LKQ Euro Car Parts CEO sets out key themes to drive the aftermarket in 2023

Date: Thursday 05 January 2023

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The independent aftermarket is facing some strong headwinds this year, at a time of major economic turbulence.

According to Andy Hamilton, CEO of LKQ Euro Car Parts, there are four key areas set to dominate the industry, split evenly between the short-term challenges garages and bodyshops face in maintaining work volumes, and the enduring macro-level issues that will shape the future of automotive.

Hamilton comments:

“Firstly, there will be a renewed focus on enhancing the customer experience. Independent garages and bodyshops can look to displace franchised operators if they can add a more professionalised experience to their more competitively priced offerings.

“A welcoming reception area, a clean workshop and a modern and functioning online presence can give motorists looking to make their money go further the confidence to work with an independent operator.”

Offering a more tailored set of services is a second key area of focus for independent garages and bodyshops, identified by LKQ Euro Car Parts as essential when catering for vehicle owners who will be far more conscious about their spending in 2023 than they have been in the past.

Hamilton explains:

“Being able to offer lower cost alternatives to OEM brands without compromising on quality, for example, may offer a more cost-effective solution while showing empathy for the customer’s own financial situation.

“This is why one of our own major areas of focus next year will bolstering the range of options available to garages and bodyshops, through our popular, great quality brands like Starline and MPM.”

Looking more broadly at the regulatory landscape that shapes trading conditions, LKQ Euro Car Parts’ third key area of focus in 2023 is the ongoing fight to protect the interests of the independent sector.

The business has been fairly outspoken on issues associated with block exemption over the past couple of years, and many of its key points were reflected in the recommendations published by the CMA in 2022.

But Hamilton notes that the threat of an extension of the mandatory MOT period remains, and there is uncertainty around whether an equivalent of SERMI will be introduced in Great Britain, as it will be in Northern Ireland.

Lastly, the sector’s training and talent gaps continue to widen, which LKQ Euro Car Parts says must be addressed this year. The worry is that as garages and bodyshops inevitably become more focussed on controlling cost this year, neither issue is likely to improve.

Hamilton says:

“Leaving aside the race to get EV-ready and the need to build a sustainable future, which may rightly or wrongly feel like a problem for another day, the arrival of ADAS-equipped and even hybrid vehicles in the aftermarket is very much upon us – an issue exacerbated by the decline in new car sales.

“Where they can, garages and bodyshops must continue to invest in the skills, people and equipment needed. There is even an opportunity to help take market share from franchises if they can service more sophisticated vehicles.”

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