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Automobile Industry In Uk Essay

1134 words - 5 pages

Automobile Industry in UK
- An Internal and External environmental study
The automobile sector in United Kingdom (UK) is very vibrant and innovative with Seven commercial vehicle manufacturers, nine bus and coach manufacturers, eight major premium and sports car producers, seven mainstream cars manufacturers; eight formula one teams; thirteen R&D centers; and over 100 specialist brands and niche manufacturers. Some of the best premium and sports cars manufactured in UK are Aston Martin, Bentley, Daimler, Jaguar, Lagonda, LandRover, Lotus, McLaren, MG, Mini, Morgan  and Rolls-Royce. UK automotive industry is ...view middle of the document...

VALUE of UK Automotive Industry –

Figure 1
Source: figures from
PESTEL analysis of the automobile sector in UK:

Automobile Industry in UK




Figure 2
Source: Made by student

Political Factors:
* There are industry associations and trade bodies like The Retail Motor Industry Federation (RMI), The Society of Motor Manufacturers and Traders (SMMT) which support and promote the interest of UK automotive industry both at home and abroad.
* The SMMT is a distinguished forum formed to bring together the leading automobile manufacturers, SMMT and the Government, the main aim being improvement of performance and competitiveness of UK’s automotive supply chain.
* The automotive council was established in 2009 to facilitate a productive channel of communication between the industry and the government.
* The automotive council mainly works through three channels – the Supply Chain group, the Technology group, the Business Environment and Skills group. With tremendous political support UK’s dynamic, innovative and cutting edge automotive sector is flourishing.

Economical Factors:
* With a turnover of about £60bn; Automobile Industry is one of the key sectors in the manufacturing segment accounting for about two third of total production and turnover from the entire sector in UK.
* Automobile sector also contributes in the net value addition to the economy by around £12bn each year.
* Automobile industry in UK exports almost 70% of its production hence contributing for more than 10% of total exports by UK. With increased sale of premium products to markets such as China and the US helped in lifting the overall sectors performance. About 50 % of its total export is to European Union and remaining in about 100 different countries of the world.
* The industry in UK is also focusing on shifting the sourcing of components to local sources and reducing the dependency on imports, especially in the high technical and electric vehicle areas.
* The automotive Industry in UK has been able to attract foreign direct investments because of its quality and focused management. The industry holds a significant share of global automotive market in this fiercely competitive market.
Social Factors -
* The industry is a hub for employment creation as it presently employs over 700000 employs in UK in various segments from manufacturing, designing, marketing, branding and after sale service.
* There are about 2350 companies in UK which qualify to be called as ‘automotive’ suppliers, employing around 82,000 people.
* About 4500 companies in UK are engaged in Motorsports employing more than 38500 people.
* The UK has also...

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