Welcome back to another episode of “On the Ramp.” Today, we dive into an insightful discussion with Anthony McAteer, the Group Procurement Category Director at LKQ Euro Car Parts, a leading car parts supplier. This special episode brings forth valuable perspectives for independent garage owners facing the rapidly changing automotive landscape.
Youtube – https://youtu.be/3WGWsm1jnTg?si=Y6EtCisifMj–xem
Spotify – https://open.spotify.com/episode/6qXRqHUyvupPamtaD8Ilts
Introducing Anthony
Anthony, with 14 years of experience at LKQ Euro Car Parts, shared his journey from sales and commercial roles to his current position in procurement and category management. His extensive background in the industry has equipped him with a unique understanding of both supplier and customer needs, positioning him as a pivotal figure in bridging these two critical aspects of the automotive supply chain.
Navigating the EV Revolution
One of the central themes of the discussion was the growing presence of electric vehicles (EVs) and their impact on the automotive aftermarket. Anthony emphasised that while EVs currently represent a small percentage of the market, their influence is set to grow. He pointed out that EVs generate less repair revenue compared to traditional internal combustion engine (ICE) vehicles, posing a challenge for garages that rely heavily on parts sales and repairs.
However, he reassured that LKQ Euro Car Parts is proactive in addressing this shift. The company is working on expanding its range of EV parts and ensuring that independent garages are equipped to handle EV repairs. Anthony urged garages to have at least one EV-capable technician and to advertise their ability to service EVs, highlighting the importance of visibility in retaining customers who might switch to EVs in the future.
The Importance of Being Part of a Network
Anthony also touched upon the trend of independent garages joining networks or concepts, especially in response to the growing fleet and lease markets. These networks offer a structured approach to accessing work referrals and staying competitive. While the UK has been slower to adopt these concepts compared to other European markets, the benefits are clear in terms of shared knowledge, resources, and increased business opportunities.
Addressing the Diesel Decline
Another significant topic was the decline in diesel vehicle registrations and its implications for the aftermarket. Diesel vehicles, known for their complexity and higher repair costs, have traditionally been a significant revenue stream for garages. As the market shifts towards petrol and EVs, Anthony highlighted the need for garages to adapt and prepare for this transition. He noted that while the decline in diesel might not pose an immediate threat, it is crucial for garages to diversify their capabilities and offerings.
Looking Ahead: LKQ Euro Car Parts’ Strategy
Looking to the future, Anthony shared LKQ Euro Car Parts’ strategic focus on supporting independent garages through the evolving automotive landscape. This includes ensuring the availability of a wide range of parts, from traditional ICE vehicles to the latest EV components, and fostering strong supplier relationships to maintain a robust supply chain. He emphasised the importance of garages staying informed, investing in training, and being proactive in their marketing efforts to capture new business opportunities.
In conclusion, Anthony’s insights provide a roadmap for independent garages navigating the challenges and opportunities presented by the automotive industry’s evolution. By staying adaptable, investing in new technologies, and leveraging the support of networks and suppliers like LKQ Euro Car Parts, garages can secure their place in the future of automotive repair and maintenance.
Stay tuned for more episodes of “On the Ramp,” where we continue to bring you the latest insights and expert opinions from the automotive world.
