Finance, Insurance, Mobility, People, Supplier, vehicle sales and Words
Comprehensive car insurance premiums fell six per cent, or £59, between April and June this year.
Car insurance premiums have now fallen for two consecutive quarters after a dip of five per cent in the first three months of 2024, with average annual premiums now £882, according to the latest Confused.com Car Insurance Price Index in association with WTW.
Across the year though, average prices rose 14% (£106).
Tim Rourke, UK Head of P&C Pricing, Product, Claims and Underwriting at WTW, said, “After a sustained period of significant rate increases to counter the high levels of claims inflation, it is interesting to see from this data a change in insurers’ behaviour indicating that premium adequacy may now be sufficient to allow insurers to drop rates.
“However, insurers still face a number of ongoing challenges, including the rising cost of materials and labour, second hand cars and advanced vehicle technology, as well as operating in a changing political landscape.”
Steve Dukes, CEO at Confused.com, added, “It seems after a long period of such steep increases in car insurance prices, the industry is starting to stabilise, adjust to increased claims costs and bring prices down.
“However, prices are still up year on year, creating opportunities for insurers to grow their customer base and for consumers to save by switching. We’re finding insurers using industry insights and data are able to compete more effectively by increasing the speed at which they reflect changes in the market within their pricing.”
Bodyshop, Environment, Finance, Insurance, Mobility, People, Salvage, Supplier, Technology, Training, Vehicle Repair, vehicle sales, wellbeing and Words
Bodyshop Briefs
Steer Automotive Group has secured carbon neutrality in accordance with PAS 2060 for the second year in a row, after reducing its CO2 emissions by 5.3% last year. Meanwhile, the group has also expanded its PAS 2060 portfolio to include 24 more main sites.
Crash Assessor UK has achieved carbon neutrality in accordance with PAS 2060.
Komoo Inverness has secured BS10125:2022 certification after achieving 100% compliance in its latest audit.
L&I Eaton Liverpool emphasised its commitment to company culture by organising a day of team-building with colleagues taking part in cross-country riding.
Industry News
IIHS-HLDI research finds little evidence that partial automation prevents crashes
Crash records and insurance data offer little evidence that partial automation systems are preventing collisions, research from the Insurance Institute for Highway Safety and the Highway Loss Data Institute shows.
“Everything we’re seeing tells us that partial automation is a convenience feature like power windows or heated seats rather than a safety technology,” IIHS President David Harkey said.
Prasco trebles cooling system parts
Prasco UK has more than trebled the number of individual part numbers it holds for cooling systems over the last 12 months.
It now includes more than 4,000 individual part numbers at its distribution hub in Doncaster, making it the widest range in the UK.
MIB tackles uninsured drivers with joint initiative
Five police forces across the M62 worked in collaboration with the Motor Insurers’ Bureau to tackle uninsured driving. Officers from Greater Manchester, Merseyside, West Yorkshire, Cheshire, and Humberside Police used a number of methods to identify and seize vehicles driven by uninsured drivers.
BASF joins NBRA
ARC360 Corporate Partner BASF has joined the National Body Repair Association and Vehicle Builders and Repairers Association as a Gold Supplier member.
Meanwhile, BASF brand Glusurit has been selected as a preferred supplier by Avant Repair Networks.
SMMT urges government to support industry drive net zero targets
The Society of Motor Manufactures and Traders is urging the new Labour government to use the industry’s decarbonisation success to the UK’s economic advantage, as a new report shows direct carbon emissions from vehicle factories halved over the past 25 years – helping position the country as the ideal place to produce the next generation of zero emission vehicles.
Competitors have participated in regional competitions at their local colleges, training provider centres, workplaces, or online to secure their place in the WorldSkills UK National Finals, which will take place in Greater Manchester from 19-22 November.
21,000 vacancies offer enormous career opportunities in automotive
As the sector continues to battle its biggest skills gap in history, the IMI and Toyota GB have joined forces to share the real voices of employees to inspire young adults at a career crossroads, and adults looking for a career change into the industry. The stories are being shared on the ‘There’s More to Motor’ YouTube channel.
