UNIT 10 BIG DATA ANALYTICS

ASSIGNMENT C (Distinction)

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tomisinlayode

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PEARSON BTEC LEVEL 3

EXTENDED DIPLOMA IN
INFORMATION
TECHNOLOGY

BIG DATA ANALYTICS ASSIGNMENT C

LEARNING AIM C - CARRY OUT ANALYSIS OF STATISTICAL DATA TO MEET THE NEEDS OF
AN ORGANIZATION

Assessor:

Issue date: 1st May 2024

Hand in deadline: 20th May 2024

Name:

Student No:

Introduction.....................................................................................................3

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P4.....................................................................................................................4
Regression Analysis of Uk Car Industry............................................................7
Ford............................................................................................................7
Normal distribution ford.............................................................................9
Normal distribution VOLKSWAGEN...........................................................10
Audi..........................................................................................................11
Normal distribution for AUDI....................................................................12
BMW.........................................................................................................12
Normal distribution for BMW....................................................................13
Mercedes..................................................................................................14
Normal distribution for Mercedes.............................................................15
Probability distribution...................................................................................15
Trends............................................................................................................16
The decrease and increase in car sales...................................................19
P6...................................................................................................................21
Recommendations/considerations for the analysis.....................................21
Considerations.........................................................................................21
Recommendations...................................................................................22
M4/M5............................................................................................................23
M6/D3............................................................................................................24
Conclusion...................................................................................................24
Factors affecting car sales..........................................................................24
Final Thought..............................................................................................27
Bibliography...................................................................................................28

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Introduction
As an IT development trainee at a car dealership in Southern England, I am
tasked with a critical project. The directors are considering whether to switch
car brands or add new ones. I need to examine the rise in new automobile
registrations for different automakers to help me make this selection. The
data will be prepared by focusing on new car registrations and combining it
over several years. I will be using basic and advanced statistical methods, I
will analyze trends, averages, variations, mean, range etc. and comparisons
between different data sets. This analysis will result in two reports: a detailed
report for the directors, providing in-depth insights, and a summary for
branch sales managers, presenting key findings in a concise format. These
reports will provide accurate and relevant information, even for those with a
mathematical background, and will be presented clearly and appropriately.
My goal is to make the data accessible and useful, also guiding the
dealership's leadership through this critical business decision with
confidence and clarity.

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P4

P5

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Mean

As you can see from the screenshot, I calculated the average for each car
number registered each year from 2021 to 2009 and we can see that out of
all the 6 cars Ford came with the highest number of registered cars
maintaining it as the number 1 top which brings Mercedes to having the
lowest number of registered cars for from 2021 to 2009. The meaning of the
dataset is the average number of registrations per year, with Ford having the
highest average number of registrations. Vauxhall follows as the second
highest, suggesting strong but slightly less consistent sales compared to
Ford. Volkswagen, Audi, BMW, and Mercedes have lower means, indicating
fewer registrations on average, with Mercedes having the lowest.

Mode

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There is no mode for any of the brands as all yearly registration numbers are
unique. For all the 6 cars none of them had a reoccurring number of
registrations for each year. They either went higher or lower over the years.

Standard deviation

The standard deviation shows how much the number of registrations varies
each year from the mean. Ford and Vauxhall have the highest standard
deviations, suggesting significant yearly fluctuations in their registration
numbers. Volkswagen has the lowest standard deviation, showing more
consistent year-to-year registration numbers. Audi and BMW show moderate
variability, while Mercedes has notable variability but less than Ford and
Vauxhall.

Median

The median is the middle value of the ordered dataset, providing a measure
of the central tendency. Ford has the highest median, suggesting that half of
its yearly registrations are above this number, reinforcing its overall high
registration trend. Vauxhall also has a high median, consistent with its mean,
showing robust sales. Mercedes has the lowest median, highlighting
generally lower registration numbers compared to other brands.

Variance

Variance measures the average degree to which each registration number

differs from the mean. Ford's high variance confirms the significant spread in
its registration numbers over the years. Volkswagen's low variance shows
very stable registration numbers. Audi, BMW, and Mercedes show increasing
variability in their registration figures, with Mercedes showing the highest
among these three.

Range

The range is the difference between the highest and lowest registration
numbers. Ford's high range shows a significant difference between its
highest and lowest registration years, emphasizing high variability. Vauxhall

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also shows a wide range, reflecting significant changes in its yearly

registrations. Volkswagen has the smallest range, again showing stability in
its yearly registration numbers. Audi and BMW have similar ranges,
indicating moderate variability, while Mercedes shows a higher range among
the German brands.

Interquartile range

The interquartile range (IQR) is the difference between the third quartile and
the first quartile, representing the spread of the middle 50% of the data.
Ford shows the highest registration numbers and the greatest variability
across the years, making it the most dynamic brand in terms of registrations.

