Industry Analysis & Industry Trends
The Motor Vehicle Manufacturing industry has been recovering quickly thanks to considerable success exporting cars to developing countries, and soaring domestic new car registrations supported by growing consumer confidence, cheap financing deals and rising disposable incomes. Overall, the industry is expected to grow at a compound annual rate of 4.6% over the five years through 2016-17 to reach £55.4 billion. Industry profitability has also increased over the past five years as a result of falling steel and fuel prices and the effects of a strengthening pound on input prices.
The industry is expected to grow by 3.8% in 2016-17, despite widespread uncertainty due to the result of the EU referendum... 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. Tat.. purchase to read more