Automotive Manufacturing in the UK
Content
INDUSTRY PROFILE
Automotive Manufacturing in the United Kingdom
Reference Code: 0183-2606 Publication Date: May 2011
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EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Market value
The United Kingdom automotive manufacturing industry grew by 27.8% in 2010 to reach a value of $16.7 billion.
Market value forecast
In 2015, the United Kingdom automotive manufacturing industry is forecast to have a value of $25.5 billion, an increase of 52.7% since 2010.
Market volume
The United Kingdom automotive manufacturing industry grew by 26.4% in 2010 to reach a volume of 1.4 million units.
Market volume forecast
In 2015, the United Kingdom automotive manufacturing industry is forecast to have a volume of 1.9 million units, an increase of 36.4% since 2010.
Market segmentation I
Cars is the largest segment of the automotive manufacturing industry in the United Kingdom, accounting for 82.8% of the industry's total value.
Market segmentation II
The United Kingdom accounts for 5.6% of the European automotive manufacturing industry value.
Market rivalry
The UK automotive industry was severely affected by the economic downturn, with a decline in revenues being recorded in 2008 and 2009. However, 2010 saw a strong rebound with revenues growing for the first time since 2007.
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CONTENTS
TABLE OF CONTENTS
EXECUTIVE SUMMARY MARKET OVERVIEW Market definition Research highlights Market analysis MARKET VALUE MARKET VOLUME MARKET SEGMENTATION I MARKET SEGMENTATION II FIVE FORCES ANALYSIS Summary Buyer power Supplier power New entrants Substitutes Rivalry LEADING COMPANIES Ford Motor Company Honda Motor Co., Ltd. Toyota Motor Corporation MARKET FORECASTS Market value forecast Market volume forecast MACROECONOMIC INDICATORS APPENDIX Methodology Industry associations Related Datamonitor research
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CONTENTS
Disclaimer ABOUT DATAMONITOR Premium Reports Summary Reports Datamonitor consulting
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CONTENTS
LIST OF TABLES
Table 1: Table 2: Table 3: United Kingdom automotive manufacturing industry value: $ billion, 2006–10 United Kingdom automotive manufacturing industry volume: million units, 2006–10 United Kingdom automotive manufacturing industry segmentation I:% share, by value, 2010 United Kingdom automotive manufacturing industry segmentation II: % share, by value, 2010 Ford Motor Company: key facts Ford Motor Company: key financials ($) Ford Motor Company: key financial ratios Honda Motor Co., Ltd.: key facts Honda Motor Co., Ltd.: key financials ($) Honda Motor Co., Ltd.: key financials (¥) Honda Motor Co., Ltd.: key financial ratios Toyota Motor Corporation: key facts Toyota Motor Corporation: key financials ($) Toyota Motor Corporation: key financials (¥) Toyota Motor Corporation: key financial ratios United Kingdom automotive manufacturing industry value forecast: $ billion, 2010–15 United Kingdom automotive manufacturing industry volume forecast: million units, 2010–15 United Kingdom size of population (million), 2006–10 United Kingdom gdp (constant 2000 prices, $ billion), 2006–10 United Kingdom gdp (current prices, $ billion), 2006–10 United Kingdom inflation, 2006–10 United Kingdom consumer price index (absolute), 2006–10 United Kingdom exchange rate, 2006–10 10 11
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CONTENTS
LIST OF FIGURES
Figure 1: Figure 2: Figure 3: United Kingdom automotive manufacturing industry value: $ billion, 2006–10 United Kingdom automotive manufacturing industry volume: million units, 2006–10 United Kingdom automotive manufacturing industry segmentation I:% share, by value, 2010 United Kingdom automotive manufacturing industry segmentation II: % share, by value, 2010 Forces driving competition in the automotive manufacturing industry in the United Kingdom, 2010 Drivers of buyer power in the automotive manufacturing industry in the United Kingdom, 2010 Drivers of supplier power in the automotive manufacturing industry in the United Kingdom, 2010 Factors influencing the likelihood of new entrants in the automotive manufacturing industry in the United Kingdom, 2010 Factors influencing the threat of substitutes in the automotive manufacturing industry in the United Kingdom, 2010 Drivers of degree of rivalry in the automotive manufacturing industry in the United Kingdom, 2010 Ford Motor Company: revenues & profitability Ford Motor Company: assets & liabilities Honda Motor Co., Ltd.: revenues & profitability Honda Motor Co., Ltd.: assets & liabilities Toyota Motor Corporation: revenues & profitability Toyota Motor Corporation: assets & liabilities United Kingdom automotive manufacturing industry value forecast: $ billion, 2010–15 United Kingdom automotive manufacturing industry volume forecast: million units, 2010–15 10 11
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MARKET OVERVIEW
MARKET OVERVIEW
Market definition
The automotive manufacturing industry comprises of the production of trucks, passengers cars and motorcycles. The truck manufacturers market comprises of the production of light commercial vehicles (LCVs), heavy trucks, and buses & coaches. LCVs weigh up to 7 tons, heavy trucks weigh greater than 7 tons, and buses & coaches weigh greater than 7 tons. Sports utility vehicles and similar vehicles are not included. T Passenger cars are defined as motor vehicles with at least four wheels, used for the transport of passengers, and comprising no more than eight seats in addition to the driver's seat. Motorcycle manufacturers are producers of powered two-wheelers (PTWs) that are available to the public. All designs and engine capacities, including low-powered bikes referred to as mopeds, are included as well as on-road (street legal), racetrack only and off-road motorcycles. The automotive manufacturing industry value is calculated in terms of manufacturer selling price (MSP), and excludes all taxes and levies. All currency conversions are at constant average annual 2010 exchange rates. For the purposes of this report, Europe consists of Western Europe and Eastern Europe. Western Europe comprises Belgium, Denmark, France, Germany, Greece, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland, Turkey, and the United Kingdom. Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine.
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MARKET OVERVIEW
Research highlights
The UK automotive manufacturing industry generated total revenue of $16.7 billion in 2010, representing a compound annual rate of change (CARC) of -3.3% between 2006 and 2010. Industry production volumes decreased with a CARC of -4.5% between 2006 and 2010, to reach a total of 1,406.4 thousand units in 2010. The performance of the industry is forecast to accelerate, with an anticipated CAGR of 8.9% for the fiveyear period 2010 - 2015, which is expected to drive the industry to a value of $25.5 billion by the end of 2015.
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MARKET OVERVIEW
Market analysis
The UK automotive manufacturing industry suffered market declines in 2008 and 2009, as the effects of the recession were felt. The market gained momentum in 2010 and is expected to sustain this recovery over the course of the forecast period, posting strong growth up to and including 2015 The UK automotive manufacturing industry generated total revenue of $16.7 billion in 2010, representing a compound annual rate of change (CARC) of -3.3% between 2006 and 2010. In comparison, the French industry declined with a CARC of -7.3%, while the German industry grew with a CAGR of 2.3%, over the same period, to reach respective values of $32 billion and $112.6 billion in 2010. Industry production volumes are forecast to decrease with a CARC of -4.5% between 2006 and 2010, to reach a total of 1,406.4 thousand units in 2010. The industry's volume is expected to rise to 1,917.8 thousand units by the end of 2015, representing a CAGR of 6.4% for the 2010-2015 period. The Cars segment was the industry's most lucrative in 2010, with total revenue of $13.8 billion, equivalent to 82.8% of the industry's overall value. The Trucks segment contributed revenue of $2.6 billion in 2010, equating to 15.9% of the industry's aggregate value. The performance of the industry is forecast to accelerate, with an anticipated CAGR of 8.9% for the fiveyear period 2010 - 2015, which is expected to drive the industry to a value of $25.5 billion by the end of 2015. Comparatively, the French and German industries will grow with CAGRs of 5.8% and 2.8% respectively, over the same period, to reach respective values of $42.4 billion and $129.6 billion in 2015.
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MARKET VALUE
MARKET VALUE
The United Kingdom automotive manufacturing industry grew by 27.8% in 2010 to reach a value of $16.7 billion. The compound annual rate of change of the industry in the period 2006–10 was -3.3%. Table 1: Year 2006 2007 2008 2009 2010 CAGR: 2006–10 Source: Datamonitor United Kingdom automotive manufacturing industry value: $ billion, 2006–10 $ billion 19.1 21.0 20.3 13.0 16.7 £ billion 12.4 13.6 13.1 8.4 10.8 € billion 14.4 15.8 15.3 9.8 12.6 % Growth 10.0% (3.4%) (35.7%) 27.8% (3.3%) DATAMONITOR
Figure 1:
United Kingdom automotive manufacturing industry value: $ billion, 2006–10
Source: Datamonitor
DATAMONITOR
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MARKET VOLUME
MARKET VOLUME
The United Kingdom automotive manufacturing industry grew by 26.4% in 2010 to reach a volume of 1.4 million units. The compound annual rate of change of the industry in the period 2006–10 was -4.5%. Table 2: Year 2006 2007 2008 2009 2010 CAGR: 2006–10 Source: Datamonitor United Kingdom automotive manufacturing industry volume: million units, 2006–10 million units 1.7 1.8 1.7 1.1 1.4 % Growth 5.6% (5.5%) (33.9%) 26.4% (4.5%) DATAMONITOR
Figure 2:
United Kingdom automotive manufacturing industry volume: million units, 2006–10
Source: Datamonitor
DATAMONITOR
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MARKET SEGMENTATION I
MARKET SEGMENTATION I
Cars is the largest segment of the automotive manufacturing industry in the United Kingdom, accounting for 82.8% of the industry's total value. The trucks segment accounts for a further 15.9% of the industry. Table 3: United Kingdom automotive manufacturing industry segmentation I:% share, by value, 2010 Category Cars Trucks Motorcycles Total Source: Datamonitor % Share 82.8% 15.9% 1.3% 100% DATAMONITOR
Figure 3:
United Kingdom automotive manufacturing industry segmentation I:% share, by value, 2010
Source: Datamonitor
DATAMONITOR
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MARKET SEGMENTATION II
MARKET SEGMENTATION II
The United Kingdom accounts for 5.6% of the European automotive manufacturing industry value. Germany accounts for a further 37.9% of the European industry. Table 4: United Kingdom automotive manufacturing industry segmentation II: % share, by value, 2010 Category Germany Spain France Italy United Kingdom Rest of Europe Total Source: Datamonitor % Share 37.9% 12.7% 10.8% 5.9% 5.6% 27.0% 100% DATAMONITOR
Figure 4:
United Kingdom automotive manufacturing industry segmentation II: % share, by value, 2010
Source: Datamonitor
DATAMONITOR
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FIVE FORCES ANALYSIS
FIVE FORCES ANALYSIS
The automotive manufacturing market will be analyzed taking manufacturers of cars, trucks and motorcycles as players. The key buyers will be taken as car, truck and motorcycle dealerships, and manufacturers of raw materials and ready made components as the key suppliers.
