Stuck in neutral: Falling new car registrations cause revenue to fall despite earlier increases

The Motor Vehicle Manufacturing industry performed well for much of the past five years, thanks to considerable success exporting cars to emerging economies and soaring domestic new car registrations. These factors were supported by strong consumer confidence, cheap financing deals and rising disposable incomes. However, the industry took a wrong turn in 2017, when production declined by 3% according to the Society of Motor Manufacturers and Traders (SMMT). A period of economic uncertainty dented consumer confidence, while air quality concerns decimated demand for diesel vehicles. Overall, revenue is forecast to expand at a compound annual rate of 0.7% to reach £53 billion over the five years through 2018-19.Revenue is expected to fall by more.

Industry Statistics & Market Size
Annual Growth 14-19
Forecast Growth 19-24

Industry Threats & Opportunities

  • Industry revenue has expanded overall despite recent declines in car manufacturing
  • Manufacturers have responded to rising environmental concern by launching hybrid cars
  • The rapid rise of car sharing in Europe is changing attitudestowards car ownership
  • Industry Report - Industry Key Buyers Chapter

    The Motor Vehicle Manufacturing industry has a moderate level of concentration and the top four players are expected to account for 54.7% of industry revenue in 2018-19. Furthermore, the eight largest players are forecast to account for 69.2% of revenue in the current year. These players control the majority of the industry, with most of the remaining companies controlling small shares. However, no player truly dominates the industry because the industry is highly globalised and manufacturers face significant import competition, sometimes from their own plants located in other countries.In 2008, Ford sold Land Rover and Jaguar to Tata Motors, which led to a decline in Ford's market share. Since then, Jaguar Land Rover has expanded the production of Jaguar and Land Rover models. The...purchase to read more.

    Additional Insights for the Motor Vehicle Manufacturing Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Motor Vehicle Manufacturing Industry are

  • Economies of scale
  • Optimum capacity utilisation
  • Guaranteed supply of key inputs
  • IBISWorld analysts also discuss how external factors such as Business confidence index and Consumer confidence index in the Motor Vehicle Manufacturing industry impact industry performance..

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    What's in this report

    What is the Motor Vehicle Manufacturing Industry?

    Companies in this industry manufacture and assemble motor vehicles. Motor vehicles include passenger cars and commercial vehicles, such as lorries. They also include buses and special-purpose vehicles like snowmobiles and fire engines. Businesses also make motor vehicle engines and vehicle chassis.

    Industry Products
  • Engines and rebuilding
  • Petrol cars
  • Diesel cars
  • Commercial vehicles
  • Special purpose and all other vehicles
  • Industry Activities
  • Car
  • Lorry
  • Bus
  • All-terrain vehicle
  • Fire engine
  • Motor vehicle engine
  • Chassis
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business confidence index
  • Consumer confidence index
  • Real effective exchange rate
  • Demand from new car and light motor vehicle dealers
  • Fuel prices

  • Current Performance
  • Overseas sales
  • Trends driving sales
  • Changing gear
  • Chart: Revenue Growth

  • Industry Outlook
  • Stalling production
  • Electric demand
  • Parts for profit
  • Eco-friendly future
  • Table: Motor Vehicle Manufacturing Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Motor Vehicle Manufacturing Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • New Car & Light Motor Vehicle Dealers
  • Motor Vehicle Parts Wholesaling
  • Freight Road Transport

  • Key Selling Industries
  • Motor Vehicle Parts & Accessories Manufacturing
  • Trailer, Caravan & Motor Vehicle Body Manufacturing

  • Products & Services
  • Petrol cars
  • Diesel cars
  • Engines and rebuilding
  • Special purpose and all other vehicles
  • Commercial vehicles
  • Chart: Motor Vehicle Manufacturing Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private individuals
  • Fleet and business markets
  • Other
  • Goods transport market
  • Chart: Major Market Segmentation for the Motor Vehicle Manufacturing Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Motor Vehicle Manufacturing

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Motor Vehicle Manufacturing Industry

  • Industry Globalization
    Jaguar Land Rover Automotive plc, Nissan Motor Manufacturing (UK) Ltd, Vauxhall Motors Ltd, Bayerische Motoren Werke AG,
  • Table: Jaguar Land Rover Automotive plc - financial performance
  • Table: Nissan Motor Manufacturing (UK) Ltd - financial performance
  • Table: Vauxhall Motors Ltd - financial performance
  • Table: Bayerische Motoren Werke AG - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Motor Vehicle Manufacturing 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 Motor Vehicle Manufacturing Industry
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Exports (2010-2024)
  • Imports (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Alternative Fuel Vehicles (Afv)
  • Vehicles that run on alternative power, such as petrol-electric, petrol-alcohol, electric only and petrol-gas.
  • Electric Vehicle
  • A vehicle with an electric battery that can be recharged in a wall socket and does not need petrol or diesel to run.
  • Factory Rebuilding
  • Overhauling an engine using new and used parts by the manufacturer or an entity approved by the manufacturer.
  • Hybrid Vehicle
  • A vehicle that runs on an electric battery and an internal combustion engine. Hybrid vehicles are more fuel efficient compared with their standard internal combustion counterparts.
  • Powertrain
  • The mechanism that transmits the drive from the engine of a vehicle to its axle.
  • Sport Utility Vehicle (Suv)
  • A four-wheel drive vehicle built on a truck chassis.
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    Why buy this report?

    The Motor Vehicle Manufacturing market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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 Motor Vehicle Manufacturing:
    • 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 Motor Vehicle Manufacturing 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 Motor Vehicle Manufacturing, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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