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Published by: Key Note Publications Ltd
Published: May. 1, 2008 - 208 Pages
Table of Contents
- Executive Summary
- 1. Industry Overview
- REPORT COVERAGE
- REPORT BACKGROUND
- ECONOMIC TRENDS
- Gross Domestic Product
- Table 1.1: UK Gross Domestic Product at Current and
- Annual Chain-Linked Prices (¢Gm), 2003-2007
- Population
- Table 1.2: UK Resident Population Estimates
- by Sex (000), Mid-Years 2003-2007
- Inflation
- Table 1.3: UK Rate of Inflation (%), 2003-2007
- Unemployment
- Table 1.4: Actual Number of Unemployed Persons
- in the UK (million), 2003-2007
- Household Disposable Income
- Table 1.5: UK Household Disposable Income
- per Capita (¢G), 2003-2007
- MARKET SIZE
- By Value
- Table 1.6: The Apparent UK Market for Motor Vehicles and Components
- by Sector by Value (¢Gm at msp), 2003-2007
- Figure 1.1: The Apparent UK Market for Motor Vehicles and Components
- by Sector by Value (%), 2007
- By Volume
- UK Production
- Table 1.7: UK Production of Cars and Commercial Vehicles
- by Volume (000), 2003-2007
- New Registrations
- Table 1.8: New Registrations of Motor Vehicles in the UK
- by Sector (000), 2003-2007
- Number of Licensed Vehicles
- Table 1.9: Number of Licensed Motor Vehicles in Great Britain
- by Type (000), 2003-2007
- Contents Motor Industry
- ÆÉ Key Note Ltd 2008
- Sales of Used Vehicles
- Table 1.10: Number of Used Vehicles Sold in Great Britain
- by Type (000), 2003-2007
- MARKET SEGMENTATION
- Cars
- Commercial Vehicles
- Motorcycles, Mopeds and Scooters
- Motor Components
- INDUSTRY STRUCTURE
- Concentration
- Number of UK Businesses
- Table 1.11: Number of UK VAT-Based Enterprises in the Motor Industry
- by Sector, 2003-2007
- By Turnover
- Table 1.12: Breakdown of UK VAT-Based Enterprises in the Motor Industry
- by Sector by Turnover Sizeband (¢G000, number and %), 2007
- By Age of Business
- Table 1.13: Breakdown of UK VAT-Based Enterprises in the Motor Industry
- by Sector by Age of Business (number and %), 2007
- Employment
- Table 1.14: Breakdown of UK VAT-Based Enterprises in the Motor Industry
- by Sector by Employment Sizeband (number and %), 2007
- Regional Distribution of Motor Traders
- Table 1.15: Breakdown of UK VAT-Based Local Units in the Motor Trade
- by Region (number and %), 2007
- MARKET POSITION
- Vehicle Production
- Table 1.16: Global Production of Passenger Cars and Commercial Vehicles
- by Country by Volume (000 and %), 2006
- New Registrations
- Table 1.17: New Registrations of Passenger Cars in Europe
- by Country (000 and %), 2007
- KEY TRENDS
- General Motors and Toyota Share Top Spot
- Renault Set to Become the World¡¦s Third-Largest Vehicle Manufacturer
- Car Retailers Invest Overseas
- Diesel Cars Continue to Gain Sales
- LEGISLATION
- Second and Third Driving Licence Directives
- Vehicle Legislation
- KEY TRADE ASSOCIATIONS
- BIPAVER
- British Vehicle Rental and Leasing Association
- Freight Transport Association
- Motor Cycle Industry Association
- National Tyre Distributors Association
- Motor Industry Contents
- ÆÉ Key Note Ltd 2008
- Retail Motor Industry Federation
- Retread Manufacturers Association
- Society of Motor Manufacturers and Traders
- 2. PEST Analysis
- POLITICAL FACTORS
- CO2 Tailpipe Regulation
- Greater Respect Sought from Government for Powered Two-Wheelers
- EC Whole Vehicle Type Approval
- ECONOMIC FACTORS
- Central London Congestion Charge
- Call to Ban All ¡¥Gas Guzzlers¡¦
- Euro V Reduced Pollution Certificate
- London Low-Emission Zone
- SOCIAL FACTORS
- Growth in Road Traffic Slowing?
