Aftermarket June 2022

NEWS With UK inflation hitting 9% in April, the cost of living crisis continues to bite with the garage sector not immune from the effects. While new car sales continue to lag though, the UK’s used car market actually increased 5.1% in the first quarter of 2022, according to SMMT figures. 1,774,351 used cars were sold during the period, 86,596 more than during the same period in 2021. January saw a 17.7% increase, while February went up by 7.4%. However, in March sales fell by 6.8%, which reflected the strong March in 2021. Overall, used car sales are still 12.2% below the pre-pandemic of 2019. Used battery electric vehicle (BEV), sales went up by 120.2%, while plug in hybrids (PHEVs) and hybrids (HEVs) went up by 35.3% and 28.8% respectively. Despite this, petrol and diesel still made up 96.2% of used sales, or 1,707,135 units. Plug- in vehicles comprised 3.6% of the total market share, up from 1.6% in Q1 2021. Commenting in the figures, SMMT Chief Executive Mike Hawes said: “With the new car market hampered by ongoing global supply shortages, growth in the used car market is welcome, if unsurprising especially given we were in lockdown last year. Electric car sales are energising the market, with zero emission vehicles starting to filter through in larger numbers to consumers looking forward to driving the latest and greenest vehicles. Although there is some way to go before we see the recent growth in new EVs replicated in the used market, a buoyant new car market will be vital to help drive fleet renewal which is essential to the delivery of carbon savings.” NFDA Director Sue Robinson observed: “As new car sales continue to be impacted by the ongoing supply constraints, it is encouraging to see that consumer appetite for second- hand vehicles remained robust in the first quarter of the year.” On EVs she said: “It is positive to see the used electric vehicle segment grow significantly as sales of new EVs filter through the used car market. Despite the uptake of second-hand EVs, the fact that internal combustion engine vehicles are still dominating the used car market shows that the renewal of the UK car parc needs time despite industry’s investments.” She added: “Going forward, demand for used vehicles is expected to remain stable although external factors such as supply issues will continue to play a key role.” While independent garages may view increasing used car sales as good news, LKQ Euro Car Parts CEO Andy Hamilton has warned that complacency could be fatal for businesses: “The used vehicle market has continued to benefit from the backlog on new vehicle production lines, which has been exacerbated by the tragic events in Ukraine. That said, momentum has slowed throughout the quarter, as millions of households are now feeling the effects of the cost-of-living crisis. “These factors, which are also squeezing the new vehicle market, mean the average age of the UK’s vehicle parc continues to increase. For independent garages, this bodes well in terms of inbound work volumes, provided MOTs continue to be an annual requirement. Policy makers ought to note that MOTs are even more critical to road safety as vehicles age. He concluded: “Our advice to garages is not to get too comfortable, and to future-proof their operations through investment in training and equipment. Record numbers of drivers purchased pre-owned zero-emission cars in Q1, highlighting the need for garages to get hybrid and EV-ready.” For more from LKQ Euro Car Parts’ Andy Hamilton, turn to pages 20-21. 4 AFTERMARKET JUNE 2022 www.aftermarketonline.net UK used car market grows 5.1% in Q1 Hero LKQ Euro Car Parts driver awarded An LKQ Euro Car Parts delivery driver has received Trakm8’s Road Safety Hero Award, an initiative launched by the vehicle technology solutions provider and road safety charity Brake, after he rescued a couple from a submerged vehicle. While on his rounds one day, Gary Nicol spotted an upturned vehicle submerged in water down an embankment, and noticed the engine was still running. He then led efforts to free the couple trapped inside. Gary said: “I just did what I think anyone else would have done.” Jim Hill, Group Marketing Director, at Trakm8, added: “We were all blown away by Gary’s bravery and quick-thinking. He’s a real credit to LKQ Euro Car Parts.”