2012-05-17 07:32:22 - New Transportation market report from Business Monitor International: "United Kingdom Autos Report Q2 2012"

Renewed optimism in the vehicles production segment in the UK could be making way for a gradual revival of the local supplier segment and the UK's automotive production hub status. Nissan Motor's commitment to invest an additional GBP125mn into its Sunderland plant adds to a slew of commitments made by exiting carmakers Jaguar Land Rover, Toyota Motor and Honda and has prompted BMI to forecast autos production in the UK to reach 1.65mn units a year by 2016, up nearly 52% compared with 2009.

The growth in the production segment is likely to be inclusive and broad-based as is evident from the growing optimism in the supplier segment. French automotive supplier Financiere SNOP Dunois (FSD) Group has revealed plans to make

Sunderland a new base for auto parts production in the UK, in a move which will see the company investing GBP5mn towards remodelling the factory previously owned by US engineering firm TRW Systems, and shut almost two years. Similar confidence was visible in Milwaukeebased supplier of components Charter Automotive's plans to acquire a new production plant in Burntwood to increase its European operations and tyre manufacturer Michelin plans to upgrade its production facility in Dundee.


Full Report Details at
- www.fastmr.com/prod/384867_united_kingdom_autos_report_q2_2012.a ..


Things, however, look less optimistic from the point of view of domestic sales. BMI believes increases in fuel duty, road tax and company car tax, as revealed by Chancellor George Osborne in his budget, could put downside risks to our already-cautious forecast of a less than 3% year-on-year (y-o-y) increase in new vehicle sales on average during 2012 and 2016. The Federal Transport Association (FTA) estimates that the GBP0.302 hike in fuel duty from August 2012 alone will increase the average cost of truck operations by close to GBP1,200 per vehicle each year, acting as a major discouragement for businesses to expand their fleet. By far the biggest damage will come to the fleet segment, which in 2011 accounted for a massive 52.5% of the total cars sold in the UK and stood as the outperformer in the overall new vehicle sales market. With the view to push sales of environmentally friendly cars, the budget has called for the company tax on vehicles emitting more than 75gm/km of carbon to be increased by a percentage point to a maximum of 35% in FY 2014/15. This is to be followed by a two percentage point rise to a maximum of 37% in FY2015/16 and FY2016/17.

However, we expect the UK to be well positioned to make a significant contribution to the hydrogen fuel cell vehicles (FCVs) segment in the medium to long term through the UK H2 Mobility project - a high-profile consortium formed by the British government, 13 international carmakers, auto supplier Johnson Matthey and utility companies - in January 2012.

Report Table of Contents:

SWOT Analysis
- UK Autos Industry SWOT
- UK Political SWOT
- UK Economic SWOT
- UK Business Environment SWOT
Global Overview
- Eurozone And EMs Pose Risks To 2012 Growth Outlook; US And Japan On The Rise
- Table: Passenger Car Sales (Units), January-December 2011
Regional Overview
- EU-India FTA: Boon For European Carmakers
- Table: Europe - Top Automotive Suppliers Sales By Region (US$mn), 2010
Industry Risk/Reward Ratings
- Poor Show From Western Europe Hurts Region's Score In BMI Ratings
- Table: BMI Industry Risk/Reward Ratings For Autos In Europe
Macroeconomic Forecast
- Table: United Kingdom - Economic Activity
- Industry Forecast Scenario Domestic Sales
- Table: UK Autos Sector - Sales
- Table: UK Autos Sector - Production
- Trade
- Table: UK Autos Sector - Trade
- Economic Contribution
- Table: UK Auto Sector - Economic Contribution
Market Overview
- Industry Analysis
- Hydrogen Car Project: More Of A Road Map For The Future
- Table: Government Support For Fuel Cell Vehicles
Passenger Cars - Forecast & Analysis
- Table: United Kingdom Autos - Passenger Car Segment
- Key Players
- Table: UK - Top 10 Players In New Passenger Cars Segment, 2010/2011
- Table: Passenger Car Sales
- New Investment
Commercial Vehicles - Forecast & Analysis
- Table: United Kingdom Autos - Commercial Vehicle Segment
- Segment Trends
- Key Players
- Table: UK - Top 10 Players, Light Commercial Vehicle Sales, 2010/2011
- The UK's medium commercial vehicle market (vehicles weighing more than 3.5 tonnes but less than six tonnes)there remains good potential for demand in the medium commercial vehicle segment. In view of this, Renault Trucks, owned by the Volvo Group, has reaffirmed its long-term plans for growth and investment in the UK
- Table: UK - Medium Commercial Vehicle Sales, 2010/2011
- Table: UK - Top 10 Players, Heavy Commercial Vehicle Sales, 2010/2011
- Buses And Coaches
- Table: UK - Buses and Coaches Sales, 2009/2010
- Company News
Motorcycles - Forecast & Analysis
- Table: United Kingdom Autos - Motorcycle Segment
Suppliers - Analysis
Company Profiles
- Ford Motor
- Vauxhall Motors
BMI Methodology
- How We Generate Our Forecasting Model
- Sources

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