European Exhaust and Catalyst asses what’s shaping the aftermarket

Last year brought developments for the trade, from the future of the internal combustion engine to intensifying technological complexity. For the emissions aftermarket, these changes carry particular weight. European Exhaust and Emissions Commercial Director, Paul Newby, assesses where the sector stands and what lies ahead.

Is it me, or does each year seem to fly by faster and faster? It doesn’t seem a year ago since I last sat down in a quiet room forlornly attempting to write something of interest from what is arguably a rather dry subject matter for most.

Looking back to last year, those of you with the fortitude to have trudged through the opening paragraphs of last year’s unending monologue would have been met with narrative about the government pulling forward the race to Net Zero along with phasing out the sale of vehicles with internal combustion engines (ICEs) by 2030. I wonder how that is panning out…

To us, this subject is of paramount importance. Unlike many other automotive component sectors, such as braking, rotational products etc, our business in its current form is largely dependent on the existence of the internal combustion engine, so please forgive me if I focus the remainder of this article around that and the wider emission market theme. Nevertheless, our direction in 2026 may be of interest to our customers and most likely, our competitors… hello guys!

There has been a shift in the European narrative around the future of the internal combustion engine, essentially led by Germany, a country that appears to have awoken from its slightly complacent slumber in the wake of the influx of low-cost EVs of unexpectedly commendable quality, against which they’re unlikely to compete. In a strange juxtaposition, we find ourselves in a similar predicament to the gargantuan VMs whereby we stand at a critical juncture, caught between the current (pardon the pun) inexorable push towards electrification and the practicalities of industry and infrastructure.

At the time of writing in December 2025, all indications are that the internal combustion engine – and, therefore, manufacturers and the supply chain – may be given a reprieve until at least 2040. I’m confident VMs across Europe would breathe a sigh of relief, while us mere mortals within the realm of the automotive aftermarket would also be thankful – a choice that would provide us with additional lifeblood and longevity. The path ahead, though, would be as challenging as before.

What are the challenges?

One of the most significant challenges is the increasing complexity of OE products we’re required to reverse engineer to keep our product portfolio current and relevant. The days of a simple assembly of an inlet pipe, catalyst and outlet pipe are long gone. Today, systems are becoming exceptionally complex with separate pollution control devices dedicated to a specific function, intricate internal designs that manipulate gas flow that must be replicated precisely, intricate presswork, bespoke cross-sectional shapes and advanced sensor integration to name but a few special characteristics that cannot be deviated from without compromise.

This leads to an important realisation: meeting the needs of the entire aftermarket may be difficult for any single manufacturer to achieve alone, given the breadth of product technologies and certification requirements involved.

Of course, obstacles in life are often numerous, and can arise from various sources; some of which are within one’s control, yet others are not. Someone clever chap infinitely more intelligent that I once said: “The pessimist complains about the wind, the optimist expects it to change, but the realist adjusts the sails.” That’s exactly the ethos we have while facing such challenges.

Last year proved to be a pivotal year for us; much energy was applied to bolstering our supply chains, development stratagems and strategic partnerships, ultimately enabling us to bring a record number of new parts to range, many of which are currently unavailable anywhere else in the aftermarket.

Naturally, the challenges listed thus far are generally within our own control and to that end, we are the masters of our own destiny, success or demise; however, there remains the unforeseen challenges over which we have no control: the world is in an increasingly unpredictable state, and we’re all suffering the consequences of increases in the costs of food, energy, fuels and commodities both personally and professionally.

With each new generation, pollution control devices contain increasing amounts of active materials both PGM (Platinum Group Metals) and non-PGM. Platinum, palladium and rhodium all increased in price dramatically throughout 2025, with platinum being at a 12-year high at the time of writing, with much of the influence emanating from China; with the price of gold hitting an all-time high in October of 2025, investors are seemingly turning to platinum, hiking the price in the process.

Compounding the situation is the scarcity we see with some of the materials. South Africa and Russia lead the world with PGM deposits; output in South Africa is reportedly down by 5%, while the situation in Russia remains unpredictable.

Other headwinds include the industrial energy costs that remain significantly higher in the UK than any of our European counterpart countries, a considerable amount of this cost lies with the UK’s Net Zero aspirations. Who knows, perhaps next year we can reflect upon some positive changes in that area too.

Staying with the challenges beyond our control, a special mention has to relate to the influx of product from China. If you spend as much time navigating your way through the UK traffic as I do, you may have noticed that the car parc is changing. Being born not too many years ago with four-star running through my veins might sound like a contradiction, but for as long as I can remember, I’ve been a self-confessed petrol head, proud to be able to identify almost every car on the road from a young age – but today? Although I can still identify many of the more ubiquitous models, there’s an increasing number of cars and brands that I no longer immediately recognise.

I’d be fascinated to meet the marketing teams who decided that names like XPeng G6 and ORA Good Cat would resonate aspirationally – however good the cars themselves may be. And that’s the point…! We’ve recently added a Jaecoo 7 to our fleet and, despite some annoying foibles, it’s rather good; in fact, it’s been one of the UK’s bestsellers for several months, so the industry really ought to learn something from its success. For us, this model, along with all the other new marques, presents significant future opportunity.

On the flipside, we’re also seeing a rise in lower-cost pollution-control devices – cats, DPFs, SCRs and GPFs – entering the market from a range of overseas sources. In some cases, products are listed without the necessary type-approval documentation, which raises questions about compliance and suitability for sale in the UK and Europe.

Much of this category of product is sold online, and some of it is available from UK-based sellers. Fortunately, the DVSA is responsible for policing these matters, and we work closely with them to highlight examples where appropriate. When installing any pollution-control device, technicians should ensure they purchase from reputable suppliers that provide certified products from established manufacturers.

Enough of the negative stuff!

For us, this year will be a continuation of the same theme. We’re exceptionally proud of what we achieved in 2025, and we’ll be building upon the successes we achieved by bringing the best possible customer service, the widest array of new and unique parts to range backed up by technical support that genuinely is the best in the industry.