IMI finalists announced
The IMI has announced the finalists for its Skills Competition, which will see 24 technicians compete in four categories, Body Repair, Refinishing, Light Vehicle Technology, and Heavy Vehicle Technology, from 18-22 November.
Winners can then go on to represent Squad UK in EuroSkills 2025 in Denmark and WorldSkills International 2026 in China.
New AI safety cameras trial expand across Britain
A trial of new artificial intelligence technology that can identify drivers not wearing their seatbelts will be extended until March.
National Highways is working with 10 police forces to test the technology, which captures images of drivers and then uses AI to identify those without seatbelts or using their phones behind the wheel.
Copart expansion to continue in St Helens
Copart has announced that it will open a new Operation Centre in St Helens. As part of its Land and Expand strategy, the new 19-acre site will provide further storage capacity for up to 24,000 vehicles in the region.
Ben raises awareness around financial support
Automotive industry charity Ben is raising awareness around the support it offers to those facing money worries after receiving nearly 16,000 enquiries and offering more than 600 grants in the last year.
Fix Auto Penzance upgrades wheel refurbishment capabilities
Fix Auto Penzance has invested in a state-of-the-art laser-guided diamond-tipped cutting machine to enhance its alloy wheel refurbishment capabilities.
Owner Stuart Cameron bought the DCR Pro machine from Portsmouth-based DCR Systems after seeing the technology in action at the network’s National Conference sponsors’ exhibition in May.
VM News
Dacia and Swift suffer in new Euro NCAP ratings
Euro NCAP has released new safety ratings for a range of models. The Dacia Duster and Suzuki Swift both achieved just three stars, while the Mercedes-Benz E class, the VW Passat, Skoda Superb and Skoda Kodiaq all achieved five stars
Meanwhile, the BMW x2 and Renault’s Espace and Rafale were rated as five-star twins to 2022-tested cars.
Stellantis extends hybrid range to meet demand
Stellantis has responded to growing customer demand by increasing its range of hybrid models. Thirty models be available across Europe by the end of the year, with six more launched through 2026.
Ford unveils re-imagined Capri
Ford has re-released its iconic Capri, with two powertrain options offering ranges of 390 miles or 370 miles.
It also includes full ADAS features including Blind Spot Information System, Clear Exit Warning, Cross Traffic Alert with Active Braking Driver Alert, Evasive Steering Assist, Front and rear parking sensors, Intelligent Adaptive Cruise Control with Stop and Go, 12 Lane Departure Warning, Lane-Keeping Aid, Pre-Collision Assist, Rear-View Camera, Reverse Brake Assist, Selectable Drive Modes, Traffic Sign Recognition, and Wrong Way Assist.
VWG and Rivian form joint venture to develop EVs
Rivian Automotive and Volkswagen Group have formed an equally controlled and owned joint venture to create next-generation electrical architecture and best-in-class software technology.
Chery Achieves Over One Million Vehicle Sales
Chery Group has reported vehicle sales of 1,100,621 in the first half of the year, up 48% on the same period last year.
People
Stephan Surmont has been appointed Group Managing Director of Nationwide Assistance Group.
FMG Repair Services has named Kris Hurd as Head of Operations South.
Paul Titchmarsh has been appointed as UK forecast manager for cap hpi.
Bodyshop, Environment, Finance, Insurance, Mobility, People, Salvage, Supplier, Technology, Training, Vehicle Repair, vehicle sales, wellbeing and Words
EV exposure increasing according to ARC360 poll
Nearly seven in 10 respondents to a live poll conducted during ARC360’s Future Vehicle Technology event cited their exposure to EV claims was now moderate or high.
Bodyshop Briefs
Steer Automotive Group has announced the acquisition of Gemini Accident Repair Centres, furthering its mission to provide unparalleled automotive repair services across the UK. This acquisition includes all 38 sites of Gemini, expanding Steer’s footprint from Edinburgh to Cornwall.
