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 UK Government pulling forward the race to Net Zero along with phasing out the sale of vehicles with internal combustion engines 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 centre 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!

Unless you have conspiracy theorist tendencies with a tinfoil hat and subscribe to a complete media blackout, you’ll see a shift in the European narrative around the future of the internal combustion engine essentially led by Germany who appear to have finally awoken from their 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 vehicle manufacturers 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.

As I sit here in a lonely boardroom, all indications are that the internal combustion engine (and therefore manufacturers and supply chain) may be given a reprieve until at least 2040. I’m sure the vehicle manufacturers across Europe will undoubtedly breathe a sigh of relief and for us mere mortals within the realm of the automotive aftermarket, we can be thankful that the decision is likely to provide us with additional lifeblood and longevity, but the path ahead will be as challenging as before.

Of the challenges we face in the aftermarket emission sector, one of the most significant is the increasing complexity of the original equipment 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. All of this comes with a realization and that realization is that the investment and resource required to satisfy the whole of the aftermarket is likely beyond the reach of any of the current crop of aftermarket manufacturers in isolation, the proliferation of different product technologies and certification requirements are just too great. 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” and that’s exactly the ethos we have while facing such challenges. 2025 has proven to be a pivotal year for us where much energy has been 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 have 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% and the less said about Russia the better. 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 may sound like a clumsy contradiction, but from as early 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 there’s a problem… although I can still identify many of the “white goods” cars (sincere apologies go out to all Tesla drivers), there’s an increasing number of cars and brands that I can’t identify. I’d love to spend some time with the marketing team who conclude that “XPeng G6” and “ORA Good Cat” translate to aspirational nomenclature however good their cars are. And that’s the point…! We’ve recently added a Jaecoo 7 to our fleet and despite some annoying foibles it’s really rather good. In fact, it’s been one of the UK’s Top 10 sellers 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 see an influx of pollution control devices – Cats, DPFs, SCRs, GPFs flooding in from China. The majority of this product carries no type approval certification, has questionable integrity and is illegal for sale in both the UK and Europe. Much of the product is sold online and an alarming amount of it is available from sellers within stock based in the UK. Thankfully, we have the DVSA to police such matters and we’re in frequent dialogue to highlight instances of such product hitting the market. When installing any pollution control device, always ensure you purchase from a reliable, trustworthy source who provide appropriately certified products from established manufacturers.

Anyway, enough of the negative stuff. If you’re still with me, 2026 for us will be a continuation of the same theme. We’re exceptionally proud of what we’ve achieved in the last year and we’ll be building upon the successes we achieved in 2025 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.

On behalf of us all at European Exhaust & Catalyst Ltd. we wish you the absolute best of health and prosperity for 2026.