In a recent podcast episode recorded by Quentin Le Hetet, GiPA Uk, showed how the evolving landscape of the UK’s automotive aftermarket in 2023 was thoroughly dissected, offering invaluable insights into the current state and future trends of the industry.

This blog post delves into the key points discussed, shedding light on new registrations, the used car market, and the electrification of vehicles, along with the challenges and opportunities these trends present.

1. The Resurgence of New Registrations in 2023

In the UK we witnessed a significant recovery in the automotive industry post-COVID-19, with new registrations showing a robust 20% increase year-on-year. Despite this positive trend, the industry still lags behind the pre-pandemic levels of 2019 by about 400,000 vehicles. This resurgence is surely a sign of market recovery but also an important symbol of transformation in shaping the future car park. It will be even  more important to understand the customers’ needs as the scenario is variegated and it will be composed by:

• 0-4 years old cars which will be pushed in the market
• 5-9 years old cars which will be shrinking
• 10+ years old segment which will be growing in the car parc

2. The Vital Role of the Used Car Market

A striking aspect of the analysis was the emphasis on the UK’s used car market, which exceed even Germany in annual sales. The UK’s unique financing models, like Personal Contract Purchase (PCP), create a dynamic where cars return to the market after 2-3 years, entering a new cycle with fresh after-sales needs. This scenario underscores the importance of understanding and catering to the diverse requirements of different vehicle age groups. A key aspect for all the aftermarket players who should accordingly adapt their strategy by better understanding their customer needs.

3. Electrification: A Game Changer in the Automotive Industry

The ICE vehicles initially planned for 2030 has been delayers however OEMs already made major investment in the production of new electric vehicles and more than 17% of new cars sold are electric vehicles. Therefore, the UK market is seeing a substantial shift. Which will see this year 1 million electric vehicles on the road.

This transition brings new challenges and opportunities in after-sales services, especially as dealers and repair shops adapt to the nuances of maintaining and repairing electric vehicles.

These three positive trends are followed by some major stakes in the UK aftermarket related to some critical issues facing the industry, such as the shortage of skilled workshop technicians and the need for enhanced training, especially in the context of EVs.

Staff retention, the importance of apprenticeships, nurturing talent are all crucial factors for the industry to adapt and thrive.

Anticipating challenges and planning for them is essential for businesses in the aftermarket to succeed in this evolving landscape.

While, the industry is recovering from past disruptions, is also facing new challenges and opportunities, particularly in the realms of new car registrations, the prosperous used car market, and the inevitable shift towards electrification. These insights not only highlight the current state of the market but also underscore the importance of agility and forward-thinking in this rapidly evolving sector.