Fix Auto Coalville has celebrated its 50th anniversary after being founded by Roger Billett in 1974.
Scottish vehicle repair centre Anderson Clark Motor Repairs will now be run by its employees after being sold to a newly-formed trust.
Fylde Coast ARC has passed its unannounced BSI Kitemark audit with flying colours.
Industry News
Stellantis repair network joins NBRA
Stellantis has announced that its entire accident repair network has joined the NBRA.
This significant development brings Stellantis and its accident repair programme, representing nine of the 14 global brands in the UK, into a formal association with the NBRA.
Motor premiums up 34% in a year
New data has revealed that the average quoted price of car insurance rose by 34% in the year to May. This is according to the latest Consumer Intelligence Car Insurance Price Index.
GSR2 makes ADAS mandatory from 7 July
The European Union’s New Vehicle General Safety Regulation (GSR2) comes into effect on 7 July, making a number of ADAS features mandatory in vehicles.
These include Intelligent Speed Assist (ISA), Autonomous Emergency Braking (AEB), Driver Drowsiness and Attention Warning (DDAW), and Emergency Lane Keeping Systems (ELKS).
Copart unveils Chelmsford Operation Centre
Copart UK has opened a new Operation Centre in Chelmsford, Essex. The new 30-acre site is part of an ongoing expansion strategy with further announcements to come.
Falling capacity creating bottlenecks
Falling capacity in the refurbishment sector is hitting remarketing, creating substantial bottlenecks in preparing cars and vans for sale, according to the Vehicle Remarketing Association.
Irish motor insurance damage costs soar 126%
The cost of Irish motor insurance claims rose 126% to £160m in the first half of 2023.
Drivers reminded to check insurance
Motor Insurers’ Bureau is reminding drivers to check their vehicle is properly insured, after a YouGov study showed 10% of the British public are not aware that it is compulsory for any vehicle used on a public road.
Silverlake hosts Brazilian recycling delegation
Silverlake hosted nine members of the Brazilian Automotive Recycling Association recently to showcase UK best practice around vehicle recycling.
The tour covered all aspects of automotive recycling including processing vehicles for auction or dismantling for reclaimed parts.
Stella partners with global leader in automotive solutions Assurant
Stella has announced a strategic partnership with Assurant, a global leader in insurance solutions. This collaboration aims to redefine automotive cover with a focus on delivering tailored insurance solutions specifically for women.
SYNETIQ colleagues scale Three Peaks for charity
Colleagues at SYNETIQ, an IAA company and one of the UK’s leading integrated vehicle salvage, dismantling, and recycling companies, have completed the Yorkshire Three Peaks Challenge, raising over £4,000 for suicide prevention charity ANDYSMANCLUB.
Why skills are critical to the future mobility debate
IMI CEO Steve Nash was part of one of a high-profile panel discussion on skills. He formed part of the Auto manufacturing and skills: reshaping the industry in the electric image session at Move.
Tradex joins the IFB’s fraud-fighting membership
Tradex Insurance Company has joined the Insurance Fraud Bureau membership to play a key role in the industry’s collective fight against fraud.
Sales in June rose by 1.1% to take total sales so far in 2024 to 1,006,763 units. Meanwhile, the UK new light commercial vehicle (LCV) market fell for the first time in June after 17 successive months of growth.
Onyx unveils new BMS
Onyx has launched a new bodyshop management system that streamlines workflows and automates core processes like estimating, job scheduling, and parts ordering. It has been developed specifically to address the challenges of legacy systems.
Ben adds details to flagship fundraising events
Automotive charity Ben has announced more details surrounding its two flagship fundraising events, Ben’s Big Breakfast and Ben Ball.
Motor Ombudsman’s Knowledge Base viewed over 170,000 times
The Motor Ombudsman’s online Knowledge Base, the reference tool designed to provide consumers with responses to queries on car ownership, vehicle maintenance and dispute resolution, has seen a rise in usage during the second quarter of 2024.
Final whistle blows on Plunkys All Stars
The final Plunkys All Stars charity match raised more than £26,000 for its three charities Norkfolk and Waveney Mind, East Anglian Air Ambulance, and the Fire Fighters Charity.
The annual matches, the brainchild of industry stalwart Steve Plunkett, have been played for more than a decade now, raising over £119,000 collectively for valuable causes.
MAHLE Powertrain is expanding its Northampton facility to include a dedicated hydrogen powertrain testing capability. The capacity to hold two tube-trailers on-site with rapid switch-over functionality between them will ensure a near-continuous supply of hydrogen.
VM News
Stellantis joins with CEA to pursue next-generation battery cell technology
Stellantis and CEA, one of the world’s most innovative research institutions, have announced a new, five-year collaboration that targets in-house design of next-generation battery cells for electric vehicles.
Geotab and BYD Trucks Europe announce integration
Geotab has announced an integration of its European-based fleet management solutions with BYD Trucks Europe. This collaboration provides BYD Trucks Europe with a robust fleet management solution across Europe.
Commercial Van safety performance improving significantly
The latest Euro NCAP Commercial Van ratings show a significant improvement in the performance of ADAS available on commercial vans. Seven of the tested vehicles (40%) received Euro NCAP’s Commercial Van Platinum rating and performed substantially better than the EU General Safety Regulation.
Toyota to host IAATI conference
Toyota will host the International Association of Auto Theft Investigators UK Branch national vehicle crime conference on 9-10 July at its manufacturing plant in Derbyshire, underscoring it’s commitment to combating vehicle crime.
Rimac unveils Verne EV
Rimac has shifted from hypercars to autonomous transportation with the unveiling of Verne, a new electric, autonomous fleet of taxis to be launched in Zagreb in 2026.
People
LKQ Corporation has appointed Justin Jude as its new President and CEO.
Motor Insurers Bureau has named Angus Easton as CEO.
Mark Whiting has been appointed Bodyshop Assistant Manager at Dick Lovett Group.
Michael Massey has been named Head of Technical Capability & Innovation at FMG Repair Services.
The IMI has announced a strategic transition of its executive team, with Kevin Finn stepping in as Executive Chair during the transition, Azlina Bulmer as Managing Director and Simon Barrell as Chief Financial Officer.
Aston Barclay Vehicle Remarketing has appointed Eddie Thomson as Chief Operating Officer.
Adam Wood is appointed Managing Director Renault brand UK and Country Head Renault Group UK, replacing Guillaume Sicard.
Bodyshop, Finance, Mobility, People, Supplier, Vehicle Repair, vehicle sales and Words
Nearly seven in 10 respondents to a live poll conducted during ARC360’s Future Vehicle Technology event cited their exposure to EV claims was now moderate or high.
The event took place at the Manufacturing Technology Centre (MTC) in Coventry, supported by Corporate Partners: BASF, CAPS, Copart, Entegral, Enterprise, Mirka, Nationwide Vehicle Assistance, S&G Response, Solera Audatex; along with Partners: e2e, Gemini ARC, Repairify and Prasco, and sponsored by Activate Group and Thatcham Research along with vehicle manufacturer Stellantis.
Underlining the interactive element of ARC360 and ILC events, a number of live polls were held during the day to take a real-time temperature of industry feelings to a number of key factors.
When asked current exposure to EV claims, 51% described it at moderate but growing, with 17% saying it was already high. Just over a quarter (26%) said it was still minimal, with only six per cent saying they had yet to have any exposure to EV claims.
Increased costs associated with EVs was identified as the number one learning experience to date by more than 30% of respondents, while eight per cent directly suggested the need for training was the main issue.
In terms of other technologies impacting business, just under half of respondents identified ADAS as the number one influence, ahead of AI.
Meanwhile, the ZEV Mandate, which sets vehicle manufacturers proportional and increasing targets for EV sales, is expected to have a high impact for 26% of respondents. More than half (54%) said it would have a moderate impact with 18% believing its impact on their own business will be minimal.
Finance, Insurance, Mobility, People, Supplier, vehicle sales and Words
New data has revealed that the average quoted price of car insurance rose by 34% in the year to May.
