Industry Analysis & Industry Trends
The Motor Vehicle Manufacturing industry endured a bumpy ride during the economic downturn, although the industry is now well on the road to recovery. Consumer and business confidence were slightly unstable at the start of the period, while the pound depreciated, which affected the stability of industry revenue. Despite poor conditions, production rose significantly in 2010-11, supporting industry revenue, and this trend has continued over the past five years. A number of manufacturers have had considerable success exporting cars to developing countries, while domestic new car registrations have reached record levels. Overall, the industry is expected to grow at a compound annual rate of 6.8% over the five years through 2015-16 to reach £52.9 billion... purchase to read more
Industry Report - Starting a New Business Chapter
The most arduous barrier to entry for potential entrants is in the form of the high cost involved in building (or buying) a manufacturing plant. Plants are large due to high production volume and the production process requires highly technical and expensive machines. New entrants also face the task of accessing vehicle technology, complying with government regulations (especially environmental ones) and investing in research and development of new technology to keep up with the existing major players. A new player may have some difficulty doing so.
Having said that, these barriers have not stopped major international car companies from developing economies entering the industry... purchase to read more