- More ¡¥Green¡¦ Cars to be Sold
- Tomorrow¡¦s Roads Safer for Everyone
- TECHNOGICAL FACTORS
- Use of Biofuels
- A Boost for Digital Radio
- Investment in Car Safety
- Ford Invests in CO2-Reducing Technologies
- 3. Consumer Research
- DRIVING-TEST APPLICATIONS AND PASS RATES
- Table 3.1: Number of Applications for Driving Tests
- by Type (000), Years Ending March 2005-2007
- Table 3.2: Driving-Test Pass Rates by Type of Test
- (%), Years Ending March 2005-2007
- NUMBER OF DRIVING LICENCES HELD
- Table 3.3: Number of Full Driving Licence Holders in Great Britain
- by Sex (million), 2003-2007
- PENETRATION OF DRIVING LICENCES
- Table 3.4: Penetration of Full and Provisional Driving Licences in Great Britain
- by Sex, Age and Social Grade (% of adults), 2007
- PENETRATION OF CAR OWNERSHIP
- Table 3.5: Penetration of Car Ownership in Great Britain
- (% of households), 2007
- AGE OF CAR
- Table 3.6: Age of Only Car or Most Recently Purchased Car
- (% of households), 2007
- Contents Motor Industry
- ÆÉ Key Note Ltd 2008
- INTENTION TO PURCHASE A CAR
- Table 3.7: Intention to Buy a Car in the Next 12 Months
- by Sex, Age and Social Grade (% of households), 2007
- Table 3.8: Intention to Buy a Car in the Next 12 Months ¡X
- New or Second-Hand (% of households), 2007
- Table 3.9: Intention to Buy a Car in the Next 12 Months ¡X
- First, Additional or Replacement (% of households), 2007
- Table 3.10: Intention to Buy a Car in the Next 12 Months ¡X
- Type of Car (% of households), 2007
- 4. Competitive Structure
- THE MARKETPLACE
- Motor-Vehicle Manufacturers
- Motor Dealerships
- Motor-Component Manufacturers and Distributors
- LEADING MOTOR-VEHICLE MANUFACTURERS
- Table 4.1: Selected Leading UK-Registered Motor-Vehicle Manufacturers
- by Turnover and Pre-Tax Profit (¢Gm), 2006/2007
- Ford Motor Company Ltd
- Volkswagen Group UK Ltd
- Honda Motor Europe Ltd
- Vauxhall Motors Ltd
- BMW (UK) Ltd
- Mercedes-Benz UK Ltd
- Toyota (GB) PLC
- Renault UK Ltd
- Peugeot Motor Company PLC/Citroen UK Ltd
- Nissan Motor (GB) Ltd
- Fiat Group Automobiles UK Ltd
- LEADING MOTOR DEALERSHIPS
- Table 4.2: Selected Leading UK-Registered Motor Dealerships
- by Turnover and Pre-Tax Profit (¢Gm), 2006
- Pendragon PLC
- Inchcape PLC
- Sytner Group Ltd
- Arnold Clark Automobiles Ltd
- Lookers PLC
- Jardine Motors Group UK Ltd
- LEADING MOTOR-COMPONENT MANUFACTURERS AND DISTRIBUTORS
- Robert Bosch Ltd
- Calsonic Kansei Europe PLC
- Denso Marston Ltd
- GKN PLC
- Halfords Group PLC
- NSK Europe Ltd
- Motor Industry Contents
- ÆÉ Key Note Ltd 2008
- PPG Industries (UK) Ltd
- Quinton Hazell Automotive Ltd
- Tomkins PLC
- TRW Ltd
- Unipart Group Ltd
- Wagon PLC
- MARKETING ACTIVITY
- Main Media Advertising Expenditure
- By Car Manufacturers
- Table 4.3: Main Media Advertising Expenditure by Car Manufacturers
- (¢G000 and %), Year Ending December 2007
- Table 4.4: Main Media Advertising Expenditure by Car Manufacturers
- by Type of Car (¢G000 and %), Year Ending December 2007
- By Motor Dealerships
- Table 4.5: Main Media Advertising Expenditure by Motor Dealerships
- (¢G000), Year Ending December 2007
- Exhibitions and Trade Shows
- 5. Cars
- DEFINITION
- KEY TRENDS
- MARKET SIZE
- Table 5.1: The Apparent UK Market for Cars