Regression Analysis of Uk Car Industry

The relative sales success of various auto brands will be shown to us in the
related charts, showing any declines in their vehicle sales. Many factors,
which we will cover later in this report about car sales, impact car sales,
impact on these graphs. As you can see from the screenshot above, I have
provided the routine and non-routine statistical and mathematical operations
by finding the mean, median, mode, variance, standard deviation, Range,
and quarters for the top 6 cars for each year and we will evaluate it further.
In the past 12 years there have been dramatic changes in the UK car
industry effecting car manufactures. Historically Ford and Vauxhall have
been two of the UK’s leading cars manufactures but this has changed. In the
following section I will analyse the key statistics to see where these changes
have occurred.

Ford
The Ford graph shows a decline in car sales for Ford, with an R^2 value of
0.9585, indicating high accuracy. However, the data set is influenced by
several factors, making it unreliable. Ford was the UK's leading car
manufacturer in 2099, with 15.8% of the market selling 310,796 vehicles. In
2012, sales were 277,908, a 2% decline, but Ford remained the top seller. In
2015, sales increased to 330,082, but a further decline to 12.7%. In 2019,
sales declined to 232,896, representing 10.1%. By 2021, sales had declined
to 114.537, representing 7% of the market, an 8.8% decline from 2009. Ford

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was the number one car seller up to 2020, but in 2021, it dropped to third.
The data is influenced by several factors, making it difficult to solely rely on
the data.

The normal distribution for ford shows the distribution of values associated
with Ford, such as stock prices or other metrics. The y-axis represents the
probability density function (pdf) values for those corresponding x-axis
values, indicating how often each value occurs within the distribution. The
table lists specific values and their corresponding probabilities, derived from
the normal distribution. The peak of the curve represents the mean or most
likely value in the distribution, with values around 261.385 having the
highest probability (pdf = 0.006111827). The spread of the distribution
indicates the standard deviation, with wider curves indicating larger standard
deviations and narrower curves indicating smaller standard deviations. The
normal distribution of values can be used for stock analysis, risk
management, and financial assessments. Understanding the normal
distribution of values helps in making data-driven decisions, allowing
companies to predict potential losses and prepare for them. For example,
calculating the probability of Ford's value between two specific points can be
done by integrating the area under the curve using the provided pdf values.

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Normal distribution ford

The chart depicts the normal distribution for Ford, a bell-shaped curve that
represents the probability of different outcomes. The X-Axis (Values)
represents different possible outcomes, while the Y-Axis (Probabilities) shows
the likelihood of each outcome. The highest point on the curve is around the
middle values, while the lower ends represent less likely outcomes.
Examples from the chart include a very small chance of 114.537
(0.00044975), a higher chance of 276.153 (0.00600279), and a less likely
chance of 330.082 (0.00363727). This information is useful for investors to
gauge potential risks and returns, and for businesses to plan better by
knowing the most probable outcomes. In summary, the chart helps investors
gauge potential risks and returns, while businesses can make more informed
decisions based on these probabilities. The chart helps investors gauge
potential risks and returns, while businesses can plan better by knowing the
most probable outcomes.

Volkswagen
In this dataset pertaining to Volkswagen, we observe a gradual decrease in
car sales over time. Various factors that could have contributed to this trend
will be explored in greater detail in this report. The R^2 value, which stands
at 0.7398, is close to 1.0, but this suggests that our data may contain some
inaccuracies. Nonetheless, it's important to note that this value is not always
a reliable indicator and cannot accurately predict other factors that may
influence the data. As a result, we can conclude that there is indeed a
consistent downward trend in this dataset. Volkswagen car sales have also
declined, but only marginally in 2009 car sales were 158,336 representing

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8% of the market share, by 2019 this had risen to 198,608 and 8.7% of the
UK car market. In 2021 Volkswagen had declined to 146,333 car sales but
this still represented 8.9% of car sales. The average car sales were 184.824
the 2021 decline of 38.491, but this decline is relative as Volkswagen had
moved to the number one UK car seller this is represented in the graph
above. The regression analysis illustrates that Volkswagen are in long term
decline if not as rapid a decline as Ford and Vauxhall. Volkswagen are now
the UK number one car seller.

Normal distribution VOLKSWAGEN

The normal distribution chart for Volkswagen is a bell-shaped curve that shows the probability of
different outcomes for the company. The chart consists of X-Axis (Values) and Y-Axis (Probabilities), with
the highest point representing the most likely outcomes around the middle values. The lower ends
represent less likely outcomes. Examples from the chart include 146.231 (0.004588909), 179.699

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(0.016191501), and 219.73 (0.005795663). The chart helps investors understand potential risks and
returns, while businesses can plan their strategies better by knowing the most probable outcomes. The
highest points on the curve indicate that values around 171.14 to 198.608 are the most likely outcomes,
while values like 146.231 or 219.73 are less likely due to their lower ends. In essence, the chart provides
a more accurate representation of the probabilities of different outcomes for Volkswagen, allowing for
more informed decisions based on these probabilities.