Summary
Figure 5: Forces driving competition in the automotive manufacturing industry in the United Kingdom, 2010
Source: Datamonitor
DATAMONITOR
The UK automotive industry was severely affected by the economic downturn, with a decline in revenues being recorded in 2008 and 2009. However, 2010 saw a strong rebound with revenues growing for the first time since 2007. Buyer power in this industry is weakened by the high switching costs faced by dealerships and customer loyalty with respect to dominating brands. Amongst the suppliers there are providers of commodity items such as metals, and their power is boosted due to their large size, consolidation of the industry and the fact that automotive manufacturers account for only a small proportion of their revenues. For new entrants to the industry, setting up a production facility involves large capital outlay thus constituting a significant entry barrier and high fixed cost. Furthermore the global tightening of emission standards is ramping up costs further. Substitutes present a moderate threat in the form of used vehicles and other modes of transport. Rivalry is boosted by the presence of large, international incumbents.
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FIVE FORCES ANALYSIS
Buyer power
Figure 6: Drivers of buyer power in the automotive manufacturing industry in the United Kingdom, 2010
Source: Datamonitor
DATAMONITOR
Main buyers within this industry as a whole are dealerships. However, end-user pull-through is important. Dealerships tend to have exclusive contractual agreements with manufacturers and as such switching costs are very high. Manufacturers rarely sell end to end consumers and tend to use a dealership to reach the end market. This strengthens buyer power to an extent as manufacturers are reliant on dealerships. However, similarly dealerships are also highly dependent on manufacturers – the product is almost completely indispensible to them, which further undermines buyer power. This industry is dominated by large international players such as Hyundai and Suzuki. This means that buyers within the industry face a relatively low concentration of players, indicating a lower level of choice. However, the concentration of the automotive industry varies significantly between countries and regions. There is a relatively large number of buyers within the industry, which coupled with a high level of product differentiation weakens buyer power further. Dealers are forced to sell brands and models preferred by consumers, which tends to reduce the power even more. It is also unlikely for dealers to integrate backwards into the manufacturers' operating area due to the different nature of the business, although it should be noted that many of the dealerships are examples of the manufacturer forward integrating. Overall, buyer power is assessed as relatively weak in this industry.
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FIVE FORCES ANALYSIS
Supplier power
Figure 7: Drivers of supplier power in the automotive manufacturing industry in the United Kingdom, 2010
Source: Datamonitor
DATAMONITOR
Key inputs required by automotive manufacturers are typically commodity items, such as metals and more differentiated inputs like fabricated components. These items tend to be produced by other companies rather than being manufactured in-house. Amongst the providers, there are large, multinationals with a strong presence within global markets which boosts their power. To ensure timely delivery of such materials, market players often sign contracts with their providers, thus strengthening their power. With fairly low differentiation of raw materials, there is often little to distinguish between some suppliers, which reduces supplier power. However, the importance of high quality raw materials and components to manufacturers (particularly in relation to safety concerns) can increase supplier power. Typical suppliers are likely to sell to a wide variety of manufacturing companies, with the automotive market likely to be contributing only a small share of total supplier revenues. This further strengthens the position of suppliers. Overall, supplier power is moderate.
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FIVE FORCES ANALYSIS
New entrants
Figure 8: Factors influencing the likelihood of new entrants in the automotive manufacturing industry in the United Kingdom, 2010
Source: Datamonitor
DATAMONITOR
Brand strength and reputation are highly important in the automotive manufacture industry, and it is therefore quite difficult for new players to directly enter a particular country's market. Those that succeed often do so through the introduction of successful foreign brands. Setting up a production facility involves large capital outlay thus constituting a significant entry barrier and resulting in high fixed costs. Additionally, leading automotive brands such as Ford and Volkswagen enjoy an exceptionally high level of brand recognition, which is reflected in their high sales volumes and market dominance. Due to the existing strength of such brands it is difficult for new entrants to introduce their products into the market. However, sales are sometimes sensitive to price and it may be possible for manufacturers to enter markets through the sale of budget vehicles. For example, the Chinese Qianjiang group has had a high degree of success entering European markets with the sale of its Keeway brand of budget motorcycles. Furthermore, the global tightening of emission standards is ramping up costs further as automotive redesigns are required to conform to new emissions laws. Such a trend can trigger the demand for newer, more economical engines, involving higher costs of R&D spending. The EU has some of the strongest emissions guidelines having adopted Euro V in 2010. Currently member states are not allowed to sell vehicles that do not meet the standards. The global economic downturn impacted this industry heavily in 2008 and 2009 with a sharp fall in revenues recorded. However, the industry appears to be recovering well. Overall, the likelihood of new entrants to this industry is assessed as weak.
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FIVE FORCES ANALYSIS
Substitutes
Figure 9: Factors influencing the threat of substitutes in the automotive manufacturing industry in the United Kingdom, 2010
Source: Datamonitor
DATAMONITOR
The main substitute threatening players in this industry is used vehicles. Dealerships which sell both new and used vehicles are likely to have sold more of the latter during the global economic downturn as consumers avoid making big purchases, e.g. new cars. On the other hand, new emission standards, together with technological solutions, may lead to a situation where it may be more economical in the long run (e.g. in terms of tax, fuel costs etc.) to purchase a new vehicle. A further substitute is alternative modes of transport. For example, consumers may use public transport as opposed to having a personal vehicle, or businesses may choose road or rail transport for goods as opposed to owning a truck. Overall, the threat of substitutes is moderate.
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FIVE FORCES ANALYSIS
Rivalry
Figure 10: Drivers of degree of rivalry in the automotive manufacturing industry in the United Kingdom, 2010
Source: Datamonitor
DATAMONITOR
The automotive manufacturing market consists of a relatively small number of large-scale companies. The market is fairly consolidated, as companies have looked to increase their market share in the face of limited growth in large but mature markets, e.g. Western Europe. Rivalry is slightly reduced due to a degree of differentiation, with several different segments within the industry, for example ‘luxury’ vehicles and ‘budget’ vehicles. Fixed costs and exit barriers are of significant meaning within this industry and leaving it requires substantial divestment of highly specific assets. Companies utilize a high level of design and marketing to promote their product. Some companies occupy more than one segment by utilizing different brands, for example Fiat (Fiat and Ferrari) and BMW (BMW and Mini). The automotive market was one of the most severely hit by the global economic downturn, with automotive manufacturers experiencing record losses, culminating in General Motors and Chrysler having to file for bankruptcy in 2009. It should be noted however, that the industry is showing good signs of recovery. Overall, rivalry within this industry is assessed as strong.
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LEADING COMPANIES
LEADING COMPANIES
Ford Motor Company
Table 5: Ford Motor Company: key facts One American Road, Suite 1026, Dearborn, Michigan 48126, USA 1 313 845 8540 1 313 845 6073 Ford Motor Co Ltd, PO Box 10726, Brentwood, CM14 9HE, GBR www.ford.com December F New York DATAMONITOR
Head office: Telephone: Fax: Local office: Website: Financial year-end: Ticker: Stock exchange: Source: company website
Ford Motor Company (Ford) is one of the largest automotive manufacturers in the world. The company manufactures and distributes automobiles across six continents. With 80 manufacturing facilities worldwide, the company's core and affiliated automotive brands include Ford, Lincoln, Mercury and Volvo. The company conducts its business through two divisions: automotive and financial services. Within these divisions, Ford's automotive business is further classified into reportable segments based upon its geographical and organizational structure. The automotive business division consists of the design, development, manufacture, sale and service of cars, trucks and service parts. Through this division, Ford produces a wide range of vehicles including cars for the small, medium, large and premium segments; trucks; buses/vans (including minivans); fullsize pickups; sport utility vehicles (SUV) and vehicles for the medium/heavy segments. In FY2009, the company sold approximately 4.8 million vehicles at wholesale throughout the world. The company's automotive business is organized into the following segments: Ford North America, Ford South America, Ford Europe, Ford Asia Pacific and Africa, and Volvo. The Ford North America segment primarily includes the sale of Ford, Lincoln and Mercury brand vehicles and related service parts in North America (the US, Canada and Mexico), together with the associated costs to design, develop, manufacture and service these vehicles and parts. This segment also included the sale of Mazda6 vehicles through its consolidated subsidiary, AutoAlliance International (AAI). This business was sold in January 2010.
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LEADING COMPANIES
The Ford South America and Ford Europe segment includes primarily the sale of Ford brand vehicles and related service parts in South America and in Europe (including all parts of Turkey and Russia), respectively. Ford Asia Pacific and Africa segment primarily includes the sale of Ford-brand vehicles and related service parts in the Asia Pacific region and South Africa. The Volvo segment includes primarily the sale of Volvo brand vehicles and related service parts throughout the world (including in North America, South America, Europe, Asia Pacific, and Africa). In addition to producing and selling cars and trucks, Ford also provides a range of after sales services and products through its dealer network. In addition to the products that are sold to dealers for retail sale, Ford also sells cars and trucks to its dealers for sale to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies and governments. The company provides services such as maintenance and light repair, heavy repair, collision, vehicle accessories and extended service warranty. In North America, the company markets these products and services under several brands, including Genuine Ford and Lincoln-Mercury Parts and Service, Ford Custom Accessories, Ford Extended Service Plan, and Motorcraft. At the end of December 2009, the number of dealerships distributing Ford's vehicle brands worldwide was approximately 17.1 thousand (including 11.6 thousand for Ford, 2.2 thousand for Volvo, 1.7 thousand for Mercury, and 1.4 thousand for Lincoln). The financial services division operates through the company subsidiary, Ford Motor Credit (Ford Credit). Ford Credit offers a wide variety of automotive financing products to, and through automotive dealers throughout the world. The predominant share of Ford Credit's business consists of financing Ford vehicles and supporting the company's dealers. Ford Credit's primary financial products fall into three categories: retail financing, wholesale financing, and other financing. Ford Credit also services the finance receivables and leases that it originates and purchases, makes loans to affiliates, purchases receivables from company subsidiaries, and provides selected insurance services. Ford Credit's revenues are earned primarily from payments made under retail installment sale contracts and retail leases, and from payments made under wholesale and other dealer loan financing programs. Ford Credit does business in all states in the US and in all provinces in Canada through automotive dealer financing branches and regional business centers. Outside US, FCE Bank (FCE) is Ford Credit's largest operation. FCE's primary business is to support the sale of Ford's vehicles in Europe through its dealer network. FCE offers a variety of retail, leasing and wholesale finance plans in most countries in which it operates; FCE does business in the UK, Germany and most other European countries. Ford Credit, through its subsidiaries, also operates in the Asia Pacific and Latin American regions. In addition, FCE, through its worldwide trade financing division, provides financing to dealers in countries where typically Ford has no established local presence. Led by the Fiesta, Focus and Ka, Ford strengthened its position as Europe’s second highest-selling brand in 2009. Ford Europe’s market share of 9.1% was a half point increase for the year and set an 11-year high.