- by Value (¢Gm at msp), 2003-2007
- Figure 5.1: The Apparent UK Market for Cars
- by Value (¢Gm at msp), 2003-2007
- SUPPLY STRUCTURE
- UK Production
- Table 5.2: UK Production of Cars for the Home Market and
- Export Markets by Volume (number and %), 2003-2007
- New Registrations
- Table 5.3: New Registrations of Cars in the UK
- by Origin of Vehicle (number and %), 2003-2007
- Diesel-Engined Cars
- Table 5.4: New Registrations of Cars in the UK ¡X Diesel and
- Non-Diesel Vehicles (number and %), 2003-2007
- Private Cars and Company Cars
- Table 5.5: New Registrations of Cars in the UK ¡X Private and
- Non-Private Vehicles (%), 2003-2007
- The Most Popular Models
- Table 5.6: New Registrations of Cars in the UK ¡X the Top Ten Models
- (number and %), 2006 and 2007
- Sales of Used Cars
- Table 5.7: Sales of Used Cars in the UK ¡X the Top Ten Models
- (number and %), 2007
- Contents Motor Industry
- ÆÉ Key Note Ltd 2008
- Number of Companies and Employment
- Table 5.8: Number of Enterprises and Number of Employees Engaged in
- the Manufacture of Motor Vehicles in the UK, 2002-2006
- MAJOR PLAYERS
- Table 5.9: New Registrations of Cars in the UK by Manufacturer
- (number and %), 2006 and 2007
- Ford
- Vauxhall
- Volkswagen
- Peugeot/Citroen
- Renault
- BMW
- Toyota
- Honda
- Audi
- Mercedes-Benz
- Nissan
- Fiat
- Mazda
- Suzuki
- Volvo
- ADVERTISING AND PROMOTION
- Table 5.10: Main Media Advertising Expenditure on Cars by Manufacturer
- and Model (¢G000 and %), Year Ending September 2007
- BUYING BEHAVIOUR
- Car Ownership
- Table 5.11: Penetration of Car Ownership
- (% of households), 2004, 2005 and 2007
- By Sex and Age
- Table 5.12: Penetration of Car Ownership
- by Sex and Age (% of households), 2007
- Table 5.13: Profile of Car Owners by Age and Number of Cars Owned
- (% of households owning a car), 2007
- By Social Grade
- Table 5.14: Penetration of Car Ownership
- by Social Grade (% of households), 2007
- Table 5.15: Profile of Car Owners by Social Grade and Number of Cars Owned
- (% of households owning a car), 2007
- By Region
- Table 5.16: Penetration of Car Ownership
- by Region (% of households), 2007
- Table 5.17: Profile of Car Owners by Region and Number of Cars Owned
- (% of households owning a car), 2007
- FORECASTS 2008 TO 2012
- New Registrations
- Table 5.18: Forecast New Registrations of Cars
- in the UK (000), 2008-2012
- Motor Industry Contents
- ÆÉ Key Note Ltd 2008
- Market Size
- Table 5.19: The Forecast Apparent UK Market for Cars
- by Value (¢Gm at msp), 2008-2012
- 6. Commercial Vehicles
- DEFINITION
- KEY TRENDS
- MARKET SIZE
- Table 6.1: The Apparent UK Market for Commercial Vehicles
- by Value (¢Gm at msp), 2003-2007
- Figure 6.1: The Apparent UK Market for Commercial Vehicles
- by Value (¢Gm at msp), 2003-2007
- SUPPLY STRUCTURE
- UK Production
- Table 6.2: UK Production of Commercial Vehicles for the Home Market
- and Export Markets by Volume (number and %), 2003-2007
- UK Exports by Type of Vehicle
- Table 6.3: UK Exports of Commercial Vehicles
- by Type by Volume (number), 2002-2006
- New Registrations
- Table 6.4: New Registrations of Commercial Vehicles in the UK
- by Origin of Vehicle (number and %), 2003-2007
- By Type of Vehicle