Audi

The graph and table show percentage data from 2009 to 2021, analyzing
data points from 2009 to 2021. The linear trend line equation is y = 0.012x -
2.823, with a moderate fit to the data points. Despite some fluctuations in
the data, there is an overall increasing trend in the percentage data over the
years. The highest value is in 2021 (7.1%), while the lowest is in 2009
(4.6%). The highest value is in 2021 after a dip to 4.9% in 2019. In the mid-
period (2012-2017) we can see a consistent increase from 6.1% to 6.9%. The
trend shows growth for Audi, but the R-squared value suggests variability
and inconsistencies in year-to-year performance. The significant dip in 2019
(4.9%) and subsequent recovery in 2020 (6.6%) and 2021 (7.1%) may
indicate specific factors affecting these years, such as market conditions,
company strategy changes, or external economic factors. Audi has generally
shown a positive growth trend in the percentage data from 2009 to 2021,
with some fluctuations along the way. The linear trend suggests a gradual
increase over time, although individual yearly performance can vary
significantly.

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Normal distribution for AUDI

The highest point is closer to the mean, suggesting that registration numbers
near 137,021.08 are more likely. It seems from the reduced spread that most
registration numbers lie in a more constrained range around the mean. In
comparison to Ford, the lower standard deviation (26,398.31) denotes more
consistent performance. Forecasting and strategic planning benefit from this
stability. Audi's reliability. Its dependability as a manufacturer warrants
continued attention.

BMW

The graph and table show BMW's percentage data from 2009 to 2021. The
linear trend line equation is 0.7952, indicating a strong fit to the data points.
The highest value is in 2018 (7.3%), while the lowest is in 2009 (4.9%). The

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percentages have remained relatively high in recent years (2018-2021), with

a slight dip in 2019 (6.9%), recovery in 2020 (7.1%), and strong growth in
2021 (7.0%). The mid period (2012-2017) saw consistent growth from 6.3%
to 6.9%, with slight fluctuations in 2013 (6.0%) and 2014 (5.6%). The overall
trend indicates robust growth for BMW, with the R-squared value indicating a
more consistent year-to-year performance compared to Audi. The data
shows less variability and a stronger upward trend compared to Audi data,
suggesting potentially more stable growth or effective strategies during this
period. BMW has achieved more consistent and sustained growth over the
years, with less fluctuation compared to Audi.

Normal distribution for BMW

The normal distribution chart for BMW is a bell-shaped curve, with the middle
part representing the most common values and the sides tapering off to
show fewer common values. The chart shows the X-axis (values) and Y-Axis
(Probabilities) of different possible outcomes for BMW. The highest point on
the curve indicates the most likely outcomes, which are around the middle
values. The lower ends of the curve represent less likely outcomes. Examples
from the chart include 97.177 (0.004731686), 125.89 (0.012239379), and
180.732 (0.005073371). The chart helps investors understand potential risks
and returns, while businesses can plan their strategies better by knowing the
most probable outcomes. The practical interpretation of the chart is that the
middle values indicate that values around 114.493 to 147.383 are the most
likely outcomes, while less likely values are at the lower ends of the curve.
This helps in making more informed decisions based on these probabilities.

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Mercedes

The linear trend line equation is 0.794, indicating a strong fit to the data
points. The highest value is recorded in 2019 (7.4%), while the lowest is in
2009 (3.7%). The percentages remained relatively high in recent years
(2018-2021), peaking in 2019 (7.4%), but decreased in 2020 (6.8%), and
further in 2021 (6.0%). The mid period (2012-2017) saw consistent growth
from 4.5% to 7.2%, indicating a strong upward trend. The overall trend
indicates significant growth for Mercedes, with the R-squared value
indicating a strong fit along the linear trend line. The data shows a strong
upward trend with some fluctuations, particularly a drop after 2019.
Mercedes has shown a steady and strong growth trend in the percentage
data from 2009 to 2021, with a strong upward trend with some fluctuations,
particularly a drop after 2019.

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Normal distribution for Mercedes

The distribution for Mercedes has been done and we can see from the
screenshot above that it starts to grow and then begins to go down when it
reaches its peak back to the starting point of the curve. It is also in a curve,
just like the others

Probability distribution

The data in the excel spreadsheet is collected from separate, non-

overlapping events. Each Audi percentage for the year stands alone and
doesn't mix with the others. This makes the events mutually exclusive.

