With online sales representing a core element in the recovery of car sales and customer conversion during the Covid-19 pandemic, contactless interaction between consumer and dealer has become a key topic of discussion. A Capgemini survey revealed differences in consumer preferences between the U.S., the UK, and Germany. While approximately ************** of U.S. respondents consider a contactless test-drive vehicle delivery service vital, the response from UK and German respondents was less conclusive. A total of ** percent of UK respondents and ** percent of German respondents believe this service would be important for them when it comes to purchasing a vehicle online.

In 2024, around **** million motor vehicles were sold in the United Kingdom, down from its peak at around *** million units in 2016. Sales recovery does not match 2019 levels In 2024, the UK was the second-largest car market in Europe. New passenger car registrations had grown in the country in 2023, up to the highest volume recorded since their dramatic drop in 2020. However, amid Brexit, the automotive semiconductor shortage, raw material price inflation, and an overall cost of living crisis, the UK's automotive industry has faced various challenges and has yet to reach its pre-COVID-19 pandemic level. The impact of inflation on car purchases The United Kingdom recorded its highest inflation rate since the 1990s in 2022, a situation that marginally improved in 2023. And, in 2024, the average inflation rate dropped to **** percent. New cars were particularly impacted by the inflation, with their consumer price index being at its highest in the past 15 years in 2023. Despite the inflating prices, car purchasing intentions remained relatively stable based on surveys ending in September 2023 and September 2024, with around **** of UK residents reporting their intention of buying a car in the 12 months following the survey. This is, however, a positive development compared to purchase intentions reported in that same survey ending in September 2022.

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The automotive EPS market share in UK is expected to increase by 1.33 million units from 2021 to 2026, at a CAGR of 7.59%.

This automotive EPS market in UK research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers the automotive EPS market in UK segmentation by type (column, pinion, and double pinion) and vehicle type (passenger cars and commercial vehicles). The automotive EPS market in UK report also offers information on several market vendors, including ATS Automation Tooling Systems Inc., BorgWarner Inc., Hitachi Ltd., Hyundai Motor Group, Infineon Technologies AG, JTEKT Corp., Mando Corp., Melrose Industries Plc, Mitsubishi Electric Corp., and NEXTEER AUTOMOTIVE GROUP LTD. among others.

What will the Automotive EPS Market Size in UK be During the Forecast Period?

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Automotive EPS Market in UK: Key Drivers, Trends, and Challenges

The need to share the increase in production cost between OEMs and end-users is notably driving the automotive EPS market growth in UK, although factors such as fluctuating costs of raw materials may impede market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the automotive EPS industry in UK. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Automotive EPS Market Driver in UK

One of the key factors driving the automotive EPS market growth in UK is the need to share the increase in production cost between OEMs and end-users. Several vehicle components are being replaced by lightweight materials, such as aluminum, to improve fuel efficiency and achieve superior performance. However, the governments of several countries have imposed sanctions on the suppliers of raw aluminum. For instance, on May 8, 2019, US President Trump issued Executive Order 13871 that imposed sanctions on transactions involving minerals and industrial commodities exported from Iran. These sanctions led to a steep hike in aluminum prices and created a supply-demand imbalance in the market. Owing to the rapid rise in the demand for advances in automotive EPS systems, the rise in the cost of raw materials such as aluminum and steel has a negligible impact on the market. Sharing the burden of the increased cost between OEMs and end-users is expected to positively impact the market growth during the forecast period.

Key Automotive EPS Market Trend in UK

Another key factor driving the automotive EPS market growth in UK is the adoption of steer-by-wire technology to eliminate mechanical linkages between the steering and wheels of vehicles for enhancing driving comfort and improving fuel efficiency. Additionally, the steer-by-wire technology also provides improved performance, reliability, and safety, along with reduced manufacturing and operating costs and better fuel economy. This technology also eliminates the use of many mechanical components, such as the column, steering shaft, and gear reduction mechanism. Therefore, steer-by-wire technology will be beneficial for automotive OEMs that are constantly facing pressure to comply with the regulatory emission norms. Such factors are expected to positively impact the automotive EPS market in UK during the forecast period.