- Table 6.5: New Registrations of Commercial Vehicles in the UK
- by Type of Vehicle (number and %), 2003-2007
- Number of Companies and Employment
- Table 6.6: Number of Enterprises and Number of Employees Engaged in
- the Manufacture of Commercial Vehicles in the UK, 2002-2006
- MAJOR PLAYERS
- Light Commercial Vehicles
- Table 6.7: New Registrations of Light Commercial Vehicles in the UK
- by Manufacturer (number and %), 2006 and 2007
- Heavy Commercial Vehicles
- Table 6.8: New Registrations of Heavy Commercial Vehicles in the UK
- by Manufacturer (number and %), 2006 and 2007
- Buses and Coaches
- Table 6.9: New Registrations of Buses and Coaches in the UK
- by Manufacturer (number and %), 2006 and 2007
- Selected Company Profiles
- Ford
- Vauxhall
- Citroen/Peugeot
- Volkswagen
- Daimler
- Renault
- Contents Motor Industry
- ÆÉ Key Note Ltd 2008
- Iveco
- Nissan
- PACCAR
- LDV
- Volvo
- ADVERTISING AND PROMOTION
- Table 6.10: Main Media Advertising Expenditure on Trucks by Manufacturer
- and Model (¢G000), Year Ending December 2007
- Table 6.11: Main Media Advertising Expenditure on Vans by Manufacturer
- and Model (¢G000), Year Ending December 2007
- BUYING BEHAVIOUR
- Light and Heavy Commercial Vehicles
- Buses and Coaches
- Commercial-Vehicle Ownership and Use
- By Sex and Age
- Table 6.12: Commercial-Vehicle Ownership and Use
- by Sex and Age (% of adults), 2007
- Table 6.13: Profile of Commercial-Vehicle Owners and Users
- by Sex and Age (% of adults owning/using), 2007
- By Social Grade
- Table 6.14: Commercial-Vehicle Ownership and Use
- by Social Grade (% of adults), 2007
- Table 6.15: Profile of Commercial-Vehicle Owners and Users
- by Social Grade (% of adults owning/using), 2007
- By Region
- Table 6.16: Commercial-Vehicle Ownership and Use
- by Region (% of adults), 2007
- Table 6.17: Profile of Commercial-Vehicle Owners and Users
- by Region (% of adults owning/using), 2007
- FORECASTS 2008 TO 2012
- New Registrations
- Table 6.18: Forecast New Registrations of Commercial Vehicles
- in the UK (000), 2008-2012
- Market Size
- Table 6.19: The Forecast Apparent UK Market for Commercial Vehicles
- by Value (¢Gm at msp), 2008-2012
- 7. Motorcycles, Mopeds and Scooters
- DEFINITION
- KEY TRENDS
- MARKET SIZE
- Table 7.1: The Apparent UK Market for Motorcycles, Mopeds and Scooters
- by Value (¢Gm at msp), 2003-2007
- Figure 7.1: The Apparent UK Market for Motorcycles, Mopeds and Scooters
- by Value (¢Gm at msp), 2003-2007
- Motor Industry Contents
- ÆÉ Key Note Ltd 2008
- Licensed Stock
- Table 7.2: Licensed Stock of Motorcycles in Great Britain
- by Engine Size (000), 2002-2006
- SUPPLY STRUCTURE
- New Registrations
- Table 7.3: New Registrations of Motorcycles and Mopeds
- in the UK, 2003-2007
- By Style of Vehicle
- Motorcycles
- Table 7.4: First Registrations of New Motorcycles in the UK
- by Style of Vehicle, 2003-2007
- Mopeds
- Table 7.5: First Registrations of New Mopeds in the UK
- by Style of Vehicle, 2003-2007
- The Most Popular Models
- Table 7.6: First Registrations of New Motorcycles in the UK
- by Manufacturer and Model (number and %), 2007
- By Style
- Table 7.7: First Registrations of New Motorcycles and Mopeds in the UK
- by Style, Manufacturer and Model, 2007
