Released on = April 16, 2007, 3:49 am

Press Release Author = Bharat Book Bureau

Industry = Marketing

Press Release Summary = Motor Industry Market Review 2006 : The apparent UK market
for motor vehicles and components is estimated to have been worth £59bn in 2005, up
from £57.82bn in 2004. The market has demonstrated year-on-year growth since 2001,
although the annual rate of increase in 2005 was the lowest since 2001.

Press Release Body =
Motor Industry Market Review 2006

Motor Industry Market Review 2006 : The apparent UK market for motor vehicles and
components is estimated to have been worth £59bn in 2005, up from £57.82bn in 2004.
The market has demonstrated year-on-year growth since 2001, although the annual rate
of increase in 2005 was the lowest since 2001.

Four sectors are examined in this Market Review: cars; commercial vehicles;
motorcycles, mopeds and scooters; and motor components. The cars sector is the
largest in terms of both value and volume, but commercial vehicles was the
fastest-growing sector by value and volume between 2001 and 2005.

The performance of the UK motor industry is heavily dependent on the health of the
UK economy. Since 2001, key economic measures such as gross domestic product (GDP),
inflation and employment have all had a positive effect on the market, helping to
boost consumer demand for vehicles and components. Higher interest rates and rising
fuel prices have dampened sales, however, and the increasing volume of EU
regulations affecting the motor industry has added substantially to manufacturers\'
costs.

2005 was a difficult year for the new-car market. The downturn in consumer spending
hit dealerships across the UK and many manufacturers suffered rising costs. Despite
this, demand for diesel-engined cars continued to increase, and these vehicles
accounted for a record share of new car registrations. Demand for commercial
vehicles remained strong in 2005, the number of new registrations being the second
highest on record. However, this market is increasingly being met by imports.

New registrations of motorcycles, mopeds and scooters increased in 2005, helped by
growing sales of motorcycles with engine capacities between 50 cubic centimetres
(cc) and 125cc, and by increasing demand for large-capacity bikes (over 1,000cc),
which are popular among long-distance riders. The motor-components sector continues
to benefit from the presence in the UK of many of the world\'s leading vehicle
manufacturers. Competition remains strong, however, especially from rivals in
low-cost countries.

The apparent UK market for motor vehicles and components is forecast to achieve a
positive but very modest increase in value in 2006, with a weaker car market
limiting the scope for growth. The market is forecast to be a little more buoyant
thereafter, although much will depend on economic conditions and any unforeseen
negative influences that these may have.



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