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LEADING COMPANIES
Key Metrics The company recorded revenues of $118,308 million in the fiscal year ending December 2009, a decrease of 19.1% compared to fiscal 2008. Its net income was $2,717 million in fiscal 2009, compared to a net loss of $14,672 million in the preceding year. The volume of units sold in Ford’s Europe segment in 2009 amounted to 1.5 million. This represents a percentage change of -13.8% on the previous year’s figure of 1.8 million.
Table 6: $ million
Ford Motor Company: key financials ($) 2005 176,835.0 1,440.0 275,936.0 262,494.0 300,000 2006 160,065.0 (12,613.0) 279,196.0 281,502.0 283,000 2007 172,455.0 (2,723.0) 279,264.0 272,215.0 224,000 2008 146,277.0 (14,672.0) 218,328.0 235,639.0 213,000 2009 118,308.0 2,717.0 194,850.0 201,365.0 176,000
Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings
DATAMONITOR
Table 7: Ratio
Ford Motor Company: key financial ratios 2005 0.8% 2.6% (7.9%) (7.0%) 95.1% 0.5% $589,450 $4,800 2006 (7.9%) (9.5%) 1.2% 7.2% 100.8% (4.5%) $565,601 ($44,569) 2007 (1.6%) 7.7% 0.0% (3.3%) 97.5% (1.0%) $769,888 ($12,156) 2008 (10.0%) (15.2%) (21.8%) (13.4%) 107.9% (5.9%) $686,746 ($68,883) 2009 2.3% (19.1%) (10.8%) (14.5%) 103.3% 1.3% $672,205 $15,438
Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings
DATAMONITOR
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LEADING COMPANIES
Figure 11: Ford Motor Company: revenues & profitability
Source: company filings
DATAMONITOR
Figure 12: Ford Motor Company: assets & liabilities
Source: company filings
DATAMONITOR
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LEADING COMPANIES
Honda Motor Co., Ltd.
Table 8: Head office: Telephone: Fax: Local office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website Honda Motor Co., Ltd.: key facts 1-1, 2-chome, Minami-Aoyama Minato-ku, Tokyo, 107-8556, JPN 81 3 3423 1111 81 3 5412 1515 Honda Motor Europe Ltd, 470 London Road, Slough, Berkshire, SL3 8QY, GBR 44 01753 590590 44 01753 590000 world.honda.com March HMC; 7267 New York; Tokyo DATAMONITOR
Honda Motor Company Limited (Honda) is one of the leading manufacturers of automobiles and the largest manufacturer of motorcycles in the world. The company also provides a range of financial services to its customers and dealers. The company has a total of 396 subsidiaries and 105 affiliates all over the world. The company operates through four business divisions: automobile, motorcycle, financial services, and power products and others. The automobiles business division manufactures passenger cars, multi-wagons, minivans, sport utility vehicle, sports coupe, and mini vehicles. Honda's automobiles use gasoline engines of three, four or sixcylinder powered, diesel engines, and gasoline-electric hybrid systems. The company also offers alternative fuel-powered vehicles such as natural gas, ethanol, and fuel cell vehicles. The company's popular passenger car models include Legend, Accord, Inspire, Civic, Insight, City, Acura RL, Acura TL, Acura TSX, and Acura CSX. In the multi-wagons, minivans, sport utility vehicle, and sports coupe segments, the popular models include Elysion, Odyssey, Step Wagon, Stream, FREED, Edix/FRV, Airwave, Fit/Jazz, Partner Pilot, Ridgeline, CR-V, Element, Crossroad, S2000, Acura MDX, and Acura RDX. The mini cars are marketed under Life, Zest, Vamos, and Acty models. Honda manufactures its automobiles at two sites in Japan: the Saitama factory and the Suzuka factory. The company's other major production sites are located in the US (Ohio, Alabama, and Indiana), Canada (Ontario), UK (Swindon), Thailand (Ayutthaya) India (Uttar Pradesh), and Brazil (Sao Paulo).
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LEADING COMPANIES
Yachiyo Industry Co, one of the company's consolidated subsidiaries, assembles Mini cars for the Japanese domestic market. In FY2009, the company recorded total sales of 3.5 million car units, as compared to unit sales of 3.9 million in FY2008. This represents a decrease of 10.4% compared to FY2008. Out of the total sales, the company sold 556 thousand in Japan; 1.5 million in North America; 350 thousand in Europe; 793 thousand in Asia; and the remaining 322 thousand in other regions. The motorcycle business division produces a range of motorcycles, from the 50 cc class to the 1800 cc class cylinder displacement. Honda's motorcycle line consists of scooters, electric-motor-assisted bicycles, sports bikes, and large touring cycles. The motorcycles use gasoline engines developed by the company that are air or water cooled, two or four cycled, and single, two, four, or six cylinder powered. Honda's motorcycles are produced at the Kumamoto factory in Japan. The company also produces its motorcycles through its subsidiaries in Italy, Spain, Thailand, Vietnam, the Philippines, India, Brazil, and Argentina. In FY2009, the company recorded total sales of 10 million units of motorcycles, as compared to the unit sales of 9.3 million in FY2008. This represents an increase of 8.5% over FY2008. Out of the total sales, the company sold 232 thousand in Japan; 320 thousand in North America; 276 thousand in Europe; 7.5 million in Asia; and remaining 1.8 million in other regions. With an aim of providing sales support for its products, Honda offers a variety of financial services to its customers and dealers through finance subsidiaries in countries including Japan, the US, Canada, the UK, Germany, Brazil, and Thailand. The services of these subsidiaries include retail lending, leasing to customers, and other financial services, such as wholesale financing to dealers. Honda's power products and other businesses division manufactures a range of power products including power tillers, portable generators, general purpose engines, grass cutters, outboard marine engines, water pumps, snow throwers, power carriers, power sprayers, lawn mowers, and lawn tractors (riding lawn mowers). Honda also manufactures the major components and parts used in its products, including engines, frames, and transmissions. The company also makes engines for light business jets as well as automobile fuel cells. Honda also manufactures ASIMO (humanoid robots), which can offer many useful functions such as greeting visitors and informing personnel of the visitor's arrival by transmitting messages and pictures of the visitor's face, and guide visitors to a predetermined location. Concerning the economic environment surrounding Honda, economic conditions in the United States showed moderate recovery, as evidenced by improvement in consumer spending, a bottoming out of private capital investment and other developments, despite concerns about the continuation of the credit contraction, deterioration in the employment situation and other factors.
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LEADING COMPANIES
The economies of Europe also bottomed out, despite concerns such as economic stagnation as a result of the credit contraction, a sales slump following the end of measures supporting new car purchases and a deterioration in employment conditions. Key Metrics The company recorded revenues of $97,681 million in the fiscal year ending March 2010, a decrease of 14.3% compared to fiscal 2009. Its net income was $6,081 million in fiscal 2010, compared to a net income of $1,560 million in the preceding year. Unit sales of motorcycles and automobiles for Europe in 2010 amounted to 448,000. This represents a percentage change of -28.4% on the previous year’s figure of 626,000.
Table 9: $ million
Honda Motor Co., Ltd.: key financials ($) 2006 112,810.3 6,797.3 120,365.9 73,391.6 144,785 2007 126,235.3 6,743.8 137,044.9 86,007.0 167,231 2008 136,661.6 6,831.9 143,637.8 90,283.2 178,960 2009 113,985.8 1,559.9 134,567.6 87,540.4 181,876 2010 97,680.6 6,081.0 132,406.5 79,563.4 176,815
Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings
DATAMONITOR
Table 10: ¥ million Revenues
Honda Motor Co., Ltd.: key financials (¥) 2010 9,908,000.0 11,087,100.0 12,002,834. 10,011,241. 8,579,174.0 0 0 597,000.0 592,300.0 600,039.0 137,005.0 534,088.0 10,571,600. 12,036,500.0 12,615,543. 11,818,917. 11,629,115.0 0 0 0 6,445,900.0 7,553,900.0 7,929,472.0 7,688,573.0 6,987,962.0 DATAMONITOR 2006 2007 2008 2009
Net income (loss) Total assets Total liabilities Source: company filings
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LEADING COMPANIES
Table 11: Ratio
Honda Motor Co., Ltd.: key financial ratios 2006 6.0% 14.5% 13.5% 6.9% 61.0% 6.0% $779,157 $46,948 2007 5.3% 11.9% 13.9% 17.2% 62.8% 5.2% $754,856 $40,326 2008 5.0% 8.3% 4.8% 5.0% 62.9% 4.9% $763,643 $38,176 2009 1.4% (16.6%) (6.3%) (3.0%) 65.1% 1.1% $626,723 $8,577 2010 6.2% (14.3%) (1.6%) (9.1%) 60.1% 4.6% $552,445 $34,392
Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings
DATAMONITOR
Figure 13: Honda Motor Co., Ltd.: revenues & profitability
Source: company filings
DATAMONITOR
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LEADING COMPANIES
Figure 14: Honda Motor Co., Ltd.: assets & liabilities
Source: company filings
DATAMONITOR
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LEADING COMPANIES
Toyota Motor Corporation
Table 12: Head office: Telephone: Fax: Local office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website Toyota Motor Corporation: key facts 1 Toyota-cho, Toyota city, Aichi Prefecture 471-8571, JPN 81 565 28 2121 81 565 23 5721 Toyota Motor Europe, Curzon Square, 25 Park Lane, London W1K 1RA, GBR 44 020 7290 8500 44 020 7290 8502 www.toyota.co.jp March TM; 7203 New York;Tokyo DATAMONITOR
Toyota Motor Corporation (Toyota) is the largest automobile manufacturer in the world. The company is engaged in the design, manufacture, assembly and sale of passenger cars, minivans and trucks and related parts and accessories. The company also provides financing to dealers and their customers for the purchase or lease of Toyota vehicles. Toyota and its affiliates produce automobiles and related parts and components through more than 50 manufacturing companies in 26 countries and regions. Toyota produces automotives in two categories: conventional engine vehicles and hybrid vehicles. The company's product line-up includes sub-compact and compact cars, mini-vehicles, mid-size, luxury, sports and specialty cars, recreational and sport-utility vehicles, pickup trucks, minivans, trucks and buses. The company sells its products under Toyota, Lexus, Hino and Daihatsu brands. Under the Toyota brand, the company includes models such as the Camry, the Corolla and the Avensis. Lexus is the luxury car division of Toyota, and is operated as an entity separate from the Toyota brand. Lexus also produces the luxury sports utility vehicle, the RX330. Hino produces and sells commercial vehicles. Daihatsu Motor produces and sells mini-vehicles and compact cars. In Japan, the company sells luxury cars under the brand name Crown and the Century limousine. The Prius is the company's mass-produced hybrid car. Toyota's sub-compact and compact cars include the four-door Corolla sedan, which is one of Toyota's best selling models. The Yaris, marketed as the Vitz in Japan, is a sub-compact car, designed particularly for European consumers. The company's sport-utility vehicles includes the Sequoia, the 4Runner, the RAV4, the Highlander, the FJ Cruiser and the Land Cruiser; and the Tacoma and Tundra are pickup trucks. Toyota's models for the minivan market include the Alphard, Sienna, Estima, Hiace, Regius Ace, the Noah, the Voxy and the Isis.
