Market reports, business information and market research from Midnight Croquet. Key Note Autoparts Report.

About market research company Midnight Croquet and our market report services

Read about how Key Note create their market reports

KN34002

KEY NOTE AUTOPARTS : November 2002

Our price

CLICK

TO BUY

This report covers: autoparts, parts,tyres,batteries,exhausts,motor parts

Companies covered include: GKN, Lucas Industries, Tomkins, UGC,TI Group, Britax International, The Mayflower Corporation, BTR/Siebe, Valeo, Laird, Finelist, BBA, Britax, GKN, TI Group, Tomkins, UGC,

EXECUTIVE SUMMARY

Vehicle manufacturers are putting their UK-based autoparts suppliers under intense pressure to reduce their prices regularly, and at the same time are preparing to enter into new contracts with alternative suppliers of cheaper parts, mainly from other European countries. This change in the operational environment is linked both to the recent downturn in domestic car and commercial vehicle production in the UK and to the considerable excess in motor vehicle capacity that exists in Europe — an excess that has resulted in the imminent closure of the car assembly plants at Dagenham (Ford) and Luton (Vauxhall).

Between 1996 and 2000, UK manufacturers' sales of autoparts are estimated to have increased by 8.1 percent, but UK demand for parts increased by an estimated 41.4 percent because of a growth in imports and a decline in exports. The volume of car and commercial vehicle production in the UK increased annually between 1996 and 1998, but the small fall in production in 1999 was followed by a larger downturn in 2000, and this has continued into 2001. The disputed change in the ownership of the Rover Group, the leading buyer of UK-manufactured autoparts, and its low level of vehicle production, has compounded the problems of the industry. Intense price pressures on suppliers and the expectation of falling demand for original equipment (OE) made in the UK have caused several important autopart manufacturers to withdraw from this market.

The replacement market has increased in importance because of the problems experienced in the OE market. However, while this sector has the potential to generate higher profit margins, OE manufacturers have to compete with independent UK companies, which are skilled at duplicating the more frequently changed parts, as well as with foreign manufacturers. Price competition in this sector is also very intense, and as the original parts improve in quality, the replacement cycle becomes longer.

Car and commercial-vehicle production in the UK is expected to continue at around its current level if the new MG Rover Group can achieve its planned volume targets and if the new models made by other manufacturers prove to be popular with customers in the UK and overseas. According to trade estimates, around £2bn will be invested by car and commercial vehicle manufacturers in the UK over the next 3 to 5 years, despite their existing problems. However, unless the values of sterling and the euro are brought into closer alignment, the expansion in production will not significantly increase demand for UK-based autopart manufacturers.

Key Note forecasts that the value of the apparent UK market for autoparts will grow by 12.1 percent between 2001 and 2005, but that UK manufacturers' sales will decline by 9.2 percent over the same period. Imports are expected to grow by 18.2 percent as new contracts now being negotiated with suppliers outside the UK begin to take effect. These forecasts assume that there will be some movement in the political/economic discussions about entry to the `eurozone', and possibly a realignment of the currencies, but that no effective decisions will be made in the period up to 2005.

