British cars among worlds best kept with £211 billion spent on service

British cars are among the best maintained in the world, with UK motorists spending a collective £21.1 billion a year on servicing and repair. That’s according to a new report – the first official industry analysis of the UK automotive aftermarket – published today by the Society of Motor Manufacturers and Traders (SMMT).The report, The Importance of the Aftermarket to the UK Economy, commissioned by SMMT from independent research consultancy Frost & Sullivan, reveals that UK consumers spend an average £695.39 on car maintenance every year – some 12% higher than the average global spend per car of £621.62.2 The report also states that compared with other markets there are fewer cars in disrepair, generating excess pollution or needing new brakes on British roads.With more than 42,500 vehicle service and repair locations of all types, the UK aftermarket is a huge, diverse and highly competitive industry. With a strong franchised dealer network and the largest share of work carried out by independently owned businesses in Europe at 64%, it offers consumers a wide choice of where and how they have their cars serviced – and how much they spend. Parts and labour costs at independent outlets can be up to 65% and 45% lower respectively.The report also reveals the significant economic contribution made by the UK automotive aftermarket, which delivers an annual £12.2 billion direct to the UK economy and supports more than 345,000 British jobs. As the number and age of vehicles on UK roads increases, thanks to a healthy new car market, ever-improving quality and ever-more advanced servicing techniques, by 2022 the UK aftermarket is projected to be worth some £28 billion with an employee base of around 400,000.The report’s findings come as the first ever Automechanika aftermarket trade show in the UK opens today at Birmingham’s NEC. The exhibition brand already has a presence in 14 markets and the growing UK sector is the latest to be identified as a key investment destination.Mike Hawes, SMMT Chief Executive, said, “The UK’s aftermarket is one of the most competitive in the world and plays a critical role in keeping Britain’s 30 million-plus cars3 roadworthy. Robust competition and a strong independent sector have helped reduce the cost of vehicle ownership in the UK and provided greater choice to consumers. For this growth to be sustained, however, the sector must stay abreast of evolving vehicle technologies and changing mobility patterns.”The UK aftermarket is already the fourth largest in Europe by car parc size, with more than 30 million vehicles in use requiring regular servicing and maintenance work, and it is set to overtake France to take third place by 2022. By the same measure, it is also the eighth largest sector of its kind in the world; bigger than those in Brazil, Korea, Canada, and even India.The way people buy and use cars is also changing rapidly which, according to the report, presents the aftermarket with both opportunities and challenges. The shift from outright vehicle purchase to leasing and a longer-term trend from car ownership to ‘usership’ will require new business models, while the new era of vehicle connectivity will also present opportunities for businesses prepared to embrace technological change.The digitisation of retailing is also having an impact on the way consumers’ needs are served, with motorists increasingly using the internet to compare prices and products and schedule maintenance work. The UK aftermarket is well placed to respond, with the highest penetration of online retail for automotive parts and services at 7%, ahead of Germany and France at 5% and 4% respectively.The report calls for a greater emphasis on investment in skills and equipment to ensure the aftermarket responds to increasingly complex vehicle technologies, as well as maintenance of competition regulation to ensure consumers continue to benefit from choice, convenience and competitive prices.Opening today and running until 9 June, the first ever Automechanika Birmingham will see thousands of investors and buyers visit more than 550 aftermarket and supply chain companies at the NEC. Of the 15 Automechanika trade shows that now exist worldwide, Birmingham’s event is set to be the second biggest debut behind only that of Frankfurt’s flagship show.CLICK HERE TO DOWNLOAD THE FULL REPORT1 SMMT: The Importance of the UK Aftermarket to the UK Economy, Frost & Sullivan, June 2016 combines in-house data from Frost & Sullivan and secondary sources with primary research. Interviews were held with a variety of participants in the UK during March, April and May 2016 to validate findings and confirm key figures.2 The average annual spend per car is approximately £695.39 in the UK. While the average spend on a personal car is often lower than this, fleet and leasing companies tend to spend more and may be more likely to follow the manufacturer’s recommended maintenance schedules. Global spend based on an estimated 1.11 billion vehicles in operation globally and a global aftermarket retail value of £690 billion.3 The Importance of the UK Aftermarket to the UK Economy report uses DfT Vehicle Licensing Statistics: Quarter 4 2015 for Great Britain.Click to share on Facebook (Opens in new window)Click to share on Twitter (Opens in new window) read more

Dozens of cyber attacks target heart of government every month GCHQ chief

first_imgBritain’s national security is threatened by dozens of cyber attacks every month, a security chief has said, as he warned that hackers are attempting to steal secrets from the heart of government.The remarks from Ciaran Martin, a GCHQ boss, came as Chancellor Philip Hammond said hacks could bring down national infrastructure and that even kettles, fridges and driverless cars were also at risk.Mr Martin, chief executive of GCHQ’s National Cyber Security Centre (NCSC), said Britain had been hit by 188 high-level attacks, “many of which threatened national security” in the last three months. Want the best of The Telegraph direct to your email and WhatsApp? Sign up to our free twice-daily  Front Page newsletter and new  audio briefings. He told The Sunday Times: “In the case of government departments, (it is) getting into the system to extract information on UK government policy on anything from energy to diplomacy to information on a particular sector.”Attempts by Russian and Chinese state-sponsored hackers on defence and foreign policy secrets are among the attacks being investigated by the NCSC, the newspaper said.Mr Martin added: “Over the last two years there has been a step change in Russian aggression in cyber space.”Part of that step change has been a series of attacks on political institutions, political parties, parliamentary organisations and that’s all very well evidenced by our international partners and widely accepted.”Among these, according to US intelligence services, is an attempt by the Kremlin to interfere with the presidential election during a breach of Democratic National Committee computers. There has been a step change in Russian aggression in cyber spaceCiaran Martin, GCHQcenter_img Show more Mr Hammond, a former defence and foreign secretary, said the NCSC had blocked 34,550 “potential attacks” on government departments and members of the public in the last six months – a rate of around 200 hacks a day.Writing in The Telegraph, he warned that the “internet revolution” brought the threat of being held to ransom by hackers, the theft of intellectual property and the “shutting down of critical national infrastructure”.”Beyond hacked kettles and fridges, ‘internet of things’ devices, such as driverless cars, can present alarmingly real security threats that could be incredibly dangerous if the right security isn’t in place,” he added.Their comments come ahead of the Queen’s official opening of the NCSC in London on Tuesday.last_img read more