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LEADING COMPANIES
In FY2009, the company recorded total sales of 7.5 million units, as compared to the unit sales of 8.9 million in FY2008. Out of the total sales, the company sold 2.2 million vehicles in North America; 1.9 million in Japan; 1.06 million in Europe; 904,000 in Asia; and a remaining 1.4 million in other countries. Also, the company produced a total of 7.05 million units in FY2009, as compared to 8.5 million in FY2008. Toyota's financial services business segment provides finance to dealers and their customers for the purchase or lease of Toyota vehicles. The segment also provides retail financing, retail leasing, wholesale financing, credit cards, housing loans and insurance services. Some of the financial service subsidiaries of the company include Toyota Finance in Japan, Toyota Financial Services, Toyota Credit Canada, Toyota Finance Australia, Toyota Kreditbank and Toyota Financial Services (UK). The company's network of financial services covers 32 countries and regions. In FY2009, the company's net finance receivables outstanding for all of Toyota's dealer and customer financing operations were JPY9.5 trillion ($108 billion) representing a decrease of 7.1% as compared to FY2008. The majority of Toyota's financial services are provided in North America. The company's other business segment includes various non-automotive business activities, such as intelligent transport systems, information technology and telecommunications, e-TOYOTA, housing, marine, and biotechnology and forestation businesses. Toyota Motor Europe NV SA (TME) oversees the wholesale sales and marketing of Toyota and Lexus vehicles, parts and accessories, and Toyota’s European manufacturing and engineering operations. Toyota directly and indirectly employs around 80,000 people in Europe and has invested over E7 billion since 1990. Toyota’s operations in Europe are supported by a network of 31 National Marketing and Sales Companies across 56 countries, a total of around 3,000 sales outlets, and nine manufacturing plants. Key Metrics The company recorded revenues of $215,772 million in the fiscal year ending March 2010, a decrease of 7.7% compared to fiscal 2009. Its net income was $2,385 million in fiscal 2010, compared to a net loss of $4,975 million in the preceding year. Consolidated vehicle sales in Europe during 2010 declined 19.2%, or 204 thousand units, to 858 thousand units. Toyota’s European market share (25 countries) was 5.7%. Lexus sales totaled approximately 26 thousand units. Consolidated production declined 10.2%, to 433 thousand units. Net revenues decreased 28.7%, or JPY866.1 billion ($9.9 billion), to JPY2.1 trillion ($23.4 billion).
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LEADING COMPANIES
Table 13: $ million
Toyota Motor Corporation: key financials ($) 2006 239,521.6 15,623.3 327,131.6 200,179.8 285,977 2007 272,667.7 18,718.6 370,889.3 236,126.1 299,394 2008 299,323.5 19,559.4 369,563.3 234,419.5 324,537 2009 233,745.2 (4,974.9) 330,894.0 216,339.3 320,808 2010 215,771.6 2,384.8 345,550.3 221,098.7 320,590
Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings
DATAMONITOR
Table 14: ¥ million Revenues
Toyota Motor Corporation: key financials (¥) 2006 21,036,909. 0 1,372,180.0 28,731,595. 0 17,581,566. 0 2007 2008 2010 20,529,570. 18,950,973.0 0 (436,937.0) 209,456.0 29,062,037. 30,349,287.0 0 19,000,830. 19,418,844.0 0 DATAMONITOR 2009
Net income (loss) Total assets Total liabilities
23,948,091.0 26,289,240. 0 1,644,032.0 1,717,879.0 32,574,779.0 32,458,320. 0 20,738,687.0 20,588,793. 0
Source: company filings
Table 15: Ratio
Toyota Motor Corporation: key financial ratios 2006 6.5% 13.4% 18.1% 18.9% 61.2% 5.2% $837,556 $54,631 2007 6.9% 13.8% 13.4% 18.0% 63.7% 5.4% $910,732 $62,522 2008 6.5% 9.8% (0.4%) (0.7%) 63.4% 5.3% $922,309 $60,269 2009 (2.1%) (21.9%) (10.5%) (7.7%) 65.4% (1.4%) $728,614 ($15,507) 2010 1.1% (7.7%) 4.4% 2.2% 64.0% 0.7% $673,045 $7,439
Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings
DATAMONITOR
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LEADING COMPANIES
Figure 15: Toyota Motor Corporation: revenues & profitability
Source: company filings
DATAMONITOR
Figure 16: Toyota Motor Corporation: assets & liabilities
Source: company filings
DATAMONITOR
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MARKET FORECASTS
MARKET FORECASTS
Market value forecast
In 2015, the United Kingdom automotive manufacturing industry is forecast to have a value of $25.5 billion, an increase of 52.7% since 2010. The compound annual growth rate of the industry in the period 2010–15 is predicted to be 8.9%. Table 16: Year 2010 2011 2012 2013 2014 2015 CAGR: 2010–15 Source: Datamonitor United Kingdom automotive manufacturing industry value forecast: $ billion, 2010–15 $ billion 16.7 18.1 19.5 21.7 23.0 25.5 £ billion 10.8 11.7 12.6 14.0 14.9 16.5 € billion 12.6 13.7 14.7 16.3 17.3 19.2 % Growth 27.8% 8.9% 7.6% 11.0% 6.1% 10.9% 8.9% DATAMONITOR
Figure 17: United Kingdom automotive manufacturing industry value forecast: $ billion, 2010–15
Source: Datamonitor
DATAMONITOR
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MARKET FORECASTS
Market volume forecast
In 2015, the United Kingdom automotive manufacturing industry is forecast to have a volume of 1.9 million units, an increase of 36.4% since 2010. The compound annual growth rate of the industry in the period 2010–15 is predicted to be 6.4%. Table 17: United Kingdom automotive manufacturing industry volume forecast: million units, 2010–15 Year 2010 2011 2012 2013 2014 2015 CAGR: 2010–15 Source: Datamonitor million units 1.4 1.5 1.6 1.7 1.8 1.9 % Growth 26.4% 4.5% 5.8% 9.2% 3.8% 8.8% 6.4% DATAMONITOR
Figure 18: United Kingdom automotive manufacturing industry volume forecast: million units, 2010–15
Source: Datamonitor
DATAMONITOR
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MACROECONOMIC INDICATORS
MACROECONOMIC INDICATORS
Table 18: Year 2006 2007 2008 2009 2010 Source: Datamonitor United Kingdom size of population (million), 2006–10 Population (million) 60.6 61.0 61.4 61.8 62.1 % Growth 0.6% 0.7% 0.7% 0.6% 0.6% DATAMONITOR
Table 19: Year 2006 2007 2008 2009 2010
United Kingdom gdp (constant 2000 prices, $ billion), 2006–10 Constant 2000 Prices, $ billion 1,719.6 1,765.7 1,764.6 1,678.3 1,704.3 % Growth 2.8% 2.7% (0.1%) (4.9%) 1.6% DATAMONITOR
Source: Datamonitor
Table 20: Year 2006 2007 2008 2009 2010
United Kingdom gdp (current prices, $ billion), 2006–10 Current Prices, $ billion 2,430.7 2,827.8 2,713.2 2,225.3 2,332.4 % Growth 7.4% 16.3% (4.1%) (18.0%) 4.8% DATAMONITOR
Source: Datamonitor
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MACROECONOMIC INDICATORS
Table 21: Year 2006 2007 2008 2009 2010
United Kingdom inflation, 2006–10 Inflation Rate (%) 3.2% 4.3% 3.7% 2.2% 3.2% DATAMONITOR
Source: Datamonitor
Table 22: Year 2006 2007 2008 2009 2010
United Kingdom consumer price index (absolute), 2006–10 Consumer Price Index (2000 = 100) 116.3 121.3 125.8 128.5 132.6 DATAMONITOR
Source: Datamonitor
Table 23: Year 2006 2007 2008 2009 2010
United Kingdom exchange rate, 2006–10 Exchange rate ($/£) 0.5435 0.4999 0.5449 0.6416 0.6475 Exchange rate (€/£) 0.6820 0.6840 0.7973 0.8921 0.8589 DATAMONITOR
Source: Datamonitor
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APPENDIX
APPENDIX
Methodology
Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-checked and presented in a consistent and accessible style. Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, Datamonitor’s in-house databases provide the foundation for all related industry profiles Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends Datamonitor aggregates and analyzes a number of secondary information sources, including: National/Governmental statistics International data (official international sources) National and International trade associations Broker and analyst reports Company Annual Reports Business information libraries and databases
Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date
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APPENDIX
Industry associations
Society of Motor Manufacturers and Traders Ltd. (SMMT) Forbes House, Halkin Street, London SW1X 7DS Tel.: 0044 20 7235 7000 Fax: 0044 20 7235 7112 www.smmt.co.uk International Organization of Motor Vehicle Manufacturers (OICA) 4 rue de Berri, 8éme arrondissement, Paris, France Tel.: 0033 1 4359 0013 Fax: 0033 1 4563 8441 www.oica.net European Automobile Manufacturers' Assocation (Association des Constructeurs Européens
d'Automobiles, ACEA) Avenue des Nerviens 85, B-1040, Brussels, Belgium Tel.: 0032 2 732 55 50 Fax: 0032 2 738 73 10 www.acea.be
Related Datamonitor research
Industry Profile Global car manufacturers Car manufacturers in Asia-Pacific Car manufacturers in Europe Car manufacturers in France Car manufacturers in Germany
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APPENDIX
Disclaimer
All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.
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ABOUT DATAMONITOR
ABOUT DATAMONITOR
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Automotive Manufacturing in the United Kingdom
Reference Code: 0183-2606 Publication Date: May 2011
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EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Market value
The United Kingdom automotive manufacturing industry grew by 27.8% in 2010 to reach a value of $16.7 billion.
Market value forecast
In 2015, the United Kingdom automotive manufacturing industry is forecast to have a value of $25.5 billion, an increase of 52.7% since 2010.
Market volume
The United Kingdom automotive manufacturing industry grew by 26.4% in 2010 to reach a volume of 1.4 million units.
Market volume forecast
In 2015, the United Kingdom automotive manufacturing industry is forecast to have a volume of 1.9 million units, an increase of 36.4% since 2010.
Market segmentation I
Cars is the largest segment of the automotive manufacturing industry in the United Kingdom, accounting for 82.8% of the industry's total value.
Market segmentation II
The United Kingdom accounts for 5.6% of the European automotive manufacturing industry value.
Market rivalry
The UK automotive industry was severely affected by the economic downturn, with a decline in revenues being recorded in 2008 and 2009. However, 2010 saw a strong rebound with revenues growing for the first time since 2007.
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CONTENTS
TABLE OF CONTENTS
EXECUTIVE SUMMARY MARKET OVERVIEW Market definition Research highlights Market analysis MARKET VALUE MARKET VOLUME MARKET SEGMENTATION I MARKET SEGMENTATION II FIVE FORCES ANALYSIS Summary Buyer power Supplier power New entrants Substitutes Rivalry LEADING COMPANIES Ford Motor Company Honda Motor Co., Ltd. Toyota Motor Corporation MARKET FORECASTS Market value forecast Market volume forecast MACROECONOMIC INDICATORS APPENDIX Methodology Industry associations Related Datamonitor research
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CONTENTS
Disclaimer ABOUT DATAMONITOR Premium Reports Summary Reports Datamonitor consulting
39 40 40 40 40
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CONTENTS
LIST OF TABLES
Table 1: Table 2: Table 3: United Kingdom automotive manufacturing industry value: $ billion, 2006–10 United Kingdom automotive manufacturing industry volume: million units, 2006–10 United Kingdom automotive manufacturing industry segmentation I:% share, by value, 2010 United Kingdom automotive manufacturing industry segmentation II: % share, by value, 2010 Ford Motor Company: key facts Ford Motor Company: key financials ($) Ford Motor Company: key financial ratios Honda Motor Co., Ltd.: key facts Honda Motor Co., Ltd.: key financials ($) Honda Motor Co., Ltd.: key financials (¥) Honda Motor Co., Ltd.: key financial ratios Toyota Motor Corporation: key facts Toyota Motor Corporation: key financials ($) Toyota Motor Corporation: key financials (¥) Toyota Motor Corporation: key financial ratios United Kingdom automotive manufacturing industry value forecast: $ billion, 2010–15 United Kingdom automotive manufacturing industry volume forecast: million units, 2010–15 United Kingdom size of population (million), 2006–10 United Kingdom gdp (constant 2000 prices, $ billion), 2006–10 United Kingdom gdp (current prices, $ billion), 2006–10 United Kingdom inflation, 2006–10 United Kingdom consumer price index (absolute), 2006–10 United Kingdom exchange rate, 2006–10 10 11
12
Table 4:
13 20 22 22 24 26 26 27 29 31 31 31 33
Table 5: Table 6: Table 7: Table 8: Table 9: Table 10: Table 11: Table 12: Table 13: Table 14: Table 15: Table 16: Table 17:
34 35 35 35 36 36 36
Table 18: Table 19: Table 20: Table 21: Table 22: Table 23:
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CONTENTS
LIST OF FIGURES
Figure 1: Figure 2: Figure 3: United Kingdom automotive manufacturing industry value: $ billion, 2006–10 United Kingdom automotive manufacturing industry volume: million units, 2006–10 United Kingdom automotive manufacturing industry segmentation I:% share, by value, 2010 United Kingdom automotive manufacturing industry segmentation II: % share, by value, 2010 Forces driving competition in the automotive manufacturing industry in the United Kingdom, 2010 Drivers of buyer power in the automotive manufacturing industry in the United Kingdom, 2010 Drivers of supplier power in the automotive manufacturing industry in the United Kingdom, 2010 Factors influencing the likelihood of new entrants in the automotive manufacturing industry in the United Kingdom, 2010 Factors influencing the threat of substitutes in the automotive manufacturing industry in the United Kingdom, 2010 Drivers of degree of rivalry in the automotive manufacturing industry in the United Kingdom, 2010 Ford Motor Company: revenues & profitability Ford Motor Company: assets & liabilities Honda Motor Co., Ltd.: revenues & profitability Honda Motor Co., Ltd.: assets & liabilities Toyota Motor Corporation: revenues & profitability Toyota Motor Corporation: assets & liabilities United Kingdom automotive manufacturing industry value forecast: $ billion, 2010–15 United Kingdom automotive manufacturing industry volume forecast: million units, 2010–15 10 11
12
Figure 4:
13
Figure 5:
14
Figure 6:
15
Figure 7:
16
Figure 8:
17
Figure 9:
18
Figure 10:
19 23 23 27 28 32 32 33
Figure 11: Figure 12: Figure 13: Figure 14: Figure 15: Figure 16: Figure 17: Figure 18:
34
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MARKET OVERVIEW
MARKET OVERVIEW
Market definition
The automotive manufacturing industry comprises of the production of trucks, passengers cars and motorcycles. The truck manufacturers market comprises of the production of light commercial vehicles (LCVs), heavy trucks, and buses & coaches. LCVs weigh up to 7 tons, heavy trucks weigh greater than 7 tons, and buses & coaches weigh greater than 7 tons. Sports utility vehicles and similar vehicles are not included. T Passenger cars are defined as motor vehicles with at least four wheels, used for the transport of passengers, and comprising no more than eight seats in addition to the driver's seat. Motorcycle manufacturers are producers of powered two-wheelers (PTWs) that are available to the public. All designs and engine capacities, including low-powered bikes referred to as mopeds, are included as well as on-road (street legal), racetrack only and off-road motorcycles. The automotive manufacturing industry value is calculated in terms of manufacturer selling price (MSP), and excludes all taxes and levies. All currency conversions are at constant average annual 2010 exchange rates. For the purposes of this report, Europe consists of Western Europe and Eastern Europe. Western Europe comprises Belgium, Denmark, France, Germany, Greece, Italy, the Netherlands, Norway, Spain, Sweden, Switzerland, Turkey, and the United Kingdom. Eastern Europe comprises the Czech Republic, Hungary, Poland, Romania, Russia, and Ukraine.
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MARKET OVERVIEW
Research highlights
The UK automotive manufacturing industry generated total revenue of $16.7 billion in 2010, representing a compound annual rate of change (CARC) of -3.3% between 2006 and 2010. Industry production volumes decreased with a CARC of -4.5% between 2006 and 2010, to reach a total of 1,406.4 thousand units in 2010. The performance of the industry is forecast to accelerate, with an anticipated CAGR of 8.9% for the fiveyear period 2010 - 2015, which is expected to drive the industry to a value of $25.5 billion by the end of 2015.
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MARKET OVERVIEW
Market analysis
The UK automotive manufacturing industry suffered market declines in 2008 and 2009, as the effects of the recession were felt. The market gained momentum in 2010 and is expected to sustain this recovery over the course of the forecast period, posting strong growth up to and including 2015 The UK automotive manufacturing industry generated total revenue of $16.7 billion in 2010, representing a compound annual rate of change (CARC) of -3.3% between 2006 and 2010. In comparison, the French industry declined with a CARC of -7.3%, while the German industry grew with a CAGR of 2.3%, over the same period, to reach respective values of $32 billion and $112.6 billion in 2010. Industry production volumes are forecast to decrease with a CARC of -4.5% between 2006 and 2010, to reach a total of 1,406.4 thousand units in 2010. The industry's volume is expected to rise to 1,917.8 thousand units by the end of 2015, representing a CAGR of 6.4% for the 2010-2015 period. The Cars segment was the industry's most lucrative in 2010, with total revenue of $13.8 billion, equivalent to 82.8% of the industry's overall value. The Trucks segment contributed revenue of $2.6 billion in 2010, equating to 15.9% of the industry's aggregate value. The performance of the industry is forecast to accelerate, with an anticipated CAGR of 8.9% for the fiveyear period 2010 - 2015, which is expected to drive the industry to a value of $25.5 billion by the end of 2015. Comparatively, the French and German industries will grow with CAGRs of 5.8% and 2.8% respectively, over the same period, to reach respective values of $42.4 billion and $129.6 billion in 2015.
United Kingdom - Automotive Manufacturing
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MARKET VALUE
MARKET VALUE
The United Kingdom automotive manufacturing industry grew by 27.8% in 2010 to reach a value of $16.7 billion. The compound annual rate of change of the industry in the period 2006–10 was -3.3%. Table 1: Year 2006 2007 2008 2009 2010 CAGR: 2006–10 Source: Datamonitor United Kingdom automotive manufacturing industry value: $ billion, 2006–10 $ billion 19.1 21.0 20.3 13.0 16.7 £ billion 12.4 13.6 13.1 8.4 10.8 € billion 14.4 15.8 15.3 9.8 12.6 % Growth 10.0% (3.4%) (35.7%) 27.8% (3.3%) DATAMONITOR
Figure 1:
United Kingdom automotive manufacturing industry value: $ billion, 2006–10
Source: Datamonitor
DATAMONITOR
United Kingdom - Automotive Manufacturing
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MARKET VOLUME
MARKET VOLUME
The United Kingdom automotive manufacturing industry grew by 26.4% in 2010 to reach a volume of 1.4 million units. The compound annual rate of change of the industry in the period 2006–10 was -4.5%. Table 2: Year 2006 2007 2008 2009 2010 CAGR: 2006–10 Source: Datamonitor United Kingdom automotive manufacturing industry volume: million units, 2006–10 million units 1.7 1.8 1.7 1.1 1.4 % Growth 5.6% (5.5%) (33.9%) 26.4% (4.5%) DATAMONITOR
Figure 2:
United Kingdom automotive manufacturing industry volume: million units, 2006–10
Source: Datamonitor
DATAMONITOR
United Kingdom - Automotive Manufacturing
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MARKET SEGMENTATION I
MARKET SEGMENTATION I
Cars is the largest segment of the automotive manufacturing industry in the United Kingdom, accounting for 82.8% of the industry's total value. The trucks segment accounts for a further 15.9% of the industry. Table 3: United Kingdom automotive manufacturing industry segmentation I:% share, by value, 2010 Category Cars Trucks Motorcycles Total Source: Datamonitor % Share 82.8% 15.9% 1.3% 100% DATAMONITOR
Figure 3:
United Kingdom automotive manufacturing industry segmentation I:% share, by value, 2010
Source: Datamonitor
DATAMONITOR
United Kingdom - Automotive Manufacturing
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MARKET SEGMENTATION II
MARKET SEGMENTATION II
The United Kingdom accounts for 5.6% of the European automotive manufacturing industry value. Germany accounts for a further 37.9% of the European industry. Table 4: United Kingdom automotive manufacturing industry segmentation II: % share, by value, 2010 Category Germany Spain France Italy United Kingdom Rest of Europe Total Source: Datamonitor % Share 37.9% 12.7% 10.8% 5.9% 5.6% 27.0% 100% DATAMONITOR
Figure 4:
United Kingdom automotive manufacturing industry segmentation II: % share, by value, 2010
Source: Datamonitor
DATAMONITOR
United Kingdom - Automotive Manufacturing
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FIVE FORCES ANALYSIS
FIVE FORCES ANALYSIS
The automotive manufacturing market will be analyzed taking manufacturers of cars, trucks and motorcycles as players. The key buyers will be taken as car, truck and motorcycle dealerships, and manufacturers of raw materials and ready made components as the key suppliers.
