A bumpy ride: Subdued economic conditions limit demand and weigh on industry revenue

The industry performed strongly at the start of the five-year period through 2018-19. Rising incomes and low fuel prices encouraged motorists to purchase new cars, with new car registrations reaching record levels in 2016. Cheap finance deals, the wider availability of new technologies in new cars and the improved fuel economy offered by new models all contributed to the industry's performance. However, falling consumer confidence and business capital expenditure due to economic uncertainty have caused new car sales to fall significantly since. Total new car registrations declined by 5.7% in 2017 according to the Society of Motor Manufacturers and Traders (SMMT), with diesel fuel types particularly affected...read more.

Industry Statistics & Market Size
Revenue
£118bn
Annual Growth 14-19
1.6%
Forecast Growth 19-24
Profit
Employment
109,255
Businesses
9,224

Industry Threats & Opportunities

  • Petrol-electric hybrid vehicles and pure-electric cars are expected to become more popular
  • Some companies have cut costs while others have left the industry altogether
  • Sales of plug-in vehiclesare expected to growover the next five years
  • Industry Report - Industry Investment Chapter

    Capital intensity is moderate, as the industry has a capital-to-labour ratio of 1:4.08. This means for every £1.00 spent on capital, approximately £4.08 is spent on labour. To calculate this spending ratio, wage costs are used as a proxy for labour while depreciation is used as a proxy for capital. Depreciation on buildings and assets, such as showroom fixtures, tends to be relatively low. This is similar for labour, despite its importance. Retail industries tend to be labour intensive because customer service is important for success. Staff are required to sell cars and provide after-sales service, and wages also go to administrative and finance staff. How...purchase to read more.

    Additional Insights for the New Car & Light Motor Vehicle Dealers Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the New Car & Light Motor Vehicle Dealers Industry are

  • Provision of superior after sales service
  • Ability to control stock on hand
  • Guaranteed supply of key inputs
  • IBISWorld analysts also discuss how external factors such as Real household disposable income and Consumer confidence index in the New Car & Light Motor Vehicle Dealers industry impact industry performance..

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    What's in this report

    What is the New Car & Light Motor Vehicle Dealers Industry?

    Companies in this industry sell new cars and other light motor vehicles to consumers. Wholesalers that sell directly to fleet markets are included in the industry. The vehicles sold include passenger cars, SUVs, specialised vehicles such as ambulances and any other vehicles weighing less than 3.5 tonnes. The sale of used vehicles is not included in the industry.

    Industry Products
  • Hatchbacks
  • Saloons
  • Estates
  • Sports cars
  • Four-wheel drives and SUVs
  • Other light motor vehicles
  • Industry Activities
  • Selling new cars
  • Selling new light commercial vehicles
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Real household disposable income
  • Consumer confidence index
  • Fuel prices
  • New car prices
  • Business capital expenditure

  • Current Performance
  • Decelerating sales
  • Green growth and diesel decline
  • Unprofitable performance
  • Chart: Revenue Growth

  • Industry Outlook
  • Slippery prospects
  • Fuelling concern
  • Method of delivery
  • Electric prospects
  • Financing deals
  • Table: New Car & Light Motor Vehicle Dealers Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - New Car & Light Motor Vehicle Dealers Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Taxi Operation
  • Car Rental & Leasing
  • Consumers

  • Key Selling Industries
  • Freight Road Transport
  • Motor Vehicle Manufacturing

  • Products & Services
  • Hatchbacks
  • Saloons
  • Other light motor vehicles
  • Four-wheel drives and SUVs
  • Estates
  • Sports cars
  • Chart: New Car & Light Motor Vehicle Dealers Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private individuals
  • Fleets
  • Businesses
  • Chart: Major Market Segmentation for the New Car & Light Motor Vehicle Dealers Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesOther costs
  • Chart: Cost Structure Benchmarking – Sector vs New Car & Light Motor Vehicle Dealers

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the New Car & Light Motor Vehicle Dealers Industry

  • Industry Globalization
    Volkswagen Group United Kingdom Ltd,
  • Table: Volkswagen Group United Kingdom Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the New Car & Light Motor Vehicle Dealers Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the New Car & Light Motor Vehicle Dealers Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Alternative Fuel Vehicle (Afv)
  • A vehicle that can be run on a combination of petrol and electricity, petrol and alcohol, petrol and gas or on electricity alone.
  • Light Motor Vehicle
  • Motor vehicles that weigh up to 3.5 tonnes. Some minivans fall into this category.
  • Sports Utility Vehicle (Suv)
  • A light motor vehicle that usually has four-wheel drive capability.
  • Supermini
  • A hatchback style car. They are larger than small urban cars but smaller than family cars and have a relatively powerful engine.
  • Ultra Low Emission Vehicle (Ulev)
  • A vehicle that typically has around 90% less emissions than an average vehicle.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s New Car & Light Motor Vehicle Dealers market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on New Car & Light Motor Vehicle Dealers:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The New Car & Light Motor Vehicle Dealers market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on New Car & Light Motor Vehicle Dealers, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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