The industry returns to growth after struggling during the financial crisis
London, United Kingdom (PRWEB) July 27, 2012
The past five years were not 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. According to IBISWorld industry analyst Aries Nuguid, “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”. The government intervened by providing a car scrappage incentive to boost new car sales. However, the incentive was not enough to offset the downturn's effects on vehicles sales.
Nuguid adds, “the shift towards more fuel-efficient vehicles will continue over the next five years, and petrol-electric hybrid vehicles and pure electric cars are expected to become more popular”. Government policies and subsidies will support demand for alternatively fuelled vehicles. IBISWorld expects industry revenue to return to growth over the five years through 2017-18.
The top four major players account for about 20% of industry revenue, which gives the New Car & Light Motor Vehicle Dealers industry a low level of market share concentration. Major companies include Volkswagen Group UK and Honda Motor Europe.
For more information on the New Car & Light Motor Vehicle Dealers industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.
IBISWorld industry Report Key Topics
Companies in this industry sell new cars and other light motor vehicles to end consumers. Wholesalers that sell directly to fleet markets are included in this industry. Vehicles sold include passenger cars, SUVs, jeeps, specialised vehicles (such as ambulances) and any other vehicles weighing less than 3.5 tons. The sale of used vehicles is not included in this industry.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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