Industry Analysis & Industry Trends
Soaring fuel prices sent Britons away from fuel-inefficient, petrol-run cars and towards smaller diesel-run vehicles. The consumer shift damaged manufacturers, as the majority of cars 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 government's scrappage incentive scheme encouraged some new car sales, but it was not enough to offset the severe demand decline... purchase to read more
Industry Report - Industry Products Chapter
Diesel and petrol cars
Motor vehicle manufacturers derive the majority of their revenue from the production of petrol and diesel cars. Petrol-run cars account for 48.7% of revenue while diesel-run cars account for 29.5%. During the recession, the production of petrol and diesel cars declined due to the severity of the downturn. Over the past five years, the demand for vehicles has shifted from petrol-run cars to diesel-run cars. However, diesel-vehicle manufacturers have yet to catch up to this trend. Although diesel cars' share of revenue has risen over the past five years, it has not increased at the same pace as the growth in domestic demand for diesel-run vehicles.
One reason for this is that about 75.0% of cars manufactured domestically are exported... purchase to read more