This is according to the latest Consumer Intelligence Car Insurance Price Index.
However, the trend could be working the other way. The three months to May saw average quoted premiums fall by 1.3%. This was the first quarterly drop since the last three months of 2021 and follows a 0.5% increase in the previous quarter, which was the lowest rise since November 2021.
That data showed that in May drivers most commonly received a quote between £500 and £749, with 21% of quotes falling in this price range. Around 58% of quotes were below £1,000.
Max Thompson, Insurance Insight Manager at Consumer Intelligence, said, “The escalation of car insurance premiums may finally be at an end, with insurers now reducing premiums and jostling to get to the top of screen on the price comparison website results pages.
“Insurers are making their pricing efforts more visible to consumers. There are now more price cut offers visible on quotes than messages relating to cover benefits, which is the first time this has been the case since July 2022.”
Average overall quoted premiums have risen 122.7% since October 2013 when Consumer Intelligence first started collecting data.
Bodyshop, Finance, Mobility, People, Salvage, Supplier, Vehicle Repair and Words
Steer Automotive Group has announced the acquisition of Gemini Accident Repair Centres, furthering its mission to provide unparalleled automotive repair services across the UK.
This acquisition includes all 38 sites of Gemini, expanding Steer’s footprint from Edinburgh to Cornwall.
Founded in 2008 by Tim Hopkins, Gemini has grown from a single-site operation to a semi-national network, renowned for its dedicated customer relationships and innovative training and apprentice programmes.
Its repair process will further enhance Steer’s mutual client relationships and performance, developing and improving client experience delivery across the UK.
Tim Hopkins, CEO, said, “I would like to pass on my deepest gratitude to my incredible Gemini team for their unwavering hard work and loyalty. To our valued customers and insurers, thank you for your continuous support and trust. I am confident that Steer Group is the ideal successor for our business. Their commitment to investment and future-oriented plans ensures that you will all have long-term job security and exciting opportunities ahead.”
Dave Sargeant, Managing Director, and Phil Coleman, Finance Director, will remain with the business and join the Steer Leadership Team which will help to ensure a smooth transition and continuity of service.
Richard Steer, Chief Executive, added, “We are proud to welcome Gemini’s exceptional team into the Steer family. Gemini’s innovative repair proposition and steadfast dedication to outstanding service have set an industry benchmark. Their business model, which consistently delivers top-tier service to their valued clients, will greatly enhance our operational capabilities. This acquisition strengthens our commitment to service excellence across the UK, ensuring that we remain at the forefront of the automotive repair sector and continue to meet the evolving needs of our customers.”
Bodyshop, Environment, Finance, Insurance, Mobility, People, Salvage, Supplier, Technology, Training, Vehicle Repair, vehicle sales and Words
ARC360 conference proves major success
ARC360’s Future Vehicle Technology themed conference has been declared a major success. Bringing together over 250 of the motor claims sector’s leading professionals, the event provided an open forum for discussions around the evolution of the vehicle parc; technology advances and implications; business acquisition and growth; and ideas around future business models. Summaries of the discussions will be made available in the coming weeks.
Bodyshop Briefs
The Vella Grouphas taken its number of sites to 15 with more than 400 colleagues after announcing the acquisition of Stoke-based Brocksford Motors. Meanwhile, eight more of its sites have joined the AkzoNobel Sustainable Repair Network.
4 Elms Group has announced that it has achieved PAS 2060 certification for carbon neutrality for the fourth year in a row.
Two Coachwork Renovations apprentices have completed their Plastic Repair Training with Cornerstone Technologies.
Steer Automotive Group apprentices recently attended 3M as part of its Advanced Apprenticeship Programme, with the training course focusing on spot repair, plastic repair, colour contrast and advanced masking techniques.
Industry News
Charge Up: EV Quartly Insights
To provide valuable insights into this evolving market, Activate Group, the accident management specialist, is launching a quarterly EV report, utilising data from Gecko Risk. This report aims to offer comprehensive and up-to-date information on the latest trends and developments in EV repair, from average repair costs to cycle times.
