SMTA Monthly Bulletin January 2023

Your monthly news round-up of the Scottish Motor Industry

JANUARY 2023

MOT CONSULTATION

As you will no doubt be aware, The Department for Transport has commenced consultation on proposed and potential changes to the MOT Scheme.

The consultation covers many aspects, including but not limited to:

y Changes to the MOT Test (i.e. Test Content & Equipment)

y When the first MOT Test should be carried out (i.e. first test after 4 years instead of 3)

y Frequency of subsequent MOT Tests (i.e. every second year instead of every year)

y MOT Test Fees

The consultation is open until 01 March 2023 and the final outcome could have a significant effect on your business, whether or not you own or operate an MOT Testing Station.

As you would expect, The Scottish Motor Trade Association will be responding on behalf of our members. However, we encourage anyone with strong views on this subject to also respond in order to make those views known.

We would also be happy to receive your comments as it helps us to make sure that our response accurately reflects the views of our members. You can do that by sending your comments by email to david.innes@smta.co.uk

The approved insurance broker to the Scottish Motor Trade Association

MOT JOINT SEMINARS 2023

Bringing you the latest updates direct from the DVSA

DUNDEE

Tuesday 21st March, Best Western Invercarse Hotel, Dundee, DD2 1PG

GLASGOW

Tuesday 28th March

GTG, 1330 South St, Glasgow G14 0BJ

SMTA Member & Dingbro User

£19 Per Person

ABERDEEN

Wednesday 22nd March Village Hotel, Kingswells, Aberdeen AB15 8PJ

EDINBURGH

Wednesday 29th March

GTG, Lochend Ind. Estate, Newbridge EH28 8PL

PRICES

SMTA Member only or Dingbro User only

£23 Per Person

INVERNESS

Thursday 23rd March

Kingsmill Hotel, Inverness IV2 3LP

PERTH

Thursday 30th March

Huntingtower Hotel, Perth PH1 3JT

Non SMTA Member or Non Dingbro User

£30 Per Person

Seminars start at 6pm with refreshments and light buffet included in the ticket price

PLACES ARE LIMITED - BOOK YOUR TICKETS NOW! BOOK ONLINE AT BIT.LY/MOT-SEMINARS OR SCAN THE QR CODE WITH A SMART DEVICE

THE INDEPENDENT SERVICE PROVIDERS URGE THE EUROPEAN COMMISSION TO END THE DELAY ON ACCESS TO IN-VEHICLE DATA LEGISLATION

A vast majority of the automotive and mobility services ecosystem together with consumers urge the European Commission to urgently propose an effective sector-specific legislation on access to in vehicle data

The Independent Service Providers (ISPs) grouping have written to President van der Leyen and the relevant College of Commissioners to put an end to the repeated delays in proposing legislation on access to in vehicle data, functions and resources. Doing so would unleash the untapped potential to create real competition in Europe's datadriven automotive and mobility markets.

The ISP Group commented: "The Commission committed to bringing forward access to in-vehicle data legislation in December 2020 by the end of 2021. We're now in 2023 and the proposal has been delayed yet again. Despite six years of painstaking Commission evidence-gathering and previous strategic policy plans, the vast majority of the sector are left in limbo and investment decisions are delayed in the face

of substantial market barriers that benefit just one segment of a potentially huge market. We urge the Commission President to get this process back on track. This legislation is vital to unblock the automotive and mobility services sector market. Almost every European uses some form of mobility every day and they should be able to enjoy the benefits of data-driven innovation, choice and afford ability in the automotive and mobility ecosystem. Today they can't. The Commission must rectify this.

FCA HIGHLIGHTS AREAS OF FOCUS FOR CONSUMER DUTY RULES

to put that right and for them to show they are acting in the spirit of the new Duty.

“Firms will also see the benefits of the Duty, with increased trust in the sector, more flexibility to innovate and in time fewer rule changes.”

The rules come into force on 31 July 2023 for new and existing products or services that are open to sale or renewal, and 31 July 2024 for closed products or services.

Sheldon Mills, Executive Director of Consumers and Competition at the FCA, said: ‘The Consumer Duty will bring about a step change in the way financial services firms treat their customers and we welcome the work firms are doing to implement it.

“Given the scale of the reform, we recognise that some firms need to make significant changes. For firms which are further behind in making the necessary changes, there is time

The new Consumer Duty rules set higher and clearer standards of consumer protection across financial services and require firms to put their customers’ needs first.

The Duty is made up of an overarching principle and new rules firms will have to follow. It will mean that consumers should receive communications they can understand, products and services that meet their needs and offer fair value, and they get the customer support they need, when they need it.

THE FCA WANTS FIRMS TO FOCUS ON:

Prioritising: Firms should make sure they are

prioritising effectively, with a focus on the areas that will make the biggest impact on outcomes for consumers.

Making the changes needed: The FCA urges firms to ensure they are making the changes needed so consumers receive communications they can understand, products and services that meet their needs and offer fair value, and they get the customer support they need, when they need it.

Working with other firms: Firms need to share information and work closely with their commercial partners to make sure they are all delivering good customer outcomes. The FCA has found that some firms need to accelerate this work to implement the Duty on time.