- Number of Companies and Employment
- Table 7.8: Number of Enterprises and Number of Employees Engaged in
- the Manufacture of Motorcycles in the UK, 2002-2006
- Table 7.9: Number of Enterprises and Number of Employees Engaged in
- the Sale, Maintenance and Repair of Motorcycles and Related Parts and Accessories
- in the UK, and Their Combined Sales (¢Gm), 2002-2006
- MAJOR PLAYERS
- Honda
- Yamaha
- Suzuki
- Piaggio
- Triumph
- Other Suppliers
- ADVERTISING AND PROMOTION
- Motorcycle Manufacturers
- Table 7.10: Main Media Advertising Expenditure by Motorcycle Manufacturers
- (¢G000), Year Ending December 2007
- Motorcycle Dealers
- Table 7.11: Main Media Advertising Expenditure by Motorcycle Dealers
- (¢G000), Year Ending December 2007
- Motorcycle Accessories
- Table 7.12: Main Media Advertising Expenditure on Motorcycle Accessories
- (¢G000), Year Ending December 2007
- BUYING BEHAVIOUR
- Ownership of Motorcycles, Mopeds and Scooters
- Contents Motor Industry
- ÆÉ Key Note Ltd 2008
- By Sex and Age
- Table 7.13: Ownership of Motorcycles, Mopeds and Scooters
- by Sex and Age (% of households), 2007
- Table 7.14: Profile of Motorcycle, Moped and Scooter Owners
- by Sex and Age (% of households owning), 2007
- By Social Grade
- Table 7.15: Ownership of Motorcycles, Mopeds and Scooters
- by Social Grade (% of households), 2007
- Table 7.16: Profile of Motorcycle, Moped and Scooter Owners
- by Social Grade (% of households owning), 2007
- By Region
- Table 7.17: Ownership of Motorcycles, Mopeds and Scooters
- by Region (% of households), 2007
- Table 7.18: Profile of Motorcycle, Moped and Scooter Owners
- by Region (% of households owning), 2007
- FORECASTS 2008 TO 2012
- New Registrations
- Table 7.19: Forecast New Registrations of Motorcycles, Mopeds and Scooters
- in the UK (000), 2008-2012
- Market Size
- Table 7.20: The Forecast Apparent UK Market for Motorcycles, Mopeds and Scooters
- by Value (¢Gm at msp), 2008-2012
- 8. Motor Components
- DEFINITION
- KEY TRENDS
- MARKET SIZE
- Table 8.1: The Apparent UK Market for Motor Components
- by Value (¢Gm at msp), 2003-2007
- Figure 8.1: The Apparent UK Market for Motor Components
- by Value (¢Gm at msp), 2003-2007
- Table 8.2: Import Penetration of the Apparent UK Market
- for Motor Components by Value (%), 2003-2007
- Overseas Trade
- Table 8.3: UK Imports and Exports of Motor-Vehicle Parts and Accessories
- by Region of Source or Destination by Value (¢Gm at msp and %), 2006
- SUPPLY STRUCTURE
- Number of Companies
- Table 8.4: Number of UK VAT-Based Enterprises Engaged in
- the Manufacture of Parts and Accessories for Motor Vehicles
- and Their Engines by Turnover Sizeband (¢G000), 2003-2007
- Employment
- Table 8.5: Number of Enterprises and Number of Employees
- Engaged in the Manufacture of Parts and Accessories for Motor Vehicles
- and their Engines, 2002-2006
- Motor Industry Contents
- ÆÉ Key Note Ltd 2008
- MAJOR PLAYERS
- GKN
- Pilkington
- Stadco
- TI Automotive
- Tomkins
- Unipart
- ADVERTISING AND PROMOTION
- Table 8.6: Main Media Advertising Expenditure on Motor Components
- by Category (¢G000), Year Ending December 2007
- BUYING BEHAVIOUR
- Sales of Used Vehicles
- Table 8.7: Number of Used-Vehicle Sales
