MEDIA INFORMATION FOR IMMEDIATE RELEASE 2 May 2013

AFTERSALES MARKET GROWS IN 2012 AS INDEPENDENTS CAPTURE THREE QUARTERS OF MOT WORK
Service, maintenance and repair market up by seven per cent in real terms between 2008 and 2012 Independent workshops captured 74 per cent of all MOTs in 2012 ..and 54 per cent of servicing work Value of aftersales market due to decrease in light of resurgent new car sales

Preliminary findings from the 2013 Castrol Car Servicing & Repair Trend Tracker report indicate that the retail market for service, maintenance and repairs increased to 9.37bn in 2012 (excluding MOTs and VAT), a one per cent increase in real terms over the previous year and a seven per cent rise since 2008. However, the report, due for release in June, also suggests the SMR market is set to decline in the longer term.

The growth across the aftersales sector is principally the result of motorists holding onto their cars for longer motorists purchasing their car from new now hold on to their cars for 3.6 years on average, compared to just 2.9 years in 2008 thereby incurring increased costs for servicing, maintenance and repairs (SMR).

The dearth of new car sales during the recession has seen the 0-4 year-old car parc, an area of the market traditionally dominated by the franchised sector, fall by 20 per cent. The independent sector has benefitted because the car parc as a whole has aged considerably according to the report, the average age of the car parc has risen from 6.3 years in 2008 to 7.4 years in 2012.

With a greater number of older cars on the road, independent workshops carried out almost five times as many MOTs in 2012 as the franchised sector (74 per cent of all MOTs versus 15 per cent). With MOTs comes a significant demand for repairs, and the majority of aftersales work for older cars is, in any case, conducted by independent workshops.

However, with new car sales predicted to continue to rise steadily, the report suggests that the average age of cars will fall and the size of the 0-4 year car parc will increase. Consumer research for the report found that independent workshops captured around 54 per cent of

servicing work in 2012, but this figure may decrease in future as the proportion of older cars falls in line with growing new car sales.

Independent workshops have enjoyed the lions share of aftersales work for a number of years, but as new car sales begin to make a recovery in the UK, businesses need to start thinking about how they will attract motorists to the workshop as the car parc becomes younger further down the line, says Marc Perkins, Castrol Independent Workshop Marketing Manager UK & Ireland.

Critically, independent workshops are still capturing almost three quarters of all MOT visits, and those businesses able to successfully promote their MOT facilities and high quality, high value servicing are going to be in demand for a number of years yet. Giving customers access to guaranteed parts, as well as premium lubricants recommended by car manufacturers, is proven to improve customer retention and satisfaction, and provides workshops with the tools to successfully drive sustainable profitability. -EndsNotes for editors The Castrol Car Servicing & Repair Trend Tracker 2013 is due for publication in June 2013. For further comment, please phone Trend Tracker director and lead aftermarket analyst Chris Oakham on 0870 421 4350 or email coakham@trendtracker.co.uk. About Castrol Castrol (www.castrol.com) is part of BP, one of the worlds largest energy companies. Through strategic partnerships with many of the worlds leading car manufacturers, Castrol is able to maintain its position as the market and technical leader for automotive lubricants for trade and retail customers. The Castrol product range for independent workshops is comprised of: Castrol EDGE: a range of premium fully synthetic lubricants, each endorsed by Castrols manufacturer partners Audi, BMW, Jaguar, Land Rover, MINI, SEAT, Skoda, Volkswagen and Volvo which contains Castrols proprietary Fluid Strength Technology to exceed the specific requirements of their modern engines. Castrol Magnatec: the premium semi-synthetic lubricant which features unique intelligent molecules that provide extra protection where its needed most in the engine, and globally recommended by Ford. Castrol GTX: superior engine protection. Castrol oil is recommended by the following manufacturer partners: Audi, BMW, Ford, Honda, Jaguar, Land Rover, MINI, SEAT, Skoda, Suzuki, Volkswagen and Volvo. For further media information please contact: Alex Michaelides Tom Richards +44(0)1622 766 529 +44(0)1622 766515 tom.richards@pfpr.com alex.michaelides@pfpr.com

Mike Stainton +44(0)1622 776 687 mike.stainton@pfpr.com