Summary
Figure 5: Forces driving competition in the automotive manufacturing industry in the United Kingdom, 2010
Source: Datamonitor
DATAMONITOR
The UK automotive industry was severely affected by the economic downturn, with a decline in revenues being recorded in 2008 and 2009. However, 2010 saw a strong rebound with revenues growing for the first time since 2007. Buyer power in this industry is weakened by the high switching costs faced by dealerships and customer loyalty with respect to dominating brands. Amongst the suppliers there are providers of commodity items such as metals, and their power is boosted due to their large size, consolidation of the industry and the fact that automotive manufacturers account for only a small proportion of their revenues. For new entrants to the industry, setting up a production facility involves large capital outlay thus constituting a significant entry barrier and high fixed cost. Furthermore the global tightening of emission standards is ramping up costs further. Substitutes present a moderate threat in the form of used vehicles and other modes of transport. Rivalry is boosted by the presence of large, international incumbents.
United Kingdom - Automotive Manufacturing
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FIVE FORCES ANALYSIS
Buyer power
Figure 6: Drivers of buyer power in the automotive manufacturing industry in the United Kingdom, 2010
Source: Datamonitor
DATAMONITOR
Main buyers within this industry as a whole are dealerships. However, end-user pull-through is important. Dealerships tend to have exclusive contractual agreements with manufacturers and as such switching costs are very high. Manufacturers rarely sell end to end consumers and tend to use a dealership to reach the end market. This strengthens buyer power to an extent as manufacturers are reliant on dealerships. However, similarly dealerships are also highly dependent on manufacturers – the product is almost completely indispensible to them, which further undermines buyer power. This industry is dominated by large international players such as Hyundai and Suzuki. This means that buyers within the industry face a relatively low concentration of players, indicating a lower level of choice. However, the concentration of the automotive industry varies significantly between countries and regions. There is a relatively large number of buyers within the industry, which coupled with a high level of product differentiation weakens buyer power further. Dealers are forced to sell brands and models preferred by consumers, which tends to reduce the power even more. It is also unlikely for dealers to integrate backwards into the manufacturers' operating area due to the different nature of the business, although it should be noted that many of the dealerships are examples of the manufacturer forward integrating. Overall, buyer power is assessed as relatively weak in this industry.
United Kingdom - Automotive Manufacturing
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FIVE FORCES ANALYSIS
Supplier power
Figure 7: Drivers of supplier power in the automotive manufacturing industry in the United Kingdom, 2010
Source: Datamonitor
DATAMONITOR
Key inputs required by automotive manufacturers are typically commodity items, such as metals and more differentiated inputs like fabricated components. These items tend to be produced by other companies rather than being manufactured in-house. Amongst the providers, there are large, multinationals with a strong presence within global markets which boosts their power. To ensure timely delivery of such materials, market players often sign contracts with their providers, thus strengthening their power. With fairly low differentiation of raw materials, there is often little to distinguish between some suppliers, which reduces supplier power. However, the importance of high quality raw materials and components to manufacturers (particularly in relation to safety concerns) can increase supplier power. Typical suppliers are likely to sell to a wide variety of manufacturing companies, with the automotive market likely to be contributing only a small share of total supplier revenues. This further strengthens the position of suppliers. Overall, supplier power is moderate.
United Kingdom - Automotive Manufacturing
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FIVE FORCES ANALYSIS
New entrants
Figure 8: Factors influencing the likelihood of new entrants in the automotive manufacturing industry in the United Kingdom, 2010
Source: Datamonitor
DATAMONITOR
Brand strength and reputation are highly important in the automotive manufacture industry, and it is therefore quite difficult for new players to directly enter a particular country's market. Those that succeed often do so through the introduction of successful foreign brands. Setting up a production facility involves large capital outlay thus constituting a significant entry barrier and resulting in high fixed costs. Additionally, leading automotive brands such as Ford and Volkswagen enjoy an exceptionally high level of brand recognition, which is reflected in their high sales volumes and market dominance. Due to the existing strength of such brands it is difficult for new entrants to introduce their products into the market. However, sales are sometimes sensitive to price and it may be possible for manufacturers to enter markets through the sale of budget vehicles. For example, the Chinese Qianjiang group has had a high degree of success entering European markets with the sale of its Keeway brand of budget motorcycles. Furthermore, the global tightening of emission standards is ramping up costs further as automotive redesigns are required to conform to new emissions laws. Such a trend can trigger the demand for newer, more economical engines, involving higher costs of R&D spending. The EU has some of the strongest emissions guidelines having adopted Euro V in 2010. Currently member states are not allowed to sell vehicles that do not meet the standards. The global economic downturn impacted this industry heavily in 2008 and 2009 with a sharp fall in revenues recorded. However, the industry appears to be recovering well. Overall, the likelihood of new entrants to this industry is assessed as weak.
United Kingdom - Automotive Manufacturing
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FIVE FORCES ANALYSIS
Substitutes
Figure 9: Factors influencing the threat of substitutes in the automotive manufacturing industry in the United Kingdom, 2010
Source: Datamonitor
DATAMONITOR
The main substitute threatening players in this industry is used vehicles. Dealerships which sell both new and used vehicles are likely to have sold more of the latter during the global economic downturn as consumers avoid making big purchases, e.g. new cars. On the other hand, new emission standards, together with technological solutions, may lead to a situation where it may be more economical in the long run (e.g. in terms of tax, fuel costs etc.) to purchase a new vehicle. A further substitute is alternative modes of transport. For example, consumers may use public transport as opposed to having a personal vehicle, or businesses may choose road or rail transport for goods as opposed to owning a truck. Overall, the threat of substitutes is moderate.
United Kingdom - Automotive Manufacturing
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FIVE FORCES ANALYSIS
Rivalry
Figure 10: Drivers of degree of rivalry in the automotive manufacturing industry in the United Kingdom, 2010
Source: Datamonitor
DATAMONITOR
The automotive manufacturing market consists of a relatively small number of large-scale companies. The market is fairly consolidated, as companies have looked to increase their market share in the face of limited growth in large but mature markets, e.g. Western Europe. Rivalry is slightly reduced due to a degree of differentiation, with several different segments within the industry, for example ‘luxury’ vehicles and ‘budget’ vehicles. Fixed costs and exit barriers are of significant meaning within this industry and leaving it requires substantial divestment of highly specific assets. Companies utilize a high level of design and marketing to promote their product. Some companies occupy more than one segment by utilizing different brands, for example Fiat (Fiat and Ferrari) and BMW (BMW and Mini). The automotive market was one of the most severely hit by the global economic downturn, with automotive manufacturers experiencing record losses, culminating in General Motors and Chrysler having to file for bankruptcy in 2009. It should be noted however, that the industry is showing good signs of recovery. Overall, rivalry within this industry is assessed as strong.
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LEADING COMPANIES
LEADING COMPANIES
Ford Motor Company
Table 5: Ford Motor Company: key facts One American Road, Suite 1026, Dearborn, Michigan 48126, USA 1 313 845 8540 1 313 845 6073 Ford Motor Co Ltd, PO Box 10726, Brentwood, CM14 9HE, GBR www.ford.com December F New York DATAMONITOR
Head office: Telephone: Fax: Local office: Website: Financial year-end: Ticker: Stock exchange: Source: company website
Ford Motor Company (Ford) is one of the largest automotive manufacturers in the world. The company manufactures and distributes automobiles across six continents. With 80 manufacturing facilities worldwide, the company's core and affiliated automotive brands include Ford, Lincoln, Mercury and Volvo. The company conducts its business through two divisions: automotive and financial services. Within these divisions, Ford's automotive business is further classified into reportable segments based upon its geographical and organizational structure. The automotive business division consists of the design, development, manufacture, sale and service of cars, trucks and service parts. Through this division, Ford produces a wide range of vehicles including cars for the small, medium, large and premium segments; trucks; buses/vans (including minivans); fullsize pickups; sport utility vehicles (SUV) and vehicles for the medium/heavy segments. In FY2009, the company sold approximately 4.8 million vehicles at wholesale throughout the world. The company's automotive business is organized into the following segments: Ford North America, Ford South America, Ford Europe, Ford Asia Pacific and Africa, and Volvo. The Ford North America segment primarily includes the sale of Ford, Lincoln and Mercury brand vehicles and related service parts in North America (the US, Canada and Mexico), together with the associated costs to design, develop, manufacture and service these vehicles and parts. This segment also included the sale of Mazda6 vehicles through its consolidated subsidiary, AutoAlliance International (AAI). This business was sold in January 2010.
United Kingdom - Automotive Manufacturing
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LEADING COMPANIES
The Ford South America and Ford Europe segment includes primarily the sale of Ford brand vehicles and related service parts in South America and in Europe (including all parts of Turkey and Russia), respectively. Ford Asia Pacific and Africa segment primarily includes the sale of Ford-brand vehicles and related service parts in the Asia Pacific region and South Africa. The Volvo segment includes primarily the sale of Volvo brand vehicles and related service parts throughout the world (including in North America, South America, Europe, Asia Pacific, and Africa). In addition to producing and selling cars and trucks, Ford also provides a range of after sales services and products through its dealer network. In addition to the products that are sold to dealers for retail sale, Ford also sells cars and trucks to its dealers for sale to fleet customers, including daily rental car companies, commercial fleet customers, leasing companies and governments. The company provides services such as maintenance and light repair, heavy repair, collision, vehicle accessories and extended service warranty. In North America, the company markets these products and services under several brands, including Genuine Ford and Lincoln-Mercury Parts and Service, Ford Custom Accessories, Ford Extended Service Plan, and Motorcraft. At the end of December 2009, the number of dealerships distributing Ford's vehicle brands worldwide was approximately 17.1 thousand (including 11.6 thousand for Ford, 2.2 thousand for Volvo, 1.7 thousand for Mercury, and 1.4 thousand for Lincoln). The financial services division operates through the company subsidiary, Ford Motor Credit (Ford Credit). Ford Credit offers a wide variety of automotive financing products to, and through automotive dealers throughout the world. The predominant share of Ford Credit's business consists of financing Ford vehicles and supporting the company's dealers. Ford Credit's primary financial products fall into three categories: retail financing, wholesale financing, and other financing. Ford Credit also services the finance receivables and leases that it originates and purchases, makes loans to affiliates, purchases receivables from company subsidiaries, and provides selected insurance services. Ford Credit's revenues are earned primarily from payments made under retail installment sale contracts and retail leases, and from payments made under wholesale and other dealer loan financing programs. Ford Credit does business in all states in the US and in all provinces in Canada through automotive dealer financing branches and regional business centers. Outside US, FCE Bank (FCE) is Ford Credit's largest operation. FCE's primary business is to support the sale of Ford's vehicles in Europe through its dealer network. FCE offers a variety of retail, leasing and wholesale finance plans in most countries in which it operates; FCE does business in the UK, Germany and most other European countries. Ford Credit, through its subsidiaries, also operates in the Asia Pacific and Latin American regions. In addition, FCE, through its worldwide trade financing division, provides financing to dealers in countries where typically Ford has no established local presence. Led by the Fiesta, Focus and Ka, Ford strengthened its position as Europe’s second highest-selling brand in 2009. Ford Europe’s market share of 9.1% was a half point increase for the year and set an 11-year high.