TABLE OF CONTENTS

Executive Summary	1
1. Market Definition	2
REPORT COVERAGE	2
MARKET SECTORS	2
Original Equipment	2
The Aftermarket (Repairs
and Maintenance)	3
MARKET TRENDS	3
Age of Cars in Use	3
Table 1: Breakdown of Cars in Use in Great
Britain by Age of Car
( percent), 1996-1998	4
Cars and Commercial
Vehicles in Use	4
Table 2: Number of Cars and Commercial
Vehicles in Use in
the UK, 1996-1999	5
New Registrations of Cars and Commercial Vehicles	5
Table 3: Number of New Registrations of Cars
and Commercial Vehicles in the UK (000),
1996-2000	6
Production of Cars
and Commercial Vehicles	6
Table 4: Number
of Cars and Commercial Vehicles Produced in
the UK, 1996-2000	7
MARKET POSITION	7
The UK	7
Overseas	8
TRADE ASSOCIATIONS	9
Automobile Association	9
Automotive Aftermarket Association	9
British Rubber
Manufacturers
Association	9
Direct Line Rescue
(formerly Green Flag National Breakdown)	9
Institute of Vehicle
Engineers	9
National Tyre Distributors Association	9
RAC Ltd	10
Retail Motor Industry Federation	10
Society of Motor Manufacturers
and Traders	10
2. Market Size	11
THE TOTAL MARKET	11
Table 5: The Apparent
UK Market for Motor Vehicle Parts and Accessories by Value
(£m), 1996-2000	12
OVERSEAS TRADE	12
Imports	12
Table 6: UK Imports of Motor Vehicle Parts
and Accessories by
Source by Value
(£m and percent), 1999	13
Exports	13
Table 7: UK Exports of Motor Vehicle Parts
and Accessories by Destination by Value
(£m and percent), 1999	14
3. Industry Background	15
RECENT HISTORY	15
NUMBER OF COMPANIES	15
By Turnover	15
Table 8: Number of
VAT-Based Enterprises Involved in the Repair
and Maintenance
of Motor Vehicles and Motorcycles and in the Sale of Motor Vehicle
Parts and Accessories
by Turnover (£000),
2000	16
Table 9: Number of
VAT-Based Enterprises Involved in the Manufacture of Parts
and Accessories for
Motor Vehicles and their Engines by Turnover (£000), 2000	17
By Number
of Employees	17
Table 10: Number
of VAT-Based Local
Units Involved in the Manufacture of Parts
and Accessories for
Motor Vehicles and
their Engines by
Number of
Employees, 2000	18
EMPLOYMENT	18
REGIONAL VARIATIONS
IN THE MARKETPLACE	18
DISTRIBUTION	19
HOW ROBUST
IS THE MARKET?	20
LEGISLATION	21
4. Competitor Analysis	22
THE MARKETPLACE	22
Table 11: Selected
Leading UK Suppliers
of Motor Vehicle Parts
and Accessories by
Turnover (£m), 1998/1999/2000	22
MARKET LEADERS	26
GKN PLC	26
Lucas Industries PLC	27
Tomkins PLC	27
UGC Ltd	28
TI Group PLC	29
Britax International PLC	29
The Mayflower
Corporation PLC	30
OUTSIDE SUPPLIERS	31
Steel and Aluminium	31
Plastic	31
Copper Wire, Aluminium
and Non-Ferrous Alloys	31
Rubber	31
Glass	32
Chemical Products	32
Indirect Suppliers	32
ADVERTISING AND PROMOTION	32
Main Media Advertising Expenditure	32
Motor Components
and Accessories	32
Table 12: Main Media Advertising Expenditure on Motor Components
and Accessories (£000),
Year to March 2001	33
Tyres	33
Table 13: Main Media Advertising Expenditure on Tyres† (£000),
Year to March 2001	34
Tyre and Exhaust
Centres	34
Table 14: Main Media Advertising Expenditure
by Tyre and Exhaust Centres (£000),
Year to March 2001	35
Exhibitions
and Trade Shows	35
5. Strengths, Weaknesses, Opportunities
and Threats	36
STRENGTHS	36
WEAKNESSES	36
OPPORTUNITIES	37
THREATS	37
6. Buying Behaviour	38
DEMAND FOR
MOTOR VEHICLES	38
Cars	38
Commercial Vehicles	38
Buses and Coaches	39
PURCHASERS
OF AUTOPARTS	40
Tyres	40
Table 15: Purchasers
of Tyres by Social Grade and Heaviness of Use
( percent of adults), 2000	40
Car Batteries	41
Table 16: Purchasers
of Car Batteries by
Social Grade and
Heaviness of Use
( percent of adults), 2000	41
Spark Plugs	41
Table 17: Purchasers of Spark Plugs by Social Grade and Heaviness
of Use ( percent of adults),
2000	42
7. Current Issues	43
THE ROLE
OF THE INTERNET	43
THE IMPACT
OF THE EURO	43
THE POLITICAL SCENE	44
PRODUCT
DEVELOPMENT	44
CONSUMER DEMAND	45
PLANT OPENINGS
AND CLOSURES	45
CORPORATE ACTIVITY	46
BTR/Siebe PLC	46
Valeo Ltd	46
Laird PLC	46
Finelist PLC	46
BBA PLC	46
THE ENVIRONMENT	47
8. The Global Market	48
THE TOTAL MARKET	48
The Vehicle Population	48
Table 18: Number
of Cars and Commercial Vehicles in Selected Countries and Regions
of the World (000
and persons per car),
1999	49
Exports of Vehicles	50
Table 19: The World’s Leading Exporters of
Cars and Commercial Vehicles (number of
vehicles), 1999	51
REGIONAL MARKETS	51
The US and Canada	51
Western Europe	52
Germany	52
France	52
The UK	52
Italy	53
Japan	53
MAJOR TRENDS	54
CONSUMER
BEHAVIOUR	54
Table 20: The
Commercial Vehicle
Fleet and Total Vehicle Numbers in Selected Countries of the World (000 and percent), 1999	55
THE FUTURE	56
9. Forecasts	57
THE ECONOMY	57
FORECASTS
2001 TO 2005	57
Table 21: The Forecast Apparent UK Market
for Motor Vehicle Parts and Accessories by
Value (£m),
2001-2005	58
FUTURE TRENDS	59
10. Company Profiles	60
BRITAX
INTERNATIONAL PLC	61
GKN PLC	63
THE MAYFLOWER CORPORATION PLC	65
TI GROUP PLC	67
TOMKINS PLC	69
UGC LTD	71
11. Further Sources	73
Associations	73
Periodicals	75
Directories	76
General Sources	77
Bonnier
Information Sources	77
Government
Publications	78
Other Sources	79
Understanding TGI Data	81
Number, Profile,
Penetration	81
Social Grade	82
Standard Region	82
Key Note Research	83
The Key Note Range
of Reports	84

Can't find what you need?
Try our "Research on Request" market report service and define your own report research!
Fixed prices - £150, £450 and £1,250 - and fixed delivery of 4, 5 and 14 days

Click here for full details

Ariadne - working together with our customers to enhance productivity and increase knowledge
© 2004 www.the-list.co.uk Ariadne
Last updated by Amanda Porteous February 2004