Aftermarket Magazine April 2023

APRIL 2023 AFTERMARKET 61 www.aftermarketonline.net our development of future technologies in collaboration with our key partners.” The two Japanese companies aim to set up a joint venture, including a supply chain and production system, to meet the growing demand for lithium-ion batteries by the end of 2023. New EV sales process weak link in chain, figures find While EVs continue to become more user-friendly, new figures suggest that the dealer experience for those buying electric cars is leaving something to be desired, with 41% of consumer complaints around EVs submitted to The Motor Ombudsman’s dispute resolution service during 2022 relating directly to the purchase process. 83% related to new cars, with 17% dealing with used cars. 10% of complaints resulted from delivery delays. Other complaints covered high pressure sales techniques, missing vehicle documentation, the provision of inaccurate information, lack of communication from retailers, and sudden order cancellations. 16% of complaints related to brakes, gearbox, suspension and tyres faults. 14% of complaints were about software and electrical issues, with keyless entry, windscreen wiper washer jets, app and software update failures, and sudden system malfunctions receiving regular mention. 8% related to interior systems, encompassing infotainment, wing mirror screens, and Sat-Nav issues. Exterior issues accounted for 6% of complaints, down from 11% in 2021, with bodywork damage and missing or faulty external parts receiving regular mentions. Charging, battery and range issues received the smallest portion of complaints, with 5% each emanating from these areas. 20% of those who made a complaint opted for compensation, with 18% going for a full refund. Commenting on the findings, Chief Ombudsman and Managing Director of The Motor Ombudsman Bill Fennell said: “Encouragingly, concerns about electric vehicles, which were brought by consumers to our dispute resolution service in 2022, made up less than 1% of all the contacts received by The Motor Ombudsman. What our latest data has also shown, and mirroring last year’s trend, is that customer service and the purchase process have once again proved to be the main bones of contention for EV buyers and owners. This means there remains a need for businesses to continue to ensure that their communications, sales and handover processes are comprehensive, fair and transparent.” For more information, visit: www.TheMotorOmbudsman.org/e lectric-vehicles Used car sales decline in 2022 but EVs see increase Ongoing parts supply issues afflicting the new car market had a knock-on effect on used car sales in 2022, as restricted supply entering the secondhand sector led to sales falling by 8.5% during the year, although EV sales continued to climb. According to the full-year used car sale figures from the SMMT, 6,890,777 used cars were sold in 2022, 640,179 less than during 2021. 2022’s total was also 13.2% below pre-pandemic 2019.71,071 used battery electric vehicles (BEVs) were sold over the 12-month period, 37.5% up on 2021, which took their market share to 1.0%, from 0.7% in 2021. Meanwhile, hybrid electric vehicle (HEV) sales increased by 8.6% and plug-in hybrid electric vehicle (PHEVs) were up 3.6%. Overall, electrified vehicles made up 4.1% of the total, up from 3.3% in 2021. Used diesel car sales dropped by 11.8%, and petrol by 7.7%. Commenting on the figures, SMMT Chief Executive Mike Hawes said: “With new car registrations growth expected this year, more of the latest low and zero emission models should become available to second owners. Accelerating uptake is key and will be dependent on drivers being assured of a positive ownership experience. This means ensuring charging infrastructure keeps pace with demand as more new and used car buyers make the switch to zero emission motoring than ever before.” NFDA Chief Executive Sue Robinson observed: “Used cars remain an extremely important segment of the UK car market. Looking ahead, used car values will remain strong whilst supply side issues on new vehicles are prevalent. We also expect the BEV section of the market to continue to rapidly grow as more models enter production.” Andy Hamilton, CEO at LKQ Euro Car Parts, said: “While the backlog on new vehicle production lines initially benefited the used vehicle market, it was inevitable that eventually, the shortage of new cars hitting the roads would catch up with used transactions. But the key takeaway from the data isn’t the size of the market; it’s the make-up. Appetite for the latest low and zero emission cars is growing among Britain’s used car buyers – and they’ll be looking to the independent aftermarket when it’s time to service them. “That’s why we’re helping garages and bodyshops to future-proof their operations through investment in training and equipment, while optimising our product ranges to cater for all vehicle types. We’re passionate about protecting the livelihoods the independent aftermarket supports, and the vital service it provides to businesses and consumers across the UK. “A £2,000 one-off cost can equip one technician with all the training, tools and equipment that’s needed to work on hybrids and EVs. With an average EV or hybrid service typically costing £300, garages can quickly generate a significant return on that investment.” AA Cars Director Mark Oakley added: “With fewer nearly new cars making their way onto the secondhand market for much of 2022, dealers simply didn’t have as much stock to sell. In addition, the weakening economy put the brakes on demand. Double-digit inflation squeezed disposable incomes and made some would-be buyers reluctant to commit to big ticket purchases like a car. While the second-hand car market typically performs better than the new car market when times are tough - thanks to the wide choice and compelling value it offers - rising interest rates and darkening economic clouds have pegged back demand. “One bright spot is the jump in the number of Electric Vehicles coming onto the used market for the first time. High petrol and diesel prices have prompted thousands of drivers to consider going electric; and with brand new electric models still costing significantly more than conventionally fuelled rivals, greater availability of second-hand EVs should give the used market a welcome boost in coming months.” www.aftermarketonline.net

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