- in Great Britain (000), 2003-2007
- MOT Tests
- Table 8.8: MOT Tests and Failures in Great Britain
- (million and %), Years Ending March 2003-2007
- Average Annual Mileage of Four-Wheeled Cars
- Table 8.9: Average Annual Mileage of Four-Wheeled Cars
- in Great Britain (miles), 2002-2006
- Average Annual Mileage by Drivers
- Table 8.10: Average Annual Mileage Driven
- by Sex (% of adults), 2007
- Purchasing of Car Accessories
- Table 8.11: Ownership of In-Car MP3 Players, Satellite Navigation Systems
- and Security Tracking Systems by Sex, Age, Social Grade and Region
- (% of adults), 2007
- Table 8.12: Purchasers of Car Tyres, Anti-Freeze, Car Polish,
- Car Batteries and Spark Plugs in the Last 12 Months by Sex, Age,
- Social Grade and Region (% of adults), 2007
- FORECASTS 2008 TO 2012
- Table 8.13: The Forecast Apparent UK Market for Motor Components
- by Value (¢Gm at msp), 2008-2012
- 9. A Global Perspective
- GLOBAL PRODUCTION OF MOTOR VEHICLES
- Table 9.1: Global Production of Passenger Cars and Commercial Vehicles
- by Country by Volume, 2004-2006
- Table 9.2: Global Production of Passenger Cars and Commercial Vehicles
- by Country by Volume (%), 2004-2006
- By Type of Vehicle
- Table 9.3: Global Production of Passenger Cars and Commercial Vehicles
- by Type by Volume, 2004-2006
- Passenger Cars
- Table 9.4: Global Production of Passenger Cars by Country
- by Volume (number and %), 2004-2006
- Contents Motor Industry
- ÆÉ Key Note Ltd 2008
- Light Commercial Vehicles
- Table 9.5: Global Production of Light Commercial Vehicles
- by Country by Volume (number and %), 2004-2006
- Heavy Truck
- Table 9.6: Global Production of Heavy Trucks by Country
- by Volume (number and %), 2004-2006
- Buses and Coaches
- Table 9.7: Global Production of Buses and Coaches by Country
- by Volume (number and %), 2004-2006
- EUROPEAN PRODUCTION OF POWERED TWO-WHEELERS
- Table 9.8: Production of Powered Two-Wheelers in Europe
- by Country by Volume (number and %), 2004-2006
- GLOBAL SALES OF MOTORCYCLES
- Table 9.9: Global Sales of Motorcycles
- by Region (000 and %), 2006
- NEW REGISTRATIONS IN EUROPE
- Passenger Cars
- Table 9.10: New Registrations of Passenger Cars
- in Europe, 2006 and 2007
- Motorcycles and Mopeds
- Table 9.11: New Registrations of Motorcycles and Mopeds
- in the EU27, 2004-2006
- Motorcycles
- Table 9.12: New Registrations of Motorcycles in the EU27
- by Country (number and %), 2004-2006
- Mopeds
- Table 9.13: Deliveries of New Mopeds in the EU27
- by Country (number and %), 2004-2006
- THE WORLD¡¦S LEADING MOTOR MANUFACTURERS
- Table 9.14: Global Production of Passenger Cars and Commercial Vehicles
- by Manufacturer by Volume (number and %), 2006
- 10. The Future
- THE ECONOMY
- Gross Domestic Product
- Table 10.1: Forecast Growth in UK Gross Domestic Product
- in Real Terms (%), 2008-2012
- Population
- Table 10.2: Forecast UK Resident Population
- by Sex (000), Mid-Years 2008-2012
- Inflation
- Table 10.3: Forecast UK Rate of Inflation (%), 2008-2012
- Unemployment
- Table 10.4: Forecast Actual Number of Unemployed Persons
- in the UK (million), 2008-2012
- Motor Industry Contents
- ÆÉ Key Note Ltd 2008
- FORECASTS 2008 TO 2012
- Table 10.5: The Forecast Apparent UK Market for Motor Vehicles and