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The mean, or average, is found in two ways: using probabilities and the usual
method (adding up all the percentages and dividing by the number of years).
In the spreadsheet, the mean calculated with probabilities (column H) is
6.3%, with a variance of 0.003242784 and a standard deviation of 0. 250221405.. This is
done by multiplying each percentage by its probability and then adding
those values up. The mean calculated by directly adding the percentages
and dividing by the number of years also comes out to 6.3%.

Each Audi percentage is given a frequency and a probability. The total

frequency adds up to 12, and the total probability adds up to 1, showing that
these events cover all possibilities and don't overlap.

Future trends can be predicted using this statistical data, which can also help
with decision-making when it comes to switching manufacturers or opening
new dealerships. These insights are helpful when it comes to our vehicle
dealership's strategic planning, especially given changes in the manufacturer
portfolio. The probability for each outcome is based on how often it occurs
out of the total events, ensuring each percentage is unique and independent.
The fact that the mean from the probability method matches the mean from
the direct calculation shows that the data is reliable, and the events are truly
separate. If the events were not separate, the two mean calculations would
differ because overlapping events would mess up the probabilities and
outcomes.

Trends
From 2009 to 2021, Volkswagen, Audi, Ford, and BMW registered a steady
trend with increasing registrations, peaking around 2016. Post-2016, there
was a noticeable sharp decline, especially evident from 2018 onwards. This
decline could be related to the Diesel gate scandal, which led to loss of
consumer trust and regulatory penalties. Audi registrations rose steadily until
about 2016, after which there was a pronounced drop. Ford registrations
showed a relatively stable trend with minor fluctuations, with a gradual
increase until a peak around 2016, followed by a decline. This could be due
to a strong lineup of models that maintain consistent consumer demand, as

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well as broader industry trends such as the shift towards SUVs and electric
vehicles.

BMW registrations showed a stable trend with peaks around 2015, followed
by a gradual decline. This could be due to increased competition from other
luxury brands and shifts towards electric and hybrid models. Common
factors influencing trends include the Diesel gate scandal, global economic
fluctuations, consumer preferences, technological advancements, and
regulatory changes. The average registrations for each brand provide a
benchmark for understanding their typical market performance. Volkswagen
had around 250,000 registrations, while Audi had approximately 150,000
registrations, Ford had around 200,000 registrations, and BMW had slightly
above 200,000 registrations, indicating consistent performance in the luxury
segment.

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The data shown shows the frequency and annual rankings for several
automakers from 2009 to 2021. Volkswagen distinguishes itself with a
steady top performance, regularly taking first place, especially in the early
and mid-2010s, demonstrating its market presence and resilience. This
consistently high score suggests a strong consumer preference and brand
reputation. Volkswagen's ability to retain top ranks despite obstacles like the
Diesel gate incident points to strong crisis management and enduring
consumer loyalty.

Another big participant, Audi, has been becoming better over time. Audi
started out in the middle of the pack but has now moved up, taking second
place in 2021. This improvement may be attributable to well-executed
product launches, excellent marketing plans, and a focus on innovation and
technical developments. Audi is becoming more and more competitive in the
luxury car market, as seen by its increasing trend.

BMW, on the other hand, shows a steady pattern, always placing itself in the
mid-to-high range with little variation. This consistency points to a constant
consumer demand and a dependable brand presence. BMW's steady
performance points to a devoted clientele and a solid market position in the
premium car industry.

Ford's results show a downward trend. The corporation has seen a severe fall
in recent years, but it held the top spot numerous times in the early 2010s.
There could be many reasons for this loss, such as heightened rivalry, a

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movement in consumer preferences towards electric vehicles, and perhaps a

slower rate of market adaptation than rival companies.

Mercedes consistently maintains lower-half rankings, exhibiting a falling or

constant trend. While maintaining a consistent presence, this stability at
lower ranks may point to difficulties in developing a competitive edge versus
other premium brands. Mercedes appears to have a steady consumer base,
but its rankings consistently indicate that it may face challenges in terms of
innovation and market perception when compared to its rivals.

There has been a noticeable drop in the market presence of brands like
Nissan, Peugeot, and Vauxhall, as they have completely disappeared from
the top rankings. Vauxhall was last seen in the rankings in 2013, whereas
Nissan and Peugeot were present until the middle of the decade. Their fall
from the ranks may have been caused by many things, including heightened
competition, shifting consumer preferences, and perhaps a failure to keep up
with industry developments like the move towards hybrid and electric cars.

The decrease and increase in car sales

Car sales can fluctuate due to various factors, including economic conditions,
interest rates, fuel prices, consumer confidence, government policies and
incentives, technology and innovation, demographic shifts, seasonal factors,
supply chain disruptