Andy Hamilton, CEO of LKQ Euro Car Parts has said that while global supply problems in the new car market are causing serious issues for many, for a few there will be opportunities.
“The semiconductor supply crunch, coupled with broader global shipping challenges, helped to make it a year of significant growth for used car sales. Demand was especially hot for cars under three years old as drivers grew tired of long waits for new vehicle orders,” explained Hamilton.
“All of this bodes well for the aftermarket, as 2021’s comparatively fallow year for new car sales will nudge up the average age of the UK’s parc over the long-term”.
READ: MBO AT OPTIMAL UK AS LKQ SELLS SHARES
READ: CHIP SHORTAGE: ‘WE HAVEN’T EVEN REACHED THE MIDDLE YET’
Hamilton added that, unsurprisingly, the types of vehicles on the road will change when high-volume orders for new vehicles return. “The data also tells a story of how the aftermarket will need to adapt in order to thrive over the coming years,” he said. “Transactions for used hybrid and electric vehicles hit new highs last year, and the rising popularity of automatic transmissions, which now out-sell manual cars in the new vehicle market, is beginning to be reflected in the used space. Similarly, the growth of ADAS-equipped vehicles and the sophistication of other on-board systems is becoming ever more prevalent in older vehicles”.
“We’re ramping up our range of training and support services to help the independent sector lean into these shifting trends. Staying ahead of the game now will help garages to quickly seize the new opportunities being created by the increasing number of times relatively newer vehicles are changing hands in the used car market.”
Go to comments