Helen Carling, Commercial Director at SYNETIQ, an IAA company and the UK’s leading vehicle recycling and dismantling company shares her predictions for 2024 and what it could possibly look like for our industry.
At the start of last year we were on the road to a 2030 ban of petrol and diesel vehicles. The nation was planning for an EV future which was less than 10 years away.
Fast forward to present day, the urgency to transition to a world of electrified vehicles has hit the brakes, however this has not dampened our efforts to ensure we’re prepared for when the deadline finally arrives.
According to the Financial Times, the EV share of the British car market has stopped growing, with the upfront costs of electrified vehicles deterring consumer sales – 30 and 40% higher than combustion vehicles.
Entering the year, we expect to see an increase in demand for EV and hybrid green parts as warranties expire but also as insurers continue to move towards green parts as part of their standard repair process.
We’re creating an end of life solution for EV batteries whether that be reuse, recycle, repair or resell. As a vehicle recycler, we are establishing relationships across the industry to develop a solution and provide a supply of safe and affordable batteries for repair purposes.
The cost of an EV repair is another factor preventing consumer sales. Auto Trader recently reported demand for used cars was still high with an increase in sales compared to 2022. This is reflective in our own sales channels with more auction and green parts sales reported in the past year. The number of electric vehicles coming our way for salvage is also indicative of the repair process being too expensive. We have seen an increase of 55% EVs compared to the previous year.
Looking at the year ahead, we’re expecting some real change as new technologies develop and the car market continues to evolve. We’re yet to experience the knock-on effect from new EV brands entering the market, mainly from China. We’re anticipating an influx of more varied makes and models coming our way, with new parts diluting current stock.
This is going to come, and we’re already on the front foot in developing a battery circularity that will feed our reuse, recycle, repair and resell channels. It will prevent an overflow of unused batteries that ordinarily would have faced a future of gathering dust in secure storage.
We’re excited for the year ahead, lots of change on the horizon and a future full of possibilities.