Current Trends In The UK Market Flashcards
In 2021 how much was the UK automotive turnover ?
In 2021 the UK automotive industry had a turnover of £67bn, directly employed 182 000 people and 780 000 across the wider industry.
In 2021 how much did the UK car industry account for the total UK exports?
It accounted for 10% of total UK exports to over 150 countries.
Trend
A tendency to move in a general direction.
What is a price?
the amount charged by a business in order to make revenue from its operations.
What happened to price of used cars?
Prices of used cars saw a significant increase due to a shortage of new vehicles during the global lockdown. This was due to a shortage of semiconductors, the chips that are used to run systems such as digital displays, in new cars.
How did COViD - 19 affect the demand for new cars?
- the shortage of semiconductors was caused as factories that supplied them shut down during the Covid-19 pandemic. The backlog in orders meant that there was a limited supply of new cars to the market, therefore increasing demand for used cars.
-In the second half of 2022, as global markets opened up again, these problems have gradually been solved. This has led to a fall in the price of used cars.
What is expected to happen to new car prices between 2021 and 2022?
It is expected that new car prices will continue to increase year on year, having risen 3.3% between 2021 and 2022. Inflationary pressure is likely to impact on costs in 2022-23, pushing prices up by 3.3%.
Consumer tastes
the range of preferences that an individual has.
Consumer preferences
the order that an individual gives to alternative goods and services based on the satisfaction that they provide. There is an opportunity cost and trade-offs.
What is opportunity cost ?
Opportunity cost is the cost of missing out on the next best alternative. In other words, opportunity cost represents the benefits that could have been gained by taking a different decision
What is a trade off?
A trade-off arises where having more of one thing potentially results in having less of another. The table below lists some examples of how trade-offs often arise in business - as a result of resource scarcity.
What factors have impacted on consumer tastes and preferences in the UK car market ?
• A move towards electric vehicles
• A preference for hatchbacks and then SUVs
• A preference for grey cars, followed by black
• Increased online sales
• Reduced ownership, increased leasing
What are the types of electric vehicles (EV)?
- Battery Electric Vehicle (BEV) - Powered purely by electric with a typical range of 100 – 300 miles.
- Plug-in hybrid electric vehicle- Part electric e.g., first 50 miles, part petrol.
- Extended range electric vehicle- Electricity only but has a regenerating battery so suitable for longer journeys.
Range anxiety
the fear of running out of charge in your electric vehicle.
