems such as Audatex, which are adjusted periodically to account for input cost fluctuations, including fuel. While these adjustments typically respond to gradual changes, sharp increases, particularly in diesel, create immediate cost pressures that cannot be absorbed at workshop level.

SAMBRA National Director, Juan Hanekom, says the decision by insurers to implement concessions, including the introduction of additional cost-alignment mechanisms such as a per-job fee, is both timely and necessary.

“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,” says Hanekom.

He adds that the move reflects a growing recognition of the need for greater collaboration across the value chain to ensure long-term sustainability.

“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.”

Encouragingly, these measures demonstrate that responsive adjustments are both feasible and implementable within existing insurer frameworks, providing a practical and scalable approach to addressing fuel-driven cost volatility.

Hanekom says while these interventions are welcome, they also highlight the need for ongoing alignment between insurers, repairers, and industry systems to ensure that pricing frameworks remain responsive to real-world operating conditions.

“Without consistent alignment, cost pressures will continue to accumulate at workshop level, with potential implications for repair capacity, turnaround times, and overall claims efficiency,” he says.

SAMBRA, a proud association of the Retail Motor Industry Organisation (RMI), encourages wider and more consistent adoption of such measures across the sector to ensure equitable operating conditions for all repairers and to support a stable, efficient 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,” concludes Hanekom.