An attractive market that hosts a myriad of choices in investment, the automotive franchise exists almost everywhere you look without you even looking for it. In the UK alone, the automotive market in the previous year had reached over 77.5 billion euros. Since the appeal of this market has barely budged over the past decades, you might be wanting to take your chance at making a sound investment in the relatively consistent market. However, recent developments in both international and local laws together with the positive yet unpredictable technological advancements might make you want to think twice before pushing through with any deal.
A diverse industry
Anything that a car is made up of is an industry of its own. From tyre parts to air fresheners to car manufacturers eventually leading to car wash services, the industry has provided a lot of different jobs to different experts and employees. Taking a note from the UK, their automotive market involves not just the production of commercial automobiles but a wide variety of car types as well. From premium sports cars to coaches, their diversity in manufacturing enables them to have a spread-out market each with their own niche demographics. There’s room to grow as a budding investor in a diverse market ranging from large companies to small ones. If you’re planning to start in the automotive industry, startyournewfranchise.com offers a selection of options ranging from cleaning businesses to retail in automobile parts sales.
The recent verdict
Business has of course been booming, especially in countries like the UK that boasts a strong involvement in the automotive industry. In 2016, the UK’s automotive industry boasted a 12% cut of the UK’s overall exported goods, which is about 35 million euros. The UK’s global rank is 13th in the market while ranking 4th in Europe; an impressive fact to say the least. But that’s the case with an automotive industry juggernaut like the UK. Other countries like the United States and Germany might not have the same weight and involvement as with the UK’s statistics. It has for some time been a consistent industry but growing awareness of environmental realities have shown that this might not stay as true in the next decades.
Will it flop, or will it stay?
Stricter vehicle regulations and environmental laws put together with tighter tariff rates are what’s holding the industry to a dilemma of “will it flop?” or “will it stay?”. Growing concern for the environment is alarming, to say the least, but it definitely is a necessity with the changing times. That is why things are looking up for automobile brands that are developing hybrid vehicles capable of running not just on fossil fuels. Though the price of diesel may shoot up in the next decade, the appeal of having your own car won’t seem to die down with the technological advancements that keep it a profitable investment, at least in the UK market.
Image from: Pixabay.com
Data sources:
https://www.smmt.co.uk/industry-topics/uk-automotive/
https://www.smmt.co.uk/wp-content/uploads/sites/2/SMMT-Motor-Industry-Facts-2018-online.pdf
