I 245 I
down 6% from 2016. Invested net capital figures stand at £4 billion, declining 20% since 2016. Contrastingly, investment in research and development has grown 35% since 2016 to £3.65 billion in 2017. Likewise, the worth of exported products has grown 5.5% to £44 billion in 2017, accounting for 12.8% of the UK’s total export goods.
Fleet registrations made up 51.9% of total registrations in 2017, followed by private registrations at 44.2% and business registrations at 3.8%. The most popular fleet model was the Volkswagen Golf, and the most popular private model was the Ford Fiesta.
U.S. exporters should explore opportunities for sales of test and inspection equipment for use in garages and service stations that are authorized to undertake stringent annual checks mandated by legislation (the MOT). These include laser and optical alignment systems and diagnostic equipment for engine and fuel emissions, as well as electronic systems for use in specialized service and repair facilities. In addition, OEMs are continually looking for innovative new products, particularly those that focus on providing fuel economy and reduced emissions.
Since 2008, the UK market has seen a shift away from the upper medium segment towards smaller cars in the mini and super-mini segments, as well as the MPV and dual-purpose segments. Changes in buying patterns have been driven by the demand for smaller, more fuel-efficient models, as well as the greater versatility provided by dual purpose and MPV segments. Dual purpose sales overtook upper medium volumes in 2013 to become the third largest segment. The super-mini segment remains the largest by volume, with a market share of roughly 40%.
Aftermarket Summary
The UK automotive aftermarket is strong, ranking fourth in Europe and ninth in the world in terms of size, and turning over an annual £21.1 billion. The market contributes £12.2 billion annually to the economy and is growing, so much so that it is expected to climb to £28 billion in value by 2022. The 2016 count of total service locations (42,446) and total workshop visits (35.1 million) have remained relatively stable between 2015 and 2016. The UK average spend on maintenance per car rose broadly in line with inflation, at a rate of 1-2% in 2016.
Electric Vehicles Market
Demand for hybrid and plug-in cars in the UK continues to grow, specifically surging 88.7% between 2017 and 2018. The UK’s growing range of hybrid, plug-in hybrid and pure electric cars continues to attract buyers, with a record one in 12 people choosing one.
Opportunities: Heavy Duty Products Summary
The number of enterprises in the broad UK construction sector totaled 508,226 in 2017, which is a 10.7% increase between 2010 and 2017. This growth is explained by the 32.1% increase in the architectural and engineering sub-sector. Sector production has increased 20% between 2010 and 2017. The UK continues to be a strong performing construction equipment market, with earth-moving equipment retail sales growing by 3.8% from 2017 to 2018.
Opportunities: Specialty Equipment Market Summary
Cars can be modified to improve performance or style in the UK. Popular modifications to cars include in-car entertainment systems, lights or reflectors, wheels and tires, suspension, brakes, license (number) plates, and exhaust systems. However, laws do govern and limit these modifications, in some cases significantly. For exhaust systems, all mufflers must be maintained in a good and efficient working order, and it is against the law to remove a muffler or make any modification that would make the vehicle emit a noise louder than the original exhaust before it was modified.
Opportunities: Used and Remanufactured Market Summary
There are no restrictions placed on the importation of used motor vehicle parts into the UK. There are no quotas or limitations, special treatment or conditions applicable to the importation of used motor vehicle parts.
The remanufacturing industry is well developed within the UK. Overall, the market for replacement parts, whether remanufactured or rebuilt, is relatively static, as original parts continue to last longer. Best prospects for U.S. suppliers are for rotating electric motors (starters and alternators) and for friction products such as brakes and clutches, though the brake market largely concentrates on commercial vehicles. There are no restrictions on the importation of remanufactured or rebuilt motor vehicle parts of any kind, and there are no quotas or limitations, special treatment or conditions applicable to the importation of remanufactured or rebuilt motor vehicle parts. Remanufactured/ rebuilt parts are considered by H.M. Customs and Excise to be new parts and rates of duty are determined as such.
Best Prospects for U.S. Exports
best prospects