Youness Louarradi, owner of Motor RGS, shares the story behind his venture into motorcycle recycling and the strategic focus on supplying quality used motorcycle and scooter parts. From humble beginnings fueled by a passion for motorcycles to navigating the industry’s intricacies, Louarradi’s journey exemplifies resilience and innovation. Discover how Motor RGS is reshaping the landscape of motorcycle recycling while addressing the evolving needs of enthusiasts worldwide.
ATF PRO: How did your passion for motorcycles influence your specialisation in motorcycle recycling, and could you share the backstory of RGS Motors?
YL: When my brother and I arrived in the UK, our bond over motorcycles was the glue that kept us going. For us, motorcycles weren’t just vehicles; they were our projects, our passion. We’d invest hours in tweaking, modding, and even flipping them. Soon, we became the guys that friends would approach for motorbike advice.
Now, there’s a misconception about motorbike parts. Many believe new is best, but from our experience, quality used parts offer brilliant reliability at a fraction of the price. As friends ventured into setting up garages, we saw an opportunity further afield in Morocco. The demand there was palpable.
Initially, we began by buying bikes and exporting to Morocco. However, we quickly noticed a trend here in the UK. People weren’t just looking for bikes; they sought after parts. Recognising this demand, we pivoted.
Three years on, our passion project has evolved into Motor RGS, a growing motorcycle recycling enterprise right here in the UK. Our journey began with a simple shared enthusiasm for bikes, and today, it’s so much more than that. It’s about understanding market needs, adapting, and driving forward.
ATF PRO: When you embarked on the journey of motorcycle recycling, what obstacles did you encounter, especially in sourcing bikes for recycling?
YL: Embarking on the journey with Motor RGS while still at university was, in itself, a significant challenge. Trying to juggle academic commitments with setting up a business was no small feat. But perhaps the most formidable obstacle was navigating the environmental agency’s licensing process. The expenses associated with it were daunting, especially for us back then. Moreover, coming from Morocco, where bureaucracy isn’t as intricate, understanding and working through the UK system was a steep learning curve.
After obtaining the licence and setting things in motion, I grappled with the extensive regulatory paperwork. I must admit I made several mistakes during the early days. It reached a point where I had to make a pivotal decision – so I chose to leave my Engineering degree and dedicate myself entirely to my passion.
ATF PRO: Your primary focus is exporting motorcycle parts to Morocco. Could you elaborate on what prompted this decision and what factors make Morocco an attractive market for your products?
YL: My roots in Morocco play a significant role in our focus on exporting motorcycle parts there. In Morocco, the love for bikes isn’t just a hobby; it’s deeply embedded in our culture. Consequently, there’s a robust demand for parts. A significant portion of Morocco’s motorbike industry relies on imports from Europe. However, the supply often falls short of the demand. This gap means that individuals are often prepared to pay a premium for parts that would otherwise be inaccessible. It was recognising this need, paired with my personal connection to Morocco, that steered our primary focus towards exporting to this market.
ATF PRO: How does the approach to motorcycle usage and maintenance in Morocco differ from that in the UK?
YL: The approach to motorcycle usage and maintenance in Morocco and the UK is largely shaped by the two countries’ economic differences. In Morocco, given the import-reliant nature of the market and the not-so-strong aftermarket presence, combined with generally lower incomes, the trend leans towards repairing. It’s often more cost-effective and time-efficient to repair a motorcycle due to the lower labour costs. Moreover, choosing to repair often trumps waiting for a part to be shipped from overseas.
On the other hand, in the UK, the scenario is quite different. With higher average incomes and a broader market offering various options for repairing and replacing, it’s often seen as more convenient and efficient to replace a motorcycle part rather than going through the repair route. It reflects the market dynamics and consumer preferences shaped by the respective economic environments.
ATF PRO: As you only recycle motorbikes, what challenges do you face, and how easy is obtaining them?
YL: Motorcycles, by nature, represent a niche when compared to the vast automotive market. This brings about its own set of challenges. For starters, sourcing a consistent and high-quality batch of bikes for recycling can be quite a task. Our dealings with category B vehicles further complicate matters as it often restricts our ability to inspect bikes thoroughly before acquisition. As a result, we’ve had to roll the dice numerous times, leading to a mix of both rewarding outcomes and lessons learned.
Currently, we’re in the process of identifying and forging partnerships within the industry. Given the larger scale and potentially higher returns, we recognise that many recyclers gravitate towards cars. However, we’re positioned to handle what many might shy away from – the motorcycle segment. We’re eager to collaborate with those who see the value in what we offer, creating symbiotic relationships where we can manage the motorcycle recycling niche they might not want to delve into.
ATF PRO: Could you provide insight into the current annual volume of motorcycles you dismantle? Do you have plans to increase this quantity or expand into dismantling cars?
YL: As a fairly young entrant in the industry, we’ve been making our mark steadily. At present, our annual operations involve dismantling around 350 motorcycles. We’re actively forging new partnerships and seeking avenues to further our reach. Our vision encompasses growing not just within the UK but also in our export ventures.
In terms of future expansion, we have our eyes set on acquiring a larger site to augment our capacity. And while there’s potential to diversify into car dismantling, our current strategy is to master our core domain – motorcycles. Once we’ve streamlined our processes and solidified our foothold, we’ll look towards integrating cars into our portfolio. But for now, our prime focus remains on what we know best.
ATF PRO: Finally, could you shed light on your inventory management and stock control processes?
YL: Our inventory management is anchored in a bespoke internal process we’ve developed. Each part is meticulously shelved based on its origin, meaning which specific motorcycle it was sourced from. This method ensures a structured approach and aids in quickly identifying parts when needed.
However, with our inventory expanding and the business growing, we’re actively exploring integrating a more sophisticated inventory management system. This will not only enhance efficiency but also ensure that as our team grows, everyone remains aligned and operates from a unified platform.
Visit RGS Motors or call 01273 493990.