United Kingdom - Automotive Manufacturing
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LEADING COMPANIES
Key Metrics The company recorded revenues of $118,308 million in the fiscal year ending December 2009, a decrease of 19.1% compared to fiscal 2008. Its net income was $2,717 million in fiscal 2009, compared to a net loss of $14,672 million in the preceding year. The volume of units sold in Ford’s Europe segment in 2009 amounted to 1.5 million. This represents a percentage change of -13.8% on the previous year’s figure of 1.8 million.
Table 6: $ million
Ford Motor Company: key financials ($) 2005 176,835.0 1,440.0 275,936.0 262,494.0 300,000 2006 160,065.0 (12,613.0) 279,196.0 281,502.0 283,000 2007 172,455.0 (2,723.0) 279,264.0 272,215.0 224,000 2008 146,277.0 (14,672.0) 218,328.0 235,639.0 213,000 2009 118,308.0 2,717.0 194,850.0 201,365.0 176,000
Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings
DATAMONITOR
Table 7: Ratio
Ford Motor Company: key financial ratios 2005 0.8% 2.6% (7.9%) (7.0%) 95.1% 0.5% $589,450 $4,800 2006 (7.9%) (9.5%) 1.2% 7.2% 100.8% (4.5%) $565,601 ($44,569) 2007 (1.6%) 7.7% 0.0% (3.3%) 97.5% (1.0%) $769,888 ($12,156) 2008 (10.0%) (15.2%) (21.8%) (13.4%) 107.9% (5.9%) $686,746 ($68,883) 2009 2.3% (19.1%) (10.8%) (14.5%) 103.3% 1.3% $672,205 $15,438
Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings
DATAMONITOR
United Kingdom - Automotive Manufacturing
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LEADING COMPANIES
Figure 11: Ford Motor Company: revenues & profitability
Source: company filings
DATAMONITOR
Figure 12: Ford Motor Company: assets & liabilities
Source: company filings
DATAMONITOR
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LEADING COMPANIES
Honda Motor Co., Ltd.
Table 8: Head office: Telephone: Fax: Local office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website Honda Motor Co., Ltd.: key facts 1-1, 2-chome, Minami-Aoyama Minato-ku, Tokyo, 107-8556, JPN 81 3 3423 1111 81 3 5412 1515 Honda Motor Europe Ltd, 470 London Road, Slough, Berkshire, SL3 8QY, GBR 44 01753 590590 44 01753 590000 world.honda.com March HMC; 7267 New York; Tokyo DATAMONITOR
Honda Motor Company Limited (Honda) is one of the leading manufacturers of automobiles and the largest manufacturer of motorcycles in the world. The company also provides a range of financial services to its customers and dealers. The company has a total of 396 subsidiaries and 105 affiliates all over the world. The company operates through four business divisions: automobile, motorcycle, financial services, and power products and others. The automobiles business division manufactures passenger cars, multi-wagons, minivans, sport utility vehicle, sports coupe, and mini vehicles. Honda's automobiles use gasoline engines of three, four or sixcylinder powered, diesel engines, and gasoline-electric hybrid systems. The company also offers alternative fuel-powered vehicles such as natural gas, ethanol, and fuel cell vehicles. The company's popular passenger car models include Legend, Accord, Inspire, Civic, Insight, City, Acura RL, Acura TL, Acura TSX, and Acura CSX. In the multi-wagons, minivans, sport utility vehicle, and sports coupe segments, the popular models include Elysion, Odyssey, Step Wagon, Stream, FREED, Edix/FRV, Airwave, Fit/Jazz, Partner Pilot, Ridgeline, CR-V, Element, Crossroad, S2000, Acura MDX, and Acura RDX. The mini cars are marketed under Life, Zest, Vamos, and Acty models. Honda manufactures its automobiles at two sites in Japan: the Saitama factory and the Suzuka factory. The company's other major production sites are located in the US (Ohio, Alabama, and Indiana), Canada (Ontario), UK (Swindon), Thailand (Ayutthaya) India (Uttar Pradesh), and Brazil (Sao Paulo).
United Kingdom - Automotive Manufacturing
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LEADING COMPANIES
Yachiyo Industry Co, one of the company's consolidated subsidiaries, assembles Mini cars for the Japanese domestic market. In FY2009, the company recorded total sales of 3.5 million car units, as compared to unit sales of 3.9 million in FY2008. This represents a decrease of 10.4% compared to FY2008. Out of the total sales, the company sold 556 thousand in Japan; 1.5 million in North America; 350 thousand in Europe; 793 thousand in Asia; and the remaining 322 thousand in other regions. The motorcycle business division produces a range of motorcycles, from the 50 cc class to the 1800 cc class cylinder displacement. Honda's motorcycle line consists of scooters, electric-motor-assisted bicycles, sports bikes, and large touring cycles. The motorcycles use gasoline engines developed by the company that are air or water cooled, two or four cycled, and single, two, four, or six cylinder powered. Honda's motorcycles are produced at the Kumamoto factory in Japan. The company also produces its motorcycles through its subsidiaries in Italy, Spain, Thailand, Vietnam, the Philippines, India, Brazil, and Argentina. In FY2009, the company recorded total sales of 10 million units of motorcycles, as compared to the unit sales of 9.3 million in FY2008. This represents an increase of 8.5% over FY2008. Out of the total sales, the company sold 232 thousand in Japan; 320 thousand in North America; 276 thousand in Europe; 7.5 million in Asia; and remaining 1.8 million in other regions. With an aim of providing sales support for its products, Honda offers a variety of financial services to its customers and dealers through finance subsidiaries in countries including Japan, the US, Canada, the UK, Germany, Brazil, and Thailand. The services of these subsidiaries include retail lending, leasing to customers, and other financial services, such as wholesale financing to dealers. Honda's power products and other businesses division manufactures a range of power products including power tillers, portable generators, general purpose engines, grass cutters, outboard marine engines, water pumps, snow throwers, power carriers, power sprayers, lawn mowers, and lawn tractors (riding lawn mowers). Honda also manufactures the major components and parts used in its products, including engines, frames, and transmissions. The company also makes engines for light business jets as well as automobile fuel cells. Honda also manufactures ASIMO (humanoid robots), which can offer many useful functions such as greeting visitors and informing personnel of the visitor's arrival by transmitting messages and pictures of the visitor's face, and guide visitors to a predetermined location. Concerning the economic environment surrounding Honda, economic conditions in the United States showed moderate recovery, as evidenced by improvement in consumer spending, a bottoming out of private capital investment and other developments, despite concerns about the continuation of the credit contraction, deterioration in the employment situation and other factors.
United Kingdom - Automotive Manufacturing
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LEADING COMPANIES
The economies of Europe also bottomed out, despite concerns such as economic stagnation as a result of the credit contraction, a sales slump following the end of measures supporting new car purchases and a deterioration in employment conditions. Key Metrics The company recorded revenues of $97,681 million in the fiscal year ending March 2010, a decrease of 14.3% compared to fiscal 2009. Its net income was $6,081 million in fiscal 2010, compared to a net income of $1,560 million in the preceding year. Unit sales of motorcycles and automobiles for Europe in 2010 amounted to 448,000. This represents a percentage change of -28.4% on the previous year’s figure of 626,000.
Table 9: $ million
Honda Motor Co., Ltd.: key financials ($) 2006 112,810.3 6,797.3 120,365.9 73,391.6 144,785 2007 126,235.3 6,743.8 137,044.9 86,007.0 167,231 2008 136,661.6 6,831.9 143,637.8 90,283.2 178,960 2009 113,985.8 1,559.9 134,567.6 87,540.4 181,876 2010 97,680.6 6,081.0 132,406.5 79,563.4 176,815
Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings
DATAMONITOR
Table 10: ¥ million Revenues
Honda Motor Co., Ltd.: key financials (¥) 2010 9,908,000.0 11,087,100.0 12,002,834. 10,011,241. 8,579,174.0 0 0 597,000.0 592,300.0 600,039.0 137,005.0 534,088.0 10,571,600. 12,036,500.0 12,615,543. 11,818,917. 11,629,115.0 0 0 0 6,445,900.0 7,553,900.0 7,929,472.0 7,688,573.0 6,987,962.0 DATAMONITOR 2006 2007 2008 2009
Net income (loss) Total assets Total liabilities Source: company filings
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LEADING COMPANIES
Table 11: Ratio
Honda Motor Co., Ltd.: key financial ratios 2006 6.0% 14.5% 13.5% 6.9% 61.0% 6.0% $779,157 $46,948 2007 5.3% 11.9% 13.9% 17.2% 62.8% 5.2% $754,856 $40,326 2008 5.0% 8.3% 4.8% 5.0% 62.9% 4.9% $763,643 $38,176 2009 1.4% (16.6%) (6.3%) (3.0%) 65.1% 1.1% $626,723 $8,577 2010 6.2% (14.3%) (1.6%) (9.1%) 60.1% 4.6% $552,445 $34,392
Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings
DATAMONITOR
Figure 13: Honda Motor Co., Ltd.: revenues & profitability
Source: company filings
DATAMONITOR
United Kingdom - Automotive Manufacturing
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LEADING COMPANIES
Figure 14: Honda Motor Co., Ltd.: assets & liabilities
Source: company filings
DATAMONITOR
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LEADING COMPANIES
Toyota Motor Corporation
Table 12: Head office: Telephone: Fax: Local office: Telephone: Fax: Website: Financial year-end: Ticker: Stock exchange: Source: company website Toyota Motor Corporation: key facts 1 Toyota-cho, Toyota city, Aichi Prefecture 471-8571, JPN 81 565 28 2121 81 565 23 5721 Toyota Motor Europe, Curzon Square, 25 Park Lane, London W1K 1RA, GBR 44 020 7290 8500 44 020 7290 8502 www.toyota.co.jp March TM; 7203 New York;Tokyo DATAMONITOR
Toyota Motor Corporation (Toyota) is the largest automobile manufacturer in the world. The company is engaged in the design, manufacture, assembly and sale of passenger cars, minivans and trucks and related parts and accessories. The company also provides financing to dealers and their customers for the purchase or lease of Toyota vehicles. Toyota and its affiliates produce automobiles and related parts and components through more than 50 manufacturing companies in 26 countries and regions. Toyota produces automotives in two categories: conventional engine vehicles and hybrid vehicles. The company's product line-up includes sub-compact and compact cars, mini-vehicles, mid-size, luxury, sports and specialty cars, recreational and sport-utility vehicles, pickup trucks, minivans, trucks and buses. The company sells its products under Toyota, Lexus, Hino and Daihatsu brands. Under the Toyota brand, the company includes models such as the Camry, the Corolla and the Avensis. Lexus is the luxury car division of Toyota, and is operated as an entity separate from the Toyota brand. Lexus also produces the luxury sports utility vehicle, the RX330. Hino produces and sells commercial vehicles. Daihatsu Motor produces and sells mini-vehicles and compact cars. In Japan, the company sells luxury cars under the brand name Crown and the Century limousine. The Prius is the company's mass-produced hybrid car. Toyota's sub-compact and compact cars include the four-door Corolla sedan, which is one of Toyota's best selling models. The Yaris, marketed as the Vitz in Japan, is a sub-compact car, designed particularly for European consumers. The company's sport-utility vehicles includes the Sequoia, the 4Runner, the RAV4, the Highlander, the FJ Cruiser and the Land Cruiser; and the Tacoma and Tundra are pickup trucks. Toyota's models for the minivan market include the Alphard, Sienna, Estima, Hiace, Regius Ace, the Noah, the Voxy and the Isis.
