Key Note Media Centre
Renewed Investment in the Automotive Industry Drives Growth for Autoparts
According to Autoparts, a new Market Report Update from market intelligence provider Key Note, the UK market for autoparts was estimated to have increased in value by 2.4% year on year in 2011.
The majority of demand in the autoparts market is derived from vehicle production activities, with a relatively small market for aftermarket replacement parts and components. In recent years, due to the UK's economic difficulties, vehicle production has significantly reduced, falling by over a third in 2009. Similarly, the number of new vehicle registrations and the used-car market also experienced considerable decline in 2008 and 2009. This ultimately resulted in reduced demand for autoparts, in both the vehicle product and aftermarket sectors.
However, in 2010, vehicle production activities in the UK experienced a strong recovery, mainly due to the impact of the car scrappage scheme, along with strong growth in export markets as a result of rising demand from emerging economies. This trend continued in 2011, with numerous major vehicle manufacturers announcing significant investments in UK vehicle assembly operations and the automotive supply chain.
Due to this investment in the UK automotive industry by the major car manufacturers, as well as increasing funding for environmentally-focused vehicle components, Key Note forecasts that the UK market for autoparts will experience steady growth in 2012, followed by more significant increases up until 2016.