Industry Analysis & Industry Trends
Soaring fuel prices sent Britons away from fuel-inefficient, petrol-run cars and toward smaller diesel-run vehicles. The consumer shift hurt manufacturers as the majority of cars still produced are the more traditional and less fuel-efficient vehicles. However, this trend alone does not explain the 23.6% fall in industry revenue over 2009-10.
The main culprit for this disastrous performance was the recession. When the financial crisis hit, business and consumer confidence plummeted. Sales to businesses and individuals plunged as customers became more wary of unnecessary spending. The 'cash for bangers' incentive scheme encouraged some new car sales, but it was not enough to offset the severe demand decline. Export markets were also dismal as the financial crisis was global... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Motor Vehicle Manufacturing industry is in the decline stage of its life cycle. The industry's contribution to the economy (industry value added) is expected to remain almost unchanged over the 10 years through 2018-19. Meanwhile, the UK economy is expected to grow at a compound annual rate of 1.3% over the same period. This means the industry's economic contribution is shrinking in proportion to the rest of the economy. Consequently, the industry is estimated to be in the decline stage of its life cycle.
The number of establishments is forecast to fall at a compound annual rate of 7.2% over the 10 years through 2018-19. Establishments are decreasing as the industry consolidates into larger scale operators. Furthermore, the industry faces growing import competition... purchase to read more