How the European Car Parts Shortage is Hitting the UK Taxi and Private Hire Trade

The global car parts shortage is affecting industries far and wide, but few feel the strain as acutely as the UK’s taxi and private hire sector.

For many drivers, delays in repairs and rising costs for even the simplest fixes are becoming a nightmare.

The crisis stems from multiple factors: disrupted supply chains, the shift to electric vehicles (EVs), and competition from cheaper Chinese manufacturers. As fleets struggle to maintain their vehicles, the impact on the trade is substantial and could get worse.

The Car Parts Crisis Explained

The shortage of car parts is a direct result of several global events. Pandemic-related lockdowns disrupted manufacturing, particularly in regions like China and the Middle East, where many components are produced.

The conflict in Ukraine has worsened things, particularly with parts like semiconductors, which are critical for modern vehicles. All of this has created a bottleneck in production, leaving garages struggling to find essential parts.

But there’s more at play. Many European car manufacturers, including industry giants like Volkswagen, have been pouring resources into electric vehicle production to meet growing environmental mandates. This shift has significantly reduced the production of parts for petrol and diesel vehicles, further exacerbating the shortages.

As a result, taxi and private hire drivers are left in limbo, with repair wait times soaring and costs mounting.

For instance, shortages of TXE and TX4 parts have become a common complaint among drivers. Some items, like injectors and hoses, are as rare as “rocking horse poo,” and there are waves of unavailability for other critical parts like track rod ends.

This is far from a taxi-only problem. Private hire drivers, especially those using popular models like Kias are facing the same issue. These vehicles are being left off the road for weeks, with main dealers unable to provide even a timeline for when parts might be available.

The situation is so dire that some insurers are choosing to write off vehicles for minor damage rather than foot the bill for extended courtesy car use while waiting for repairs.

The Knock-On Effect: Financial and Operational Burdens

For drivers, time off the road means lost earnings, a significant issue in a trade where margins are already tight.

Fleets and rental companies are similarly affected, with vehicles sitting in garages for weeks on end. The financial burden doesn’t stop there. The rising costs of MOTs and general servicing, due to inflated part prices, are adding to the strain on the trade. Some drivers are now facing the tough choice between expensive, delayed repairs or leaving their vehicles out of commission.

As the secondhand market feels the pressure, demand for vehicles with good parts availability, such as those from VW, Audi, and Skoda, is rising. These brands share common platforms, making parts more accessible. But for those with models like Jaguar Land Rovers or Kias, the future looks bleak, with parts shortages likely to persist.

Insurance Woes: Write-Offs Over Repairs

One of the most significant ripple effects of the parts shortage is being felt in the insurance sector.

Many insurance companies are increasingly writing off vehicles because the cost of providing courtesy cars for extended periods, along with storage fees and administrative expenses, outweighs the cost of repairing the vehicle. In fact, car premiums have risen by as much as 40% in the last year, driven in part by the rising cost of write-offs.

It’s a vicious cycle, where drivers are left out of pocket due to factors far beyond their control.

Looking Ahead: A Trade at a Crossroads

The shortage has forced the taxi and private hire industry to rethink how it operates. With repair delays mounting and costs rising, many are looking for alternative solutions. Some garages are turning to "green parts," recycled or non-branded components, to fill the gap.

These parts are cheaper and more readily available, but they come with their own set of risks, especially when considering warranties and vehicle integrity.

At the same time, the push for electric vehicles is not slowing down. While EVs could eventually offer a solution to the parts crisis, they remain prohibitively expensive for most drivers, and the infrastructure for charging them is still lacking, particularly in rural areas where taxis and private hire vehicles are essential.

The UK government’s zero-emissions mandate is adding pressure, as car manufacturers focus on electric models, leaving traditional vehicles—and the parts needed to keep them running—behind.

The car parts shortage has left the UK taxi and private hire trade in a precarious position. For drivers and fleet operators, the future is uncertain, with rising repair costs, longer downtime, and a secondhand market struggling to meet demand. While the push toward electric vehicles may eventually provide a path forward, the transition is slow and expensive. In the meantime, the industry needs solutions—whether that’s embracing green parts, lobbying for policy changes, or rethinking how to maintain an aging fleet.

The road ahead may be bumpy, but for now, the focus remains on keeping the wheels turning, however possible.