Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
www.kgpauto.com Briefing 6
Engine and Aftermarket Forecast Service for Non-Road Mobile Machinery and Commercial Vehicle Markets
Briefing Paper # 6-
Brexit: The Issue of Regulatory Alignment
Paris Kiernan, Analyst
One of the most pressing issues of Brexit for Taking a closer look into the exports of CVs, See our website
both the NRMM and CV market in the UK is roughly 70% of medium-duty trucks and only
the ability to sell vehicles and machinery into 20% of heavy-duty trucks are exported to the for information on:
the EU market. One of the problems that could EU.
occur post Brexit is the issue of regulatory Regular Services
alignment. Currently when an engine is manu- Therefore, the UK CV market is highly depend-
ent on imports and the resulting impacts of CV Engine and
factured in the UK, the majority are certified by Aftertreatment
the Vehicle Certification Agency (VCA). How- Brexit could increase the costs of CVs for UK
operators with the pound depreciating making Forecast
ever, post-Brexit will the EU still accept the
VCA as a body to certify products to meet EU imports relatively more expensive as well as
regulations? This could become an issue if a the inclusion of any tariffs that are implemented
hard deal is established along with many other and boarder delays post-Brexit. Non-Road Engine and
negative impacts associated such as boarder Aftertreatment
delays and import/export tariffs which would Non-Road Mobile Machinery Forecast
could encourage OEMs to shift UK production
to within the EU. Market
The UK is the leading producer of construction New Services
Commercial Vehicles Market equipment (CE) in Europe producing over
25,000 units a year. Interestingly, for the CE Non-Road Mobile
The UK produced just under 20,000 commer- Machinery Driveline
market, over the last few years the UK has ex-
cial vehicles (CV) in 2016 which includes
perienced increasing relative share of exports
around 10,000 units for heavy-duty trucks and Non-Road Mobile
to the EU from 27% in 2013 to 41% in 2016.
the remainder made up of medium-duty trucks Machinery
This has risen to 44% in the first half of 2017
and bus (>6t). Sales of heavy-duty trucks Electrification
equalling roughly £2.8Bn.
amounted to 36,000 units in comparison to
only 9,000 for medium-duty trucks. Hence, the Figure 3 2017H1 UK CE £m Exports and Imports
majority of heavy-duty truck sales are made up (Sources: HRMC, CEA)
of imports with very little exported. These ex-
ported trucks are predominately right hand 3000
driven which are exported to countries in Afri-
ca. 2500
2000
Figure 1 2016 Heavy-duty Truck Unit Sales
(Sources: LMC, SMMT) 1500
1000
500
0
Exports Imports
EU USA ROW
0
Overall, Brexit will negatively impact all mar-
Medium Duty Truck Heavy Duty Truck Bus kets due to the current free and ease of trade
EU Others being reduced once the UK has left the EU.
Meet us!
KGP will be attending various industry events in Autumn/Winter 2017. Contact us to arrange a
free consultation on Single Client, Multi-Client and Special Reports at any of the following:
• aabc - 29th January to 1st February - Mainz, Germany See our website
• IVT - 13th to 14th February - Cologne, Germany for information on:
• FPC - 28th February to 3rd Mach - West Midlands, UK Regular Services
• Intermat - 23rd to 28th April - Paris, France CV Engine and
Aftertreatment
• Integer - 26th to 28th June - Brussels, Belgium
Forecast
We can also prepare a client specific webinar to introduce our services and provide an industry
overview.
Non-Road Engine and
Briefings Aftertreatment
Forecast
KGP’s free briefings are published twice per month covering Commercial Vehicle and Non-Road
Mobile Machinery topics. Forthcoming briefings will include:
New Services
7 8 9 10
Non-Road Mobile
Briefing CV Update Batteries NRMM Update M&A and JV Machinery Driveline
References
• Knibb Gormezano and Partners Q3 2017 CV Engine Market Summary
Report:- Click Here
• Knibb Gormezano and Partners Q3 2017 Non-Road Engine Market
Summary Report:- Click Here
• LMC Global Commercial Vehicle Forecast Click Here
Contacts
Alex Woodrow Managing Director
alexwoodrow@kgpauto.com
James Dorling Senior Analyst
jamesdorling@kgpauto.com
Paris Kiernan Analyst
pariskiernan@kgpauto.com
Mick Beeson Sales Manager
mickbeeson@kgpauto.com
Knibb, Gormezano and Partners
Disclaimer
Information contained in this document has been obtained by Knibb, Gormezano & Partners
from industry sources believed to be reliable. However, because of the possibility of human or
mechanical error by our sources, Knibb Gormezano does not guarantee the accuracy, adequa-
cy, or completeness of any information and is not responsible for any errors or omissions or for
the results obtained from the use of such information.
Copyright Knibb, Gormezano and Partners 2018