The Financial Conduct Authority (FCA) has found that some firms are behind in their planning for the new Consumer Duty rules.

OPINION: CHINESE EV BRANDS WILL 'SHAKE-UP' AFTERSALES WITH INDEPENDENT SERVICE PARTNERS

Independent garages and service providers set to challenge the SMR norm as China bolsters the UK electric vehicle (EV) market.

‘With the pressure to move into manufacturing only zero emissions vehicles inside a decade, changes to the infrastructure and market for electric vehicles (EVs) have accelerated rapidly.

In response to the UK’s high aspirations, more manufacturers are looking to join the UK EV market, including companies based in China, such as BYD, DFSK, Skywell and Zeekr.

The influx is increasing competition by adding new, affordable EV models to the UK market as well as challenging the aftersales model by working with independent garages and service providers to offer high quality nationwide coverage.

COMPETITION FOR MARKET LEADERS

BYD (Build Your Dreams) in particular is introducing models that will rival some of the most popular EVs on UK roads.

The Seal is set to take on the Tesla Model 3 and Hyundai Ioniq, while the Atto 3 is a family SUV to rival the Kia e-Niro, Nissan Qashqai, VW ID.3 and the MG 4.

A good number of these vehicles are built on modular e-platforms, suitable for multiple configurations and vehicle sizes.

So where does this leave us in relation to the skills needed to undertake their servicing, maintenance and repair?

AFTERMARKET COMPETITION

Although franchised dealers currently dominate EV aftermarket, now is the time for independent garages to not only muscle in but take ownership of this space. Indeed, new entrants have been quick to recognise the role nationwide networks of independent dealerships and garages can play, offering immediate regional coverage without the usual investment or time required to set up a dealership network.

Innovation Automotive, the UK and European distributor for DFSK and Skywell has recently joined forces with Halfords Autocentres to provide nationwide service, maintenance and repair (SMR), alongside warranty administration, through MotorEasy.

Bringing together a network of garages in this way helps ensure garages are fully approved and EV-trained, while warranty solutions meet the specific demands of EV ownership, including coverage for batteries. Cont/…. Working in partnership not only speeds up entry to market, but also improves the customer experience.

THE ROAD AHEAD

Whilst EV take up is accelerating, and infrastructure is improving rapidly, there is still a long road to travel before the 2030 deadline, to ensure drivers are confident to make the switch from ICE to EV.

For a successful transition the infrastructure must be in place – not just for charging at home and on the road, but also for SMR.

Potential EV drivers need to know that if they make the switch, it will be simple and convenient to keep their vehicle professionally serviced, maintained and repaired whatever the badge of car they choose to drive.

As the UK Government’s ‘Road to Zero’ 2030 deadline approaches and the market continues to change, more manufacturers will look to enter the UK market.

Independent garages and aftermarket service providers are perfectly placed to work in partnership with market challengers to increase competition, improve service provision for customers and ultimately reduce the environmental impact of vehicles on UK roads.

Author: Duncan McClure Fisher, Chief Executive of Intelligent Motoring

Read the full article at AM Online

AUCTIONS REPORT EVS UNDER PRESSURE IN STRONG USED CAR MARKET

Electric vehicle values continue to come under pressure in January in an otherwise ‘very strong’ market.

Spokesman for the National Association of Motor Auctions (NAMA) Paul Hill said its members are optimistic and expect the market to remain stable but added that EV values continue to fall, down 4% in January. Separately, BCA said there continued to be “particular pressure” in the used EV market in December with some models seeing “significant pricing corrections” throughout the month.

The market for trade cars below £3500 is particularly popular among auctioneers, with some members reporting record physical attendance and their highest volumes sold since August 2021.

Similarly, to 2022, cars between £3,500 and £15,000 have good conversions. Whilst

over £15,000 products are strong, appetite is gradually fading from consumers in comparison to previous months.

The commercial vehicle market is down on volumes compared to expectations, in turn helping to maintain values at a strong level. This can be attributed to reports suggesting that some manufacturers are cutting their supply of new vehicles to daily rental companies.

The one area of the market that continues to be under pressure is Electric Vehicles, with values continuing to fall. On average, cars in this sector have eased by 4% since the start of the year. It is important to note, however, that EVs make up a small proportion of the overall market which means the drop in their

THE IMI LAUNCHES AUTOMOTIVE DIVERSITY NETWORK

EDI advocates urged to join forces, collaborate and accelerate positive change

Focused on driving diversity in the automotive sector, the Institute of the Motor Industry (IMI) has launched the Automotive Diversity Network. Its creation provides the unique opportunity for Equity, Diversity and Inclusion (EDI) leaders and advocates to come together to network and share EDI practices and protocols and help the sector overcome the challenges it faces.

The move is the latest initiative from the IMI’s Diversity Task Force, launched in 2021 to address the root causes behind the lack of diversity which is compounding the sector’s current skills shortage.

By examining three of the largest underrepresented groups within the automotive workplace - Race and Ethnicity, Physical and Non-visible Disabilities and Gender and Sexual Orientation - the Diversity Task Force mapped the EDI landscape to understand the actions and support needed to accelerate change. Its first Diversity Task Force Report, published in March 2022, was the catalyst for stimulating continued industry wide debate. It has now led to the IMI forming the Automotive Diversity Network, open to members and non-members.

Read more here

values is having little impact on the market as a whole.

Paul Hill added: “Expectations in the industry is that new car volumes are likely to increase in 2023, particularly for some manufacturers that are experiencing an ease in their supply chains, this should mean there will be more readily stock available for auctions.”

Used car demand followed seasonal patterns and remained steady during most of December, however there was a definite lift in interest through the festive season as BCA reported the busiest trading period on record between Christmas and New Year.

Read the full article at Motortrader

Robert Simpson, Westhill Service Station

It is with sad news that we announce the death of longstanding SMTA member Bob Simpson. Bob owned Westhill Service Station in Aberdeen.

Funeral service to be held at Skene Parish Church, on Wednesday, February 1, at 11am, thereafter to Skene Cemetery.

SMTA would like to send its consoldences to Robert's family.

MOT FORECAST VOLUMES FEBRUARY 2023

TRADE SNIPPETS

Almost 80% of car buyers willing to switch brands to avoid waiting times

Article courtesy of AM Online

Used EV prices fall by nearly £5,000 during Quarter 4

Article courtesy of Motortrader

Ben invites automotive community to apply for London Marathon 2023 and fundraise to support colleagues

Bank of England governor: UK recession won’t be as bad as first feared

Article courtesy of CarDealer Magazine Read More Here

BYD ready for UK launch with five dealer partners

Article courtesy of AM Online

New van deliveries down in November but market looks to rebuild

Article courtesy of SMMT

LATEST CAR FIGURES

MARQUES YTD

DON’T FORGET TO BOOK YOUR MOT TRAINING & ASSESSMENT FOR 2022/23

The SMTA in conjunction with the IMI continues to provide availability of online learning and examination for MOT Testers for DVSA's 2022/23 training year.

Some of the areas you will need to study for Groups A and B include:

y Brake Test Procedures.

y MOT Test Procedures.

y Managing your MOT account/continuing professional development (CPD).

y MOT Inspection Manual.

WHAT YOU NEED TO DO

1. Do at least 3 hours of MOT tester training each year and 16 hours in 5 years.

2. Keep a record of your training.

3. Book and take your assessment.

4. Check your assessment provider has uploaded your assessment results.

If you pass the assessment, you’ll get a certificate. You’ll find this in the ‘Annual assessment certificates’ section of your MOT testing service profile. Contact your assessment provider if your results have not been recorded correctly.

If your results have not been uploaded by the end of the training year, your MOT testing account will be suspended.

YOUR TRAINING AND ASSESSMENT MUST BE COMPLETED BY 31ST MARCH 2023

To book please email nicola.thomson@smta.co.uk

SMTA member price - £52.00 (plus vat)

Non-member price - £60.00 (plus vat)

(Once payment received you will receive a code and instructions to complete this online)

WOULD YOU LIKE YOUR GARAGE TO FEATURE IN SMTA’S MAGAZINE?

SMTA produces a quarterly magazine to all our members, if you haven’t got one yet our Territory Account Managers will be visiting your garage soon with a copy for you.

If you’d like your garage to feature please contact: karen.thompson@smta.co.uk

SMTA CONTACTS

MEMBERSHIP ENQUIRIES/ TRADING PARTNERS:

Norman Stirling – 07917 095014

Membership Development Manager

Marcus Lawrence – 07375 057561

Territory Account Manager, Western Region

Stuart Kennedy – 07375 057560

Territory Account Manager, Northern Region

MOT QMS ENQUIRIES

David Innes – 07789 264228

Operations Manager, Support Services

Colin Meldrum – 07917 042576

Support Services Consultant

Gordon Laing – 07799 732124

Support Services Consultant

APPRENTICE TRAINING ENQUIRIES

Fraser Miller – 07789 264229

Apprentice Training Manager

Kevin Millar – 07593 800386

Kickstart Gateway Project Manager

EMPLOYMENT LAW ENQUIRIES

Moira Gaynor – 0141 331 5150

Company Secretary/Finance Manager

SCOTSURE WARRANTY:

Lynn Greig – 07597 581335

Scotsure Account Manager, Scotland

Claims and Enquiries – 0131 331 5512

EVENTS & MEDIA ENQUIRIES:

SAVE THE DATE

We are delighted to announce that the next dinner is being held on Thursday 26th October 2023 at Hilton Glasgow. Details of our 2023 guest speaker to be announced at a future date.

This bulletin is kindly supported by

Karen Thompson – 07922 079889

Events & Media Manager

ADVERTISING/SPONSORSHIP ENQUIRIES:

Wendy Hennessy – 07974 380140

Scottish Motor Trade Association Ltd., Palmerston House, 10 The Loan, South Queensferry EH30 9NS

SMTA Ltd Tel: 0131 331 5510

www.smta.co.uk

SMTA is proud to support: