Key Issues in the UK Automotive Industry

Report

Table of Contents
INTRODUCTION...........................................................................................................................3
Key issues....................................................................................................................................3
Categorizing the issue with the help of PESTLE analysis...........................................................4
Impact on the businesses..............................................................................................................5
Reflection.....................................................................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................7

INTRODUCTION
Automotive sector is consisted of the different types of organizations and companies that
are involved in producing, designing, manufacturing and selling motor vehicles. It is considered
as one of the largest economic sectors in terms of revenue (Bailey and De Propris, 2017).
The Report will outline key issues that are affecting the auto-mobile industry in UK. It
will further categorize the key issues with the help of PESTLE framework, impact of key issues
on the business and reflection etc.
MAIN BODY
Key issues.
There are various types of issues or challenges that are faced by auto mobile industry of
UK. These are described below.
Increase in demand :
One of the major issue is increase in the demand for the auto mobiles. The industry is one
of the biggest exporter of cars across the world. United Kingdom has special relationship with
auto mobile industry. The brands of auto mobiles that are originated in UK hold standing around
the world. Although, the industry of auto-mobile has been affected by economic recession the
automotive industry of UK has made a strong recovery (Mazur, C., and et.al, 2015). In year
2017, the industry has contributed 20.2 billion pounds to the overall economy of the country. It is
approximately double of the turnover in year 2010. Further, as per the provisional results the
industry of motor vehicle had generated nearly 70 billion euros in overall sales in year 2017. For
example - The demand of auto-mobiles has increased due to which brands such as Jaguar Land
Rover, Nissan both has manufactured approximately 1.52 passenger cars in year 2018. The fact
is that the growth in electric vehicles is more as compared with the growth in demand of sports
utility vehicles. In Europe, the sales of sports utility vehicles is approximately 34%. The reason
of increase in demand lies in status that is advertisement such as muscular dynamism rather than
due to specific capabilities or price which sports utility vehicle can offer. From past two years
there is a sharp increase in the demand of SUV's (The UK Automotive Industry, 2019).
Unemployment :
The condition of unemployment happens when the individual is actively finding the job
is unable to find work. The basic measure of unemployment is the rate of unemployment. There
are various factors due to which the level of employment in automotive industry is declining in