United Kingdom - Automotive Manufacturing
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LEADING COMPANIES
In FY2009, the company recorded total sales of 7.5 million units, as compared to the unit sales of 8.9 million in FY2008. Out of the total sales, the company sold 2.2 million vehicles in North America; 1.9 million in Japan; 1.06 million in Europe; 904,000 in Asia; and a remaining 1.4 million in other countries. Also, the company produced a total of 7.05 million units in FY2009, as compared to 8.5 million in FY2008. Toyota's financial services business segment provides finance to dealers and their customers for the purchase or lease of Toyota vehicles. The segment also provides retail financing, retail leasing, wholesale financing, credit cards, housing loans and insurance services. Some of the financial service subsidiaries of the company include Toyota Finance in Japan, Toyota Financial Services, Toyota Credit Canada, Toyota Finance Australia, Toyota Kreditbank and Toyota Financial Services (UK). The company's network of financial services covers 32 countries and regions. In FY2009, the company's net finance receivables outstanding for all of Toyota's dealer and customer financing operations were JPY9.5 trillion ($108 billion) representing a decrease of 7.1% as compared to FY2008. The majority of Toyota's financial services are provided in North America. The company's other business segment includes various non-automotive business activities, such as intelligent transport systems, information technology and telecommunications, e-TOYOTA, housing, marine, and biotechnology and forestation businesses. Toyota Motor Europe NV SA (TME) oversees the wholesale sales and marketing of Toyota and Lexus vehicles, parts and accessories, and Toyota’s European manufacturing and engineering operations. Toyota directly and indirectly employs around 80,000 people in Europe and has invested over E7 billion since 1990. Toyota’s operations in Europe are supported by a network of 31 National Marketing and Sales Companies across 56 countries, a total of around 3,000 sales outlets, and nine manufacturing plants. Key Metrics The company recorded revenues of $215,772 million in the fiscal year ending March 2010, a decrease of 7.7% compared to fiscal 2009. Its net income was $2,385 million in fiscal 2010, compared to a net loss of $4,975 million in the preceding year. Consolidated vehicle sales in Europe during 2010 declined 19.2%, or 204 thousand units, to 858 thousand units. Toyota’s European market share (25 countries) was 5.7%. Lexus sales totaled approximately 26 thousand units. Consolidated production declined 10.2%, to 433 thousand units. Net revenues decreased 28.7%, or JPY866.1 billion ($9.9 billion), to JPY2.1 trillion ($23.4 billion).
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LEADING COMPANIES
Table 13: $ million
Toyota Motor Corporation: key financials ($) 2006 239,521.6 15,623.3 327,131.6 200,179.8 285,977 2007 272,667.7 18,718.6 370,889.3 236,126.1 299,394 2008 299,323.5 19,559.4 369,563.3 234,419.5 324,537 2009 233,745.2 (4,974.9) 330,894.0 216,339.3 320,808 2010 215,771.6 2,384.8 345,550.3 221,098.7 320,590
Revenues Net income (loss) Total assets Total liabilities Employees Source: company filings
DATAMONITOR
Table 14: ¥ million Revenues
Toyota Motor Corporation: key financials (¥) 2006 21,036,909. 0 1,372,180.0 28,731,595. 0 17,581,566. 0 2007 2008 2010 20,529,570. 18,950,973.0 0 (436,937.0) 209,456.0 29,062,037. 30,349,287.0 0 19,000,830. 19,418,844.0 0 DATAMONITOR 2009
Net income (loss) Total assets Total liabilities
23,948,091.0 26,289,240. 0 1,644,032.0 1,717,879.0 32,574,779.0 32,458,320. 0 20,738,687.0 20,588,793. 0
Source: company filings
Table 15: Ratio
Toyota Motor Corporation: key financial ratios 2006 6.5% 13.4% 18.1% 18.9% 61.2% 5.2% $837,556 $54,631 2007 6.9% 13.8% 13.4% 18.0% 63.7% 5.4% $910,732 $62,522 2008 6.5% 9.8% (0.4%) (0.7%) 63.4% 5.3% $922,309 $60,269 2009 (2.1%) (21.9%) (10.5%) (7.7%) 65.4% (1.4%) $728,614 ($15,507) 2010 1.1% (7.7%) 4.4% 2.2% 64.0% 0.7% $673,045 $7,439
Profit margin Revenue growth Asset growth Liabilities growth Debt/asset ratio Return on assets Revenue per employee Profit per employee Source: company filings
DATAMONITOR
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LEADING COMPANIES
Figure 15: Toyota Motor Corporation: revenues & profitability
Source: company filings
DATAMONITOR
Figure 16: Toyota Motor Corporation: assets & liabilities
Source: company filings
DATAMONITOR
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MARKET FORECASTS
MARKET FORECASTS
Market value forecast
In 2015, the United Kingdom automotive manufacturing industry is forecast to have a value of $25.5 billion, an increase of 52.7% since 2010. The compound annual growth rate of the industry in the period 2010–15 is predicted to be 8.9%. Table 16: Year 2010 2011 2012 2013 2014 2015 CAGR: 2010–15 Source: Datamonitor United Kingdom automotive manufacturing industry value forecast: $ billion, 2010–15 $ billion 16.7 18.1 19.5 21.7 23.0 25.5 £ billion 10.8 11.7 12.6 14.0 14.9 16.5 € billion 12.6 13.7 14.7 16.3 17.3 19.2 % Growth 27.8% 8.9% 7.6% 11.0% 6.1% 10.9% 8.9% DATAMONITOR
Figure 17: United Kingdom automotive manufacturing industry value forecast: $ billion, 2010–15
Source: Datamonitor
DATAMONITOR
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MARKET FORECASTS
Market volume forecast
In 2015, the United Kingdom automotive manufacturing industry is forecast to have a volume of 1.9 million units, an increase of 36.4% since 2010. The compound annual growth rate of the industry in the period 2010–15 is predicted to be 6.4%. Table 17: United Kingdom automotive manufacturing industry volume forecast: million units, 2010–15 Year 2010 2011 2012 2013 2014 2015 CAGR: 2010–15 Source: Datamonitor million units 1.4 1.5 1.6 1.7 1.8 1.9 % Growth 26.4% 4.5% 5.8% 9.2% 3.8% 8.8% 6.4% DATAMONITOR
Figure 18: United Kingdom automotive manufacturing industry volume forecast: million units, 2010–15
Source: Datamonitor
DATAMONITOR
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MACROECONOMIC INDICATORS
MACROECONOMIC INDICATORS
Table 18: Year 2006 2007 2008 2009 2010 Source: Datamonitor United Kingdom size of population (million), 2006–10 Population (million) 60.6 61.0 61.4 61.8 62.1 % Growth 0.6% 0.7% 0.7% 0.6% 0.6% DATAMONITOR
Table 19: Year 2006 2007 2008 2009 2010
United Kingdom gdp (constant 2000 prices, $ billion), 2006–10 Constant 2000 Prices, $ billion 1,719.6 1,765.7 1,764.6 1,678.3 1,704.3 % Growth 2.8% 2.7% (0.1%) (4.9%) 1.6% DATAMONITOR
Source: Datamonitor
Table 20: Year 2006 2007 2008 2009 2010
United Kingdom gdp (current prices, $ billion), 2006–10 Current Prices, $ billion 2,430.7 2,827.8 2,713.2 2,225.3 2,332.4 % Growth 7.4% 16.3% (4.1%) (18.0%) 4.8% DATAMONITOR
Source: Datamonitor
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MACROECONOMIC INDICATORS
Table 21: Year 2006 2007 2008 2009 2010
United Kingdom inflation, 2006–10 Inflation Rate (%) 3.2% 4.3% 3.7% 2.2% 3.2% DATAMONITOR
Source: Datamonitor
Table 22: Year 2006 2007 2008 2009 2010
United Kingdom consumer price index (absolute), 2006–10 Consumer Price Index (2000 = 100) 116.3 121.3 125.8 128.5 132.6 DATAMONITOR
Source: Datamonitor
Table 23: Year 2006 2007 2008 2009 2010
United Kingdom exchange rate, 2006–10 Exchange rate ($/£) 0.5435 0.4999 0.5449 0.6416 0.6475 Exchange rate (€/£) 0.6820 0.6840 0.7973 0.8921 0.8589 DATAMONITOR
Source: Datamonitor
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APPENDIX
APPENDIX
Methodology
Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-checked and presented in a consistent and accessible style. Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, Datamonitor’s in-house databases provide the foundation for all related industry profiles Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the market and our clients Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends Datamonitor aggregates and analyzes a number of secondary information sources, including: National/Governmental statistics International data (official international sources) National and International trade associations Broker and analyst reports Company Annual Reports Business information libraries and databases
Modeling & forecasting tools – Datamonitor has developed powerful tools that allow quantitative and qualitative data to be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can then be refined according to specific competitive, regulatory and demand-related factors Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date
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APPENDIX
Industry associations
Society of Motor Manufacturers and Traders Ltd. (SMMT) Forbes House, Halkin Street, London SW1X 7DS Tel.: 0044 20 7235 7000 Fax: 0044 20 7235 7112 www.smmt.co.uk International Organization of Motor Vehicle Manufacturers (OICA) 4 rue de Berri, 8éme arrondissement, Paris, France Tel.: 0033 1 4359 0013 Fax: 0033 1 4563 8441 www.oica.net European Automobile Manufacturers' Assocation (Association des Constructeurs Européens
d'Automobiles, ACEA) Avenue des Nerviens 85, B-1040, Brussels, Belgium Tel.: 0032 2 732 55 50 Fax: 0032 2 738 73 10 www.acea.be
Related Datamonitor research
Industry Profile Global car manufacturers Car manufacturers in Asia-Pacific Car manufacturers in Europe Car manufacturers in France Car manufacturers in Germany
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APPENDIX
Disclaimer
All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior permission of the publisher, Datamonitor plc. The facts of this report are believed to be correct at the time of publication but cannot be guaranteed. Please note that the findings, conclusions and recommendations that Datamonitor delivers will be based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not always in a position to guarantee. As such Datamonitor can accept no liability whatever for actions taken based on any information that may subsequently prove to be incorrect.
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ABOUT DATAMONITOR
ABOUT DATAMONITOR
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