Key Automotive EPS Market Challenge in UK

One of the key challenges to the automotive EPS market growth in UK is the fluctuating costs of raw materials. Fluctuations in the cost of raw materials such as steel, aluminum, and hardened deep-drawn steel are directly correlated to the price of EPS. The cost of these raw materials keeps fluctuating based on various macroeconomic factors, such as inflation, labor costs, and changes in regulatory policies. The cost of iron ore, for instance, has been increasing since the beginning of 2019; a cumulative increase of about 90% in iron ore prices was registered from January 2019 until the end of July 2019. Thus, raw material suppliers have been compelled to pass on the increase in costs to downstream industries. Such decisions by raw material suppliers have an adverse impact on the growth of various manufacturers, including EPS manufacturers, which is expected to limit the growth of the automotive EPS market in UK during the forecast period.

This automotive EPS market in UK analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the automotive EPS mar

Tariffs make up the greatest share of automotive diesel prices in the United Kingdom. As of May 2020, tariffs make ** percent of the total diesel price, at **** euros per liter. In the first half of 2020, average diesel prices in the United Kingdom had fallen significantly as the coronavirus pandemic put restrictions on travel.

Automotive fuel retailers' revenue is forecast to sink at a compound annual rate of 5.3% to €316.6 billion over the five years through 2024. Retailers have endured a challenging and volatile period, including the shocks to oil prices amid the COVID-19 outbreak and Russia-Ukraine conflict, as well as having to contend with intense competition from supermarkets and growing environmental concerns. Rising numbers of individuals are seeking ultra-low emission vehicles like electric vehicles or are cutting their car usage overall and opting for public transport alternatives. Legislative changes like adopting low-emission zones in European city centres and prospective bans on the sale of new petrol and diesel cars are also driving electric vehicle adoption. Petrol stations are restructuring in the face of soaring competition, boosting investment in new technology and cleaner fuel options. The COVID-19 outbreak led to widespread bans on non-essential travel across Europe, with fuel demand plummeting in 2020. The easing of restrictions supported a strong recovery in fuel sales in 2021. Following its invasion of Ukraine in February 2022, Russia has faced severe sanctions on its oil exports, with supply concerns pushing up the price of oil to sky-high levels, which has trickled down to the price at the pump. Fuel retailers' revenue has significantly benefitted from fuel price inflation, although the extortionate purchase prices threaten profitability. While remaining high, fuel prices are likely to edge downwards in 2024, leading to an expected 3.8% dip in revenue. Petrol and diesel-fuelled cars will lose out to ultra-low emission vehicles over the next decade, with a series of legislation across European countries aimed at disincentivising or banning the sale of new petrol and diesel cars in the coming years. Fuel retailers that can adapt to the changing landscape by investing in electric vehicle charging infrastructure or integrating convenience stores into their stations will fare well. Over the five years through 2029, fuel retailers’ revenue is forecast to grow at a compound annual rate of 2.2% to reach €353.9 billion.

In France, used cars have been consistently more popular than new cars over the past decades, reaching a record *********** sales in 2021, before dropping to *** million in 2023. In contrast, new automobile sales have faced consistent fluctuation over the years as well as a slower recovery from the COVID-19 pandemic, as their 2023 sales remained below the 2019 sales volume. The state of the French used car market Private passenger cars were by far the best-selling type of used vehicles in France as of January 1st, 2023, recording over ***** times the used van and truck sales volume that year. Most used cars sold in France had a diesel internal combustion engine (ICE), and ICE vehicles remained overall the most popular, partly due to the emerging nature of the used electric vehicle market. However, cars fitting stricter European emission standards have been entering the market. Used cars on the French market tended to be older, as around **** million used vehicles over 15 years old were sold in 2023, followed by vehicles between two and five years old. The overall average used car age in metropolitan France has been steadily increasing since 2019. Global used vehicle price inflation While the age of used vehicles in France remained high, the yearly Consumer Price Index (CPI) also increased, up to ****** in 2023. Monthly prices were more volatile, reaching a Consumer Price Index of ****** in November 2024. This increase in used vehicle prices is tightly linked with the overall inflation recorded across the world. Used car prices in other markets have also been growing during 2022. In the United States, the used car and truck CPI spiked by *** percent in May 2022 and the U.S. used vehicle average selling price was the highest on record since 2016 in 2022. The United Kingdom faced similar challenges, with its annual second hand car CPI jumping to ***** in 2022, the second-highest it had been since 2008.

