Motor Vehicle Manufacturing in the UK Industry Market Research Report Now Updated by IBISWorld

London, United Kingdom (PRWEB) December 06, 2012

Soaring fuel prices sent Britons away from fuel-inefficient, petrol-run cars and toward smaller diesel-run vehicles. According to IBISWorld industry analyst Aries Nuguid, the consumer shift hurt Motor Vehicle Manufacturing industry as the majority of cars still produced are the more traditional and less fuel-efficient vehicles. However, this trend alone does not explain the 23.7% fall in industry revenue over 2009-10. The main culprit for this disastrous performance was the recession. When the financial crisis hit, business and consumer confidence plummeted. Sales to businesses and individuals plunged as customers became more wary of unnecessary spending. Demand from major export markets such as the United States, Germany and Belgium fell. Manufacturers had no choice but to reduce production drastically.

Conditions have since improved. Production rose in 2010-11, resulting in 19.9% revenue growth for the year. Production has continued growing, albeit off a low base. The European economy will continue to be fragile, which will limit export growth. This will be offset by higher demand from the US market and improvement in the domestic market. Consequently, revenue is forecast to grow 6.8% in 2012-13. The recovery was not quite enough to offset the dramatic drop in revenue that occurred in the global downturn. Overall, revenue is estimated to grow at a stagnant 0.6% over the five years through 2012-13 to reach

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