Driven miles up in 2023
Trend Tracker has revealed that 330.8 billion miles were driven in the UK last year. Data from the Department of Transport has revealed that this is a rise of 2.2% on 2022 but remains 2.3% below the pre-pandemic levels seen in 2019.
New and used car markets hold steady
The latest Car Market Overview from cap hpi has revealed that both the new and used car segments are performing strongly.
Solera and Simplicity Car Care host Sustainability Summit
Simplicity Car Care and Solera Audatex joined forces on Tuesday in Toronto to host an inaugural Automotive Industry Sustainability Summit dedicated to paving a road to net-zero in the collision repair and auto claims economies.
BASF colour wins prestigious award
BASF Coating Division’s colour ZENOMENON was the only automotive paint to be honoured at the Red Dot Award: Product Design, one of the most prestigious design competitions in the world.
VRA membership growing
Nine new members, Altelium, Autograb, Aviloo, Equiniti, Golden Motor Group, National Vehicle Distribution, Rennicks, Wilsons Auctions and Zenith, have joined the Vehicle Remarketing Association so far this year.
London roads busiest in the world
London’s roads have been ranked the most congested in Europe for the third year in a row, with drivers in the capital spending an average of 99 hours sitting in traffic in 2023.
Hydrogen on the horizon
Venson Automotive Solutions has published a new report, The Big Hydrogen Question, exploring the role hydrogen can play in cleaner road transport.
Charles Trent celebrates gold
Charles Trent has won Gold in the Family Business category at the Poole Business Awards 2024.
Distrigo expands distribution network
The Distrigo Parts Distribution UK network has expanded with two new branches, Distrigo HTC Guildford and HTC Shoreham.
AX boosts EV transition with EValuate
AX has launched EValuate,a replacement vehicle service that offers ICE vehicle drivers the opportunity to try an EV for an extended period while their car is being repaired following an accident.
Motors completes Cazoo acquisition
Used car search platform Motors, which is backed by private equity, has acquired online car retailer Cazoo after it fell into administration.
Tchek.ai partners with Instavalo
Tchek.ai has enhanced its focus on AI with a new licensing agreement with German-based vehicle appraisal company Instavalo, which will manage its existing vehicle scanner customers.
Strategy and implementation equally critical
A new report by outsorc has examined the value of business strategy and implementation, concluding that one is not more important than the other and ‘a successful business requires a well-developed strategy and the capability to implement it effectively.’
UK motorists unsure about rules of driving abroad
New figures show that 46% of UK drivers have or would drive abroad yet 71% don’t know how the essential Green Card system works, according to a new YouGov survey by MIB.
VM News
JLR hires more than 1,500 veterans
JLR has hired more than 1,500 former armed forces personnel globally over the last decade, as the nation honours Armed Forces Week in the UK.
Rivian and VWG announce EV joint venture
Rivian Automotive has announced that Volkswagen Group will invest nearly £4bn to form an equally controlled and owned joint venture to create next-generation electrical architecture and best-in-class software technology.
Hyundai launches high-tech EV model
Hyundai Motor Company has unveiled its all-electric INSTER, with a top range of 220 miles and charging times to 80% of 30 minutes. The model also includes a range of ADAS features, such as Surround View Monitor, Parking Collision-Avoidance Assist Rear, Blind-spot View Monitor and Forward Collision-Avoidance Assist.
Polestar accelerates EV understanding
Polestar has considered the difference of accelerating in an EV compared to an ICE model in the latest in its series of technical features, ‘Explain it like I’m 5.’
People
Darren Keylock has been named Regional Support Manager at Motofix Accident Repair Centres.
Mick Callaghan has joined HB Accident Repair Network as new Production Manager.
Jim Odams has joined Autotech Group as Business Relationships Manager.
Auxillis has appointed Kelly Graham as Operations Director.
Direct Line Group has named Maz Brown as Group Chief Risk Officer.
