What has vehicle exporting been like in recent months? Vladimir Boltach, UK and European Director for F-AVTO at Autoparts Ltd discusses how his company has been dealing with vehicle exports over the past six months since Brexit.
Our company has been exporting used car parts successfully from Europe, the US and Japan to Belarus, Russia and Kazakhstan since 1994.
It has been six months since the UK left the EU. When the decision to leave the EU won the vote, one of the benefits highlighted during the debate was that once the UK leaves, the trade with the rest of the world would become easier for businesses in the UK as negotiation could be done on its own terms. However, as we quickly found out, the trade with the EU has become more problematic for some industries, if not all, as the businesses had to learn fast how to adjust the operations and paperwork trail to ensure compliance with the new customs rules and regulations.
As mentioned in the previous article in ATF Professional, our business had experienced some difficulties in doing exports from the UK in the early part of the year. We had to implement some changes in our paperwork trail and administration to ensure that the used car parts we ship from the UK to Belarus and Russia can be sent through the EU with all the required documents to avoid delays and fines.
Working with suppliers from various countries has provided us with valuable experience and expertise to find the best solutions in such circumstances and make exports from the UK work. Even though some challenges still exist when trying to organise the first export sale of used car parts and consequential shipment to the buyer, the benefits and opportunities of doing exports are clear to see:
- Access to new markets create an opportunity to expand the existing customer base
- Diversification of sales (domestic vs exports). Some vehicle makes and models have more potential to generate higher revenue elsewhere in the world depending on which country/continent exports are made
- Ability to sell more used car parts with a quicker turnaround. Used car parts which might have been kept on the shelves for quite some time because of the saturated domestic market could sell fast in the new markets in other parts of the world
- Very few or no returns (unlike domestic sales)
For Autoparts Ltd, we are one of the leading exporters to the Belarus and Russian markets and have now established a distribution network around the region delivering used car parts to numerous clients every day. We are continuously improving our systems at work and have adjusted our operations to implement changes that Brexit brought with minimum disruption for our suppliers. Moreover, we offer a safe route for suppliers based in the UK willing to sell to a new market. We buy used car parts, load them on our wagons, do all the required paperwork for export and take care of customs in the UK, EU, Belarus and Russia ensuring used car parts are delivered safely and on time.
What makes and models do we normally buy for export? What are the most desirable vehicles in our part of the world?
It must be mentioned that commercial vehicles are in high demand at the moment. We have put a top-10 list of what we have exported the most from the UK this year in conjunction with what our extensive customer base is looking to buy right now:
- Nissan Navara 2006-… 2.5TDI, 3.0TDI (Auto gearbox are of very high demand)
- Hyundai i40 2012-… 1.7CRDi
- BMW X3 and X5 2000-… 2.0D, 2.5D, 2.5i, 3.0D, 3.0i, 4.6i
- Iveco Daily 2001-… 2.3D, 3.0D, 2.8D, 2.5D
- Mercedes Benz E-Class 2002-… 2.2CDI, 2.7CDI, 3.0CDI, 3.2i, 2.8CDI
- VW Transporter 1999-… 1.9TDi, 2.5TDI, 2.0D, 2.5i
- Ford Transit 1998-… 2.5D, 2.4TD, 2.2TD, 2.0TD
- Mercedes Benz Sprinter 1997-… 2.2CDI, 2.7CDI, 2.9CDI, 3.0CDI
- Kia Cee’d 2006-2016 1.4i, 16i, 1.6TDi
- Vauxhall Astra 2007-… 1.4i. 1.6i. 1.8i, 1.7TDi
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