Market Research

Introduction

Alljoinedup has access to a variety of different data sources in terms of both current / historical data and forecasts. This enables us to summarise the existing situation or look at scenario planning for future years.

As members of the SMMT we keep a close eye on the UK and European automotive markets, ensuring we are up to date with any changes in production location or ports of entry. We include both passenger cars and light commercial vehicles in our analysis. Examples of analysis and research that we offer include:

Competitor analysis – by segment, market, brand or model.
Port flows – analysis of port of UK entry and flow from production location.
UK sales by registration postcode location.
Distances from dealer locations and / or registration locations to UK ports.

Why is market research important?

Understanding the market as we move forward will be even more important for automotive brands. Mitsubishi have already made plans to exit the European market and falling sales due to the COVID pandemic will mean increased pressure on smaller brands. Examples of other key challenges that lay ahead are:

Coping with COVID. Buying behaviours will evolve and change with more emphasis on the online offering and less face to face time. Higher levels of unemployment and less travel to work may also impact the market.

Brexit. The UK is due to complete its exit from the European Union at midnight on 31st December 2020. Understanding what tariffs will be applied to which countries is vital and we will have that information. Those manufacturers based in the UK will also be keen to understand any export tariffs, and any import tariffs imposed by other countries on UK goods.

UK / Japan Trade Deal. The two countries have signed a deal in principle with the detail to follow. It is expected to be close to the EU-Japan deal from 2019 which sees 10% tariffs on Japanese vehicles phased out by 2026. Japan have been keen to avoid a scenario where the UK would raise tariffs on their vehicles. Vehicles currently imported from Japan include Toyota (Mirai, Prius, RAV4), Lexus (CT, ES, GS, IS, LC, LS, NX, RC), Honda (CR-V, Jazz, NSX), Fiat (124), Mitsubishi (ASX, Eclipse Cross, Outlander, Shogun), Nissan (370Z, GTR, X-Trail), Mazda (all models), Suzuki, (Ignis, Jimny, Swift) and Subaru (all models). The deal will make these vehicles more competitive than at present, but at lot depends on what happens in other trade deals.

Electric Vehicles. There are now a wide range of different offerings ranging from the PHEV (which has accounted for 3.3% of registrations in the UK between January and August 2020) to HEV (6.3% of registrations), BEV (4.9%) and MHEV (8.5% of registrations split 5.1% petrol / 3.4% diesel). Petrol, diesel and hybrid vehicles will be banned from sale in the UK in 2035 so establishing an electric vehicle offering will be a key battleground in the years ahead.

New entrants. Sometimes proposed new entrants fall by the wayside before they have even started (as was the case with Dyson) but those currently looking to enter the UK market include Ineos, Genesis, Lynk & Co and Rivian. Polestar look set to grow and the expansion of the electric market may also help companies such as Tesla.

New alliances. It’s not just new entrants that will impact the market, it is new alliances forming and possibly existing ones splintering. FCA Group and PSA are currently in the process of merging to form the new group Stellantis. These alliances will impact production locations and UK ports of entry as increased bargaining power will see existing deals renegotiated.

Production location changes. We have completed extensive work tracking the flows of vehicles from production locations in Europe, the US and Asia into the UK. Manufacturers are constantly evaluating where it makes most sense to produce their vehicles, and the shipping route / ports of entry are a key part of this.

Whether you require a quarterly or monthly report analysis UK registrations or a more bespoke piece of analysis please contact Tom Jacobson (tom@alljoinedup.org) or Ian Anderson(ian@alljoinedup.org) for a quote.