Nissan President and CEO Makoto Uchida has received a CBE for services to UK/Japan business relations.
A1 ADAS Solutions has appointed Kieran Eastwood as Operations Manager.
Bodyshop, Environment, Finance, Insurance, Mobility, Salvage, Supplier, Technology, Vehicle Repair, vehicle sales and Words
EV pulse headlines
2024 new vehicle registrations – BMW challenges Tesla for EV market dominance
Average EV repair costs down 1.6% year on year
EV repair cycle times continue to fall from 2022 peak
Introduction
In the early days of the electric vehicle (EV) industry, the lack of comprehensive data posed significant challenges for fleets and insurers, making risk assessment and informed decision-making difficult. As the EV market has grown, we now have a richer level of data on EVs, and the costs associated with maintaining and repairing them.
To provide valuable insights into this evolving market, Activate Group, the accident management specialist, is launching a quarterly EV report, utilising data from Gecko Risk. This report aims to offer comprehensive and up-to-date information on the latest trends and developments in EV repair, from average repair costs to cycle times.
Electric Vehicle Market
There are more than 1.1 million EVs on UK roads, and 55% of these have been registered in the last two years.
This is a sector of the UK car parc that’s growing fast. Initially, this growth was driven by specialist manufacturers and early adopters like Tesla and Nissan. The Tesla model 3 is the UK’s most popular EV of all time, with 104,781registered on UK roads.
Top 5 EV manufacturers overall
More recently, high-end marques like BMW, Mercedes and Audi have been building market share, challenging Tesla’s dominance in the EV market.
Top 5 EV manufacturers 2024
James Fisher, CEO of Gecko Risk commented: “To date we have seen battery electric vehicle adoption being predominantly driven by fleets and those who can afford the luxury of owning high value vehicles. At Gecko we are interested to see how the demographic of EV drivers changes over the next few years with less expensive models due to hit the road from Chinese manufacturers like BYD and Great Wall Motors. With younger drivers behind the wheel of BEVs the risk in this subsector will continue to evolve and will require up to date analysis.”
EV Repair Cost Trends
Figures for the first five months of 2024 reveal that average EV repair costs have come down from their 2023 peak.
This data bucks a five-year trend that has seen the average EV repair cost rise steadily from £3,499 in 2019 to £4,149 in 2023.
To date, the average EV repair cost for 2024 is £4,084, down 1.6% when compared to 2023.
The reduction in EV repair costs is somewhat at odds with the market overall, as average repair costs for ICE vehicles continued to rise slightly in the first months of the year.
Adrian Furness, Managing Director of Motor Repair Network, Activate Group’s insurance division, said: “There has been a high level of investment in EV capability across the industry, creating repair availability. With increased capacity and a reduction in repair volume across all vehicle types, we may see more evidence of average repair costs leveling out or reducing over the coming months.”
Average EV repair cost breakdown
When we break down the cost of repairs, it’s clear that parts costs consistently represent the highest outlay.
Data from the last five years reveals that parts costs account for 44% of overall EV repair costs on average.
Interestingly, Tesla repair data does not follow this trend. Here, labour costs are consistently higher, accounting for 42% of the repair cost in comparison to 34% for parts.
Mark Hobson, Operations Manager for Activate Parts, Activate Group’s wholesale parts division, commented: “In general, EVs are packed with technology and made of lightweight materials that are more challenging to repair than traditional ICE vehicles. This, coupled with low availability of green and aftermarket EV parts, explains why parts account for a high proportion of the average EV repair cost.
“Tesla stands out because repairs are usually completed by main dealers and manufacturer approved repairers, where labour costs are significantly higher. In addition, Tesla does not readily offer parts discounts which makes it more economical for bodyshops to repair rather than replace a part if it’s safe to do so.”
EV Repair Times
Looking at the full cycle time from accident date to repair completion, we see that EV repair cycle times have fallen significantly over the last two years.
Gecko data reveals that the cycle time peaked in 2022 at 29 days and is tracking at an average of 23 days so far in 2024.
