The United Kingdom Automotive Parts Aluminum Die Casting Market is projected to grow with a CAGR of more than 5 % during the forecast period.
- Owing to the high demand of automobiles in the region, United Kingdom is one of the largest markets for automobiles in the world. the presence of leading automobile manufacturers as well as the component manufacturers is driving the growth in the region.
- With the growing pollution levels around the world car makers are looking for light weight components for reducing the fuel consumption and curbing the emission of harmful pollutants into the atmosphere.
- However, the low availability of aluminum in the country and the high imports of the metal because of the growing demand of aluminum and related products can be a restraint.
- Because of the ongoing Covid-19 pandemic all around the world, the aluminum die casting industry is badly hurt because of the spread of virus. The lockdown imposed has forced all the players in the industry to shut down their operations and also has weakened the demand for automobiles in the country. The April-June quarter witnesses high negative rates in sales figures for the automobiles and the industry is expected to revive in second half of 2021.
Key Market Trends
Passenger Vehicle Sales Driving Growth
Despite of a decline in demand for a couple of years in the region, owing to the factors such as the socio-political situation in the country, the Brexit deal and uncertainty over future environmental regulation, the United Kingdom passenger vehicle market still remains second largest market in the European Union, standing behind Germany. The market is well diverse with around 350 different models available for end users with different fuel types.
The demand for petrol cars in the UK in 2019 increased slightly up +2.2 but the diesel segment witnessed a huge -21.8% decline in registrations, as continued anti-diesel rhetoric and confusion over clean air zones hit demand. In London, a new ultra-low emission zone, which imposes a GBP 12.50 daily charge on older diesels in central London, took effect in April. The area of the zone will be expanded in October 2021. these initiatives are forcing the OEMs to opt for lightweight materials for the vehicle which can reduce the emission of harmful gases.
While the conventional fuel segment for passenger cars is hovering around uncertainty the hybrid and electric vehicle market is booming with a high growth rate. Demand for the latest battery electric cars more than tripled to 4,652 in November, up from 1,415 a year ago. Sales of plug-in hybrids rose by 34.8% to 4,362 cars, while hybrids were up 15% to 6,118 vehicles. On an average more than one in 10 cars joining UK roads are now either hybrid, plug-in hybrid or pure electric.
Pressure Die Casting Captures the Market
Owing to the advantages offered by the process of pressure die casting over other casting methods the players in the industry are investing to expand their operations in the country for fulfilling the demand of aluminum parts for automotive in the country.
Using the pressure die casting technique, high volumes of parts can be produced with high accuracy over other process also the process is cost effective and less time consuming and other advantages and the demand in the country is enabling the major players in the country to invest heavily and expand their operations. For instance,
In February 2020, Midland Pressure Diecasting (MPD) completed a GBP 250,000 investment drive by boosting its aluminum and zinc casting output via the purchase of automated machines and an additional new ‘Frech’ die casting machine.
The United Kingdom Automotive Parts Aluminum Die Casting Market is fragmented, with many players accounting for a small market share. Some of the prominent companies in United Kingdom Automotive Parts Aluminum Die Casting Market are Amtek Group, Buvo Castings, Castwel Autoparts, Endurance Group and others. The major players in the country are entering into strategic partnership with global leaders to gain considerable market share.
In June 2019, Alucast, which is one of the UK’s largest independent aluminium foundries, secured more than GBP 3 million of new contracts from car makers looking to explore ways of reducing weight on future models.
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