The UK’s car industry is worth PS78.9 billion, which is equivalent to more than PS15 billion a year and contributes more than 15% to the UK economy. By 2030, the global automotive industry is expected to be worth $9 trillion. The car industry has changed as a result of changing consumer needs and wants. It is now more fashionable than ever to buy a car based on a trend. Upstream activities within the auto industry will be worth $60 billion in value by 2035.
Automotive aftermarket worth $273.4 billion in 2017
The automotive aftermarket is a growing industry, estimated to be worth $273.4 billion in 2017. This represents a 35 percent increase from four years ago, according to the Automotive Aftermarket Suppliers Association. While the industry is a complex one, it is important to keep in mind that most consumers consider the environment when shopping for a new vehicle. The following are some of the main factors that make up the automotive aftermarket industry.
Profit pools will generate 40% of car industry profits by 2035
By 2035, more than half of all profits will be made by emerging profit pools, such as battery-powered electric vehicles (BEVs), data and connectivity services, on-demand mobility offerings, and autonomous vehicle components. The decline in new car sales is likely to accelerate the shift to these emerging profit pools, which are expected to generate nearly half of industry profits by that date. The car industry is likely to experience a long, slow decline in profits from traditional profit pools – especially as the growth of new cars slows.
Exports from the United States were worth $60 billion in 2017
The United States exported 1.8 million light vehicles and 131,200 medium and heavy trucks in 2017. In 2017, the country’s automotive exports totaled $60 billion. The country’s competitive advantages include an attractive investment climate, a large and discerning consumer market, available infrastructure, and government incentives. Here are a few examples of industries that are flourishing in the United States:
Upstream activities in the auto industry
Upstream activities in the automotive industry are critical to the production process of cars and other automobile products. These activities include raw material procurement from suppliers and distribution to manufacturing units. The design and manufacture portion of the value chain involves the operations of turning raw materials into finished products. Some automotive producers have manufacturing units and operations around the world. This type of supply chain has many benefits for the companies involved. It also helps to save costs. These activities are vital to the growth of a company.
Future of the auto industry
The automotive industry has faced several challenges and obstacles in recent years. The International Energy Agency reported that car sales will fall from 92 million in 2018 to 88 million in 2019 and 73 million in 2020. This decrease is primarily due to a decline in consumer spending on car parts. However, consumer spending on automotive parts is expected to bounce back to recent levels. Consumer spending in automotive parts retail stores will return to pre-COVID-19 levels by the end of the decade.