Industry Analysis & Industry Trends
The past five years have not been easy for the New Car and Light Motor Vehicle Dealers industry. Industry revenue is expected to fall at an annualised 5.1% over the five years through 2012-13 to reach £84.7 billion. New car demand slowed as high fuel prices drove consumers away from cars to public transport. As a result, the non-replacement market moved fast towards saturation point. At the same time, car technology improved, lengthening the life of new vehicles and leading to longer replacement cycles. Consequently, the replacement market also slowed down.
In the aftermath of the global downturn, car sales crashed due to lower incomes, poor business and consumer confidence, higher unemployment and difficulty in obtaining financing... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The industry is in the decline phase of its life cycle. The industry's contribution to the economy (industry value added) is underperforming the economy. Industry valued added is expected to decline by an annualised 4.1% per annum over the 10 years through 2017-18. Meanwhile, the British economy is expected to grow with GDP forecast to increase at an annualised 1.0% over the 10 years through 2017-18. Enterprise numbers is also in decline as the industry reduces its size to meet lower demand for new cars and light vehicles. However, dismal profit since the recession exacerbated the industry's poor value added performance.
The non-replacement car market stalled over the past five years... purchase to read more