Auto Data Solutions (ADS) has warned of a “systemic breakdown” in the automotive industry’s customer engagement strategies, as a rising number of recalled vehicles remain unrectified. New figures obtained by ADS under the Freedom of Information Act show more than 3.2 million vehicles subject to safety recalls are still unrepaired.

The proportion of unrectified recalls has risen significantly in recent years, peaking at 33.46% in 2022 and standing at 28.74% in 2023. Despite a relatively stable volume of total recalls since 2018, the rate of vehicles being returned for repairs has fallen, prompting ADS to raise concerns over the industry’s approach.

Jon Sheard, operations director at ADS, said: “Although franchise dealers are the customer’s main point of contact for recall rectification, some of the frictions and inefficiencies they face represent a systemic failure in the wider industry’s appreciation of customer engagement and retention.”

ADS points to fragmented data systems, inconsistent OEM support, and poor database management as key reasons for the missed opportunities. It argues that safety recalls should be viewed not only as a legal and safety obligation but also as a commercial opportunity. According to ADS, a single recall appointment generates an average of £309 in additional workshop business, including servicing and MOT work.

Sheard added: “Franchise dealers are ideally equipped to establish contact and take them through the process – but it’s happening less as time goes on. The risk of an unrectified vehicle leading to tragic consequences affects brands as well as their dealers, threatening relationships with customers throughout the industry.”

ADS estimates that the revenue loss from missed recalls in 2023 alone exceeds £120m. The company is currently working with dealer groups to identify procedural friction and promote best practices in recall follow-up, while calling for OEMs to improve support for downstream engagement.

Sheard said: “Failing to protect customer safety while missing revenue opportunities is a lose-lose mindset that must change so that dealers can boost their approach to building long-term loyalty. As recalls increase and EVs reduce routine workshop visits, this issue will only escalate. Dealers and OEMs who take the lead now, using improved data and better-connected systems, will be the ones who keep customers and revenue coming back.”