Adrian said: “This change is in line with the wider market, where there has been significant improvement in repair times across all vehicle types.
“This has been driven by investment in new, state-of-the-art repair capacity as found in our own Activate Repair sites. In addition, we are seeing higher excesses and an increased rate of write-offs, which have a knock-on effect on repair availability.”
Conclusion
The electric vehicle market in the UK is undergoing rapid growth, supported by investment in training and equipment across the vehicle repair industry.
Increased repair capacity and EV capability, coupled with a reduction in repair volume across all vehicle types is helping to stabilise repair costs and bring down cycle times.
With the increasing availability of comprehensive data, fleets and insurers can now make more informed decisions, enhancing their ability to manage risks and costs effectively.
Activate Group’s new quarterly EV report, powered by Gecko Risk data, aims to provide crucial insights and trends, supporting stakeholders in navigating this evolving landscape. As the EV sector continues to expand, staying informed will be key to leveraging the opportunities it presents.
Bodyshop, Environment, Finance, Mobility, People, Salvage, Supplier, Vehicle Repair and Words
The Vella Group has taken its number of sites to 15 with more than 400 colleagues after announcing the acquisition of Stoke-based Brocksford Motors.
Brocksford Motors is a family-run independent repairer that was established in 1960 and now managed by Mark Beech.
The news follows the Vella Group’s acquisition of Axiom’s two sites in April with the Group saying there will be further expansion this year.
Marc Holding, Managing Director of The Vella Group said: “We are delighted to announce the acquisition of Brocksford Motors, further expanding our footprint into the Staffordshire area and strategically connecting our North West sites to those in the Midlands.
“The business has been trading for over 65 years and has built a great reputation in the Stoke-on-Trent area thanks to its team and culture. We are confident that it will be an excellent addition to our group, and we look forward to working with Mark and the team going forward. This is an exciting addition to the Vella Group as we look to continue our recent growth via both targeted new builds and the right acquisition opportunities.”
Sue Hughes, previous owner of Brocksford Motors said: “We are pleased to have sold the business to The Vella Group. It was important to us to choose a new owner who would look after the people who have worked hard for us over many years, and The Vella Group has a great reputation in the industry for supporting its team members. We are sure that the business will go from strength to strength under this new ownership and wish them all the best for the future.”
Finance, Insurance, Mobility, People, Supplier, vehicle sales and Words
The latest Car Market Overview from caps hpi has revealed that both the new and used car segments are performing strongly.
New car registrations rose to 147,678 in May, an increase of 1.7% on the same month the previous year and continuing a 22-month streak of continued growth.
Fleet sales drove the growth, with private registrations falling by 12.9% in the month and down 11.3% in the year-to-date.
In terms of fuel types, the drive to meet the ZEV Mandate through discounts is accelerating demand, with plug-in hybrids (PHEVs) increasing by 31.5% in both the month and the year so far, pure hybrid electric vehicles up 9.6% in the month and 12.6% for the year, and battery electric vehicle sales increasing 6.2% and 12.6% respectively.
However, petrol models continue to dominate sales with a 55.9% market share, although this is down 2.1% on May 2023.
In the used car sector, the optimism that has been evident through the year so far continued into June with average prices down just 0.1% in the three-year, 60,000-mile category. Across the year though, values have increased by 0.2% at the three-year benchmark point.
Demand remains healthy, with diesels selling on average in 42 days, electric vehicles in 41 days, plug-in hybrids in 40 days and pure hybrids in 39 days. Meanwhile, petrol cars are sold on average within 37 days of being advertised.
However, behind the headline figures cap hpi notes that there are retail ‘sweet spots’ for electric vehicles priced below £18,000, with those in the three to five-year category selling in just 33 days. The key take away is that ‘if the price is palatable, BEVs will sell.’
The report said, “There is no reason to predict an end to the strong months experienced so far in 2024. July can often be similar to June, and this year we are not expecting downward moves anywhere near the averages. There is the possibility that there could be a slight average increase in values, but if not, a small movement down should occur, reflecting a positive market.”