The UK reported a negative automotive trade balance in all the years recorded. In 2023, the country imported some 68.1 billion Great British pounds in automotive goods, compared to 47.1 billion Great British pounds in exports.
Economic contribution The UK’s overall trade balance of goods was a negative 270.6 billion U.S. dollars in 2023. That same year, the motor industry contributed about 22 billion British pounds to the UK’s economy. This was an increase compared with 2021 when the motor industry was responsible for adding 14.1 billion British pounds to the country’s gross domestic product. Production figures In 2022, the UK produced roughly 775,000 million cars, a notable drop from nearly 859,600 million cars produced in 2021. Although the UK car production was declining for the past three years, the significant decrease in production that occurred in 2020 was mainly due to the COVID-19 pandemic.

The Opinions and Lifestyle Survey (OPN) is an omnibus survey that collects data from respondents in Great Britain. Information is gathered on a range of subjects, commissioned both internally by the Office for National Statistics (ONS) and by external clients (other government departments, charities, non-profit organisations and academia).

One individual respondent, aged 16 or over, is selected from each sampled private household to answer questions. Data are gathered on the respondent, their family, address, household, income and education, plus responses and opinions on a variety of subjects within commissioned modules. Each regular OPN survey consists of two elements. Core questions, covering demographic information, are asked together with non-core questions that vary depending on the module(s) fielded.

The OPN collects timely data for research and policy analysis evaluation on the social impacts of recent topics of national importance, such as the coronavirus (COVID-19) pandemic and the cost of living. The OPN has expanded to include questions on other topics of national importance, such as health and the cost of living.

For more information about the survey and its methodology, see the gov.uk OPN Quality and Methodology Information (QMI) webpage.

Changes over time

Up to March 2018, the OPN was conducted as a face-to-face survey. From April 2018 to November 2019, the OPN changed to a mixed-mode design (online first with telephone interviewing where necessary). Mixed-mode collection allows respondents to complete the survey more flexibly and provides a more cost-effective service for module customers.

In March 2020, the OPN was adapted to become a weekly survey used to collect data on the social impacts of the coronavirus (COVID-19) pandemic on the lives of people of Great Britain. These data are held under Secure Access conditions in SN 8635, ONS Opinions and Lifestyle Survey, 2019-2023: Secure Access. (See below for information on other Secure Access OPN modules.)

From August 2021, as coronavirus (COVID-19) restrictions were lifted across Great Britain, the OPN moved to fortnightly data collection, sampling around 5,000 households in each survey wave to ensure the survey remained sustainable.

Secure Access OPN modules

Besides SN 8635 (which includes the COVID-19 Module), other Secure Access OPN data includes sensitive modules run at various points from 1997-2019, including Census religion (SN 8078), cervical cancer screening (SN 8080), contact after separation (SN 8089), contraception (SN 8095), disability (SNs 8680 and 8096), general lifestyle (SN 8092), illness and activity (SN 8094), and non-resident parental contact (SN 8093). See the individual studies for further details and information on how to apply to use them.

Latest edition information

For the third edition (February 2023), data for the electric vehicles module fielded in February 2016 were added to the study and the documentation was updated accordingly.

Over the past two decades the price of diesel fuel in Germany has fluctuated dramatically. Between 2000 and 2012, prices increased from **** euros per liter to a peak of **** euros. Prices began to decrease in the following years, dropping to **** euros per liter as of 2016, close to the low seen in 2009. However, by 2019 the price per liter of diesel had again increased, at **** euros per liter. Diesel prices decreased in 2020 due to the coronavirus pandemic, and increased to **** euros per liter in 2021. As of June 2020, the average cost of diesel in Germany was lower than in France, Italy, and the United Kingdom.Global oil price increaseThe rise in diesel prices in recent years can be explained by the increase in crude oil prices. The cost of crude oil is the main component of diesel fuel prices and varies depending on supply and demand. From 2016 onwards, West Texas Intermediate (WTI) and Brent crude oil spot prices grew annually and stood at ***** and ***** U.S. dollars per barrel respectively in 2018. Diesel cars losing popularityDiesel was once the main choice of fuel in Europe for car buyers, but this has been changing in recent years. Between 2014 and 2018, the share of new passenger cars with diesel engines fell noticeably across Europe. In Germany, shares dropped by approximately ** percent during this period to ** percent. This decline in popularity also had an impact on prices.