- Components by Sector by Value (¢Gm at msp), 2008-2012
- MARKET GROWTH
- Figure 10.1: The Apparent UK Market for Motor Vehicles and
- Components by Value (¢Gm at msp), 2003-2012
- FUTURE TRENDS
- New Car Registrations Expected to Fall in 2008
- UK Vehicle Production Shows Further Strong Growth
- Pendragon Changes its Approach
- Honda Announces New Investment
- 11. Further Sources
- Associations
- General Sources
- Government Sources
- Other Sources
- Bisnode Sources
- Understanding TGI Data
- Number, Profile, Penetration
- Social Grade
- Standard Region
- Key Note Research
- The Key Note Range of Reports
AbstractThe apparent UK market for motor vehicles and components is estimated to have been worth £61.58bn in 2007 — a 4.4% increase on the 2006 value of £58.96bn. The market has experienced varying levels of annual growth since 2003, but it grew by a total of 12.1% over the review period.
Four sectors are examined in this Market Review: cars; commercial vehicles; motorcycles, mopeds and scooters; and motor components. The cars sector is the largest by far in terms of value, but motorcycles, mopeds and scooters was the fastest-growing sector of the market between 2003 and 2007.
The UK motor-manufacturing sector, which is highly export-oriented, had a good year in 2007, with car production increasing for the first year since 2003 and commercial-vehicle production reaching its highest level since 1997. The future security of UK motor manufacturing has been boosted by news that Honda is to invest a further £80m in its plant at Swindon, while Nissan is to expand its Sunderland workforce to increase output of the Qashqai.
The motor-retailing sector, however, had a difficult year in 2007. Although the number of new car registrations was higher than in 2006, consumer demand for nearly new cars dwindled in the face of rising interest rates. As a result, the car market became progressively more competitive and pressure was put on used-car margins. Some of the leading motor retailers responded by closing less profitable dealerships or disposing of some of their UK businesses in order to invest in fast-growing overseas markets.
In 2007, new UK registrations of motorcycles and mopeds reached their highest level since 2003. People are increasingly identifying motorcycles and mopeds as a cost-effective form of transport and part of the solution to the pressures on the environment. The positive impression of motorcycling given by the television series Long Way Down, featuring Ewan MacGregor and Charley Boorman, may also have contributed to the upturn in the market.
The apparent UK market for motor vehicles and components is expected to be affected by slowing economic growth and weakening consumer confidence in 2008. New registrations of cars are projected to fall, although new registrations of commercial vehicles could show a further small rise. The current buoyancy of the motorcycle, moped and scooter market may also be maintained in 2008, and the market for motor components, including replacement parts, is expected to remain relatively strong. UK production of cars and, in particular, commercial vehicles could see a further rise.
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