The coming year has the potential to continue the challenges which the independent aftermarket is already facing, with some of these increasing as the months progress.
LKQ UK & Ireland chief executive, Kevan Wooden, has revealed his predictions for the independent aftermarket in 2024, and has highlighted the electric vehicle (EV) transition
The newly appointed chief executive expects more garages in the independent aftermarket sector to invest in their equipment and skills to service EVs. Though the government has moved the end date for the sales ban of new ICE engine vehicles to 2035, the ZEV mandate states that vehicle manufacturers must target 22% of their sales to be battery-electric vehicles (BEVs) in 2024, a figure that will rise in increments to 100% by 2035.
EV market will grow
While registrations of BEVs faltered at the end of 2024, this may have been due to exceptional circumstances, such as a strong December for the technology in 2022, and the incoming ZEV mandate seeing manufacturers delay deliveries into January 2024. The market will only continue to grow in the coming years.
Therefore, Wooden has warned that component manufacturers, motor factors and independent garages and chains must all increase their focus on EVs to be able to support an ever-growing part of the car parc.
LKQ Euro Car Parts’ training arm LKQ Academy will boost its training provision in 2024 to cater for increased demand for EV skills, as well as hybrid engines, from the independent aftermarket.
As the EV transition accelerates, Wooden expects to see greater ingenuity from garages in fixing and maintaining batteries, which would otherwise be fully replaced at a high cost to customers and the environment.
Training key for independent aftermarket
Wooden also sees motor factors joining forces to act as champions of the independent aftermarket, and the garages and bodyshops that exist within it.
Motor factors will help the industry to address market and legislative challenges such as enforcing the Motor Vehicle Block Exemption Order (MVBEO) to its fullest extent, and to support a replica scheme to the EU’s SERMI, which will provide criminal background checks on technicians to in effect vet them for work on vehicle security systems. Such a scheme has been launched by the Independent Garage Association (IGA).
From its perspective, Wooden sees LKQ UK & Ireland further investing in its capabilities to provide the training, expertise and products the independent aftermarket needs to become more environmentally and financially sustainable.
The ongoing modernisation of the independent sector is a topic he has long-promoted as a means of tackling the industry skills crisis and boosting its competitiveness.
Taking the reigns
Kevan Wooden was appointed chief executive at the leading motor factor last month, with incumbent Andy Hamilton becoming senior vice president of LKQ and president and executive managing director of LKQ Europe.
“The EV transition will continue to influence motor factors’ and independent garages’ direction of travel in 2024,” commented Kevan Wooden, CEO at LKQ UK & Ireland. Simply put, those that fail to prepare risk falling behind in the market, with plug-in vehicles representing a major, growing share of all new and used car sales.
“The transition to EVs represents a multifaceted challenge, from upskilling thousands of technicians UK-wide – to finding innovative solutions for fixing and maintaining these vehicles. We will continue to rise to this challenge and to support independent garages, with 2024 representing a pivotal year for progress, despite the ICE ban delay to 2035.”
