BRITISH MOTOR-CARS

Dominion, Volume 23, Issue 81, 30 December 1929, Page 12

BRITISH MOTOR-CARS

THE EXPORT TRADE FIELDS FOR EXPANSION In a recent publication of the Society of Motor Manufacturers and Traders there appears an analysis of the potential market for cars in the United Kingdom. The conclusion reached, after a comparison of a potential car ownership of perhaps 1,200,000 with an actual registration of over 1000,000, is that the expansive power of the home market will shortly be exhausted unless more persons can be enabled to keep private cars by a reduction of maintenance costs or unless the average lite of cars continues to fall. It is computed that cars scrapped in 1928 were, on the averaage nine years old; this compares with an average life of seven years in the United possibilities for the expansion of the motor industry may lie in enlarging the potential car market at home, It is clear that the industry must look far more than in the past to export if it Is to continue to develop at its present rate, remarks the "Economist” in a review of the position. Considerable interest has been roused by the announcement that the Prudential Assurance Co. is backing, to the extent of £1,000,060. through the agency of Messrs Rootes, Limited, the well-known dealers, the export of cars by the Humber-Hillman-Commer Combine. Measures such as these indicate that the motor industry is becoming alive to the importance of overseas business. The recent history of the world export trade in motor vehicles is not encouraging (says the “Economist”), for it shows a gradual elimination of European manufacturers in favour of the United States. In spite of the enormous increase in the dimensions of this trade, Europe has barely held her own in numbers. The percentage allocation of the export trade has been as follows: — Percentage Allocation of World Motor

Britain’s share of the export trade reached its peak in 1926 and 1927, but fell away sharply last year and has remained at the same level this year. The total number of vehicles exported has actually advanced this year, being 20,913 up to June, compared with 32.777 for all last year, but this is due to an expansion in the total market, not to an improvement in the share of it falling to British manufacturers. Compared with last year, the only country to improve its percentage has been Canada, whose share increased from 11.3 per cent, last year to 13.3 per cent, up to June this year. Canada’s proportion, however, is liable to be substantially affected at any moment by the policy of large American manufacturers having factories in both countries. The World Market. It is important to analyse the actual and potential world market for motor cars. The number of motor vehicles in use in the world has now reached the enormous total of 31,764,536; it continues to increase at the rate of over 2,006,000 a year, and there is as yet no sign of saturation point being reached. The actual rate of increase has of late been greater for commercial vehicles, which increased since last year by 9 per cent, to a world total of 4,986,688, than for private cars, which only increased by 6.6 per cent, to a world total of 26,777,848. The fundamental cause of the present enormously rapid "expansion in the use ot motor vehicles is the position of the American industry, which cannot find a domestic market for its whole production, as the increase in the number of registrations has fallen off to such an extent in the past year or two. to a S , 8 Sa g S . g " "v ° 2.2 a & S H C, £ M s, K a H a..s 1926 .. 19,843,936 12.8 1,703,576 312,378 1927- .. 22,137,334 11.6 1,693,919 313,617 1928 .. 23,253,882 5.0 1,891,659 393,119 1929 .. 24,493,124 5.3 2,603,762 515,744 Exports this year seem 'likely to approach 700,000, and it is interesting to note that the ten leading markets for American cars in the first six months of this year were Canada, Argentina, Australia, Brazil, British South Africa, Belgium, Sweden, the United Kingdom, Denmark, and Germany— In that order. Outside America the rate ot increase in motor vehicles has varied enormously according to how closely saturation point has been reached. ■ In New Zealand, which Is the country outside America with the highest proportion of cars, there is apparently little room for expansion, registrations only increasing from 147,000 to 153,000 in the year. Australia also shows a low rate of increase, while India and British Malaya were rather better, and South Africa better still. In Europe, Belgium, and Denmark, both countlres with a high proportion of motor vehicles in relation to their wealth, appear to have reached saturation point. Germany, on the other hand, showed an enormous growtli in motor vehicles of 42 per cent., from 384,709 to 546,300, while large increases were recorded in Spain, Italy, Sweden, Norway, and Holland. These figures may well be compared with those of the ratio of population to the number of motors: — Number of Persons to Every Motor Vehicle.

Britain's Opportunity. "The conclusions to whieh these figures drive us are that a vast potential market for the British motor industry exists, both in the Empire and at our doors in Europe, and that In the past British manufacturers have neglected their opportunities to share in these markets. The problem of export is not one to be tackled haphazardly or as a sideline to selling organisation at home. It requires large-scale and specialised organisation, both for selling and for subsequent service, and it is In this connection particularly that the million pound venture noted above should prove of lasting worth. “It is clear from the above that our most valuable markets are the Irish Free State and the rest of the British Empire, by fur the largest purchaser in the latter being Australia. It would seem, however, that the attention paid to the market on the Continent of Europe is far too small. This market is at our doors, but is, nevertheless, badly neglected; against our exports of 3097 vehicles to the Continent, American exports last year amounted to well over 100,090, including over 25,000 each to Sweden and Belgium, over 15,000 to Germany, and 14,000 to Spain. Nevertheless British vehicles should be eminently suitable for the European market. So far as private ears are concerned, most European countries have some form of horse-power tax; the formula may be slightly different from the R.A.C. formula, but these taxes, nevertheless, certainly tend to favour small cars against large American ears, as does the Condition of the principal motoring roads on the Continent, which is rapidly improving. British commercial vehicles are also world famous for quality and reliability, and should prove very well fitted for Continental conditions, but sales in this, our most obvious market, are still very weak, although there are signs of Improvement here and there, notably in Holland and Spain. Distribution, in order to be profitable, should be on a much larger scale than that on which It is now undertaken.” ONION EXPORT TRADE Further protection of £2 a ton has been granted to Australia onion-growers, evidently with the Intention of precluding imports of Japanese onions. When the duty was £6 a ton fair quantities of onions from Japan were landed in Sydney last season, and realised from £l7 to £lB a ton. The additional £2 a ton now imposed will make it almost Impossible for merchants to Import onions from Japan, as prices in Australia rarely exceed £2O a ton, even in a season of acute shortage.' Australia also imports small quantities of onions from New Zealand, but this is only possible when market conditions are favourable, that is when a shortage in Australia has caused prices to advance to a high level simultaneously with a good crop and normal prices in New Zealaml. The additional duty will not apply to New Zealand onions, owing to the operation of the reciprocal tariff agreement by which six months' notice has to be given . before an increased duty is Imposed.

Exports. 1923. 1929. (.Six 1920. months) Canada ... 24.5 14.3 13.3 U.S.A ... 53.0 58.5 71.7 Belgium ... 2.9 2.4 0.4 France ....... ... 10.8 11.5 0.0 Germany ... 2.0 0.4 0.9 Italy ... 4.5 6.0 3.1 Netherlands ... ... 0.1 0.1 — United Kingdom 100.0 6.2 100.0 4.0 100.0

U.S.A 1926. 5.4 1927. 5.1 1928. 4.9 New Zealand ... ... 10.9 9.1 9.1 Canada 11.5 10.1 9.1 ... 16.6 13.8 13.2 United Kingdom .. 41.9 36.5 34.3 France ... 49.4 41.8 37.4 South Africa* .. ... 180.0 157.0 1311.0 Germany ... 212.0 162.4 117.2 Italy ... 304.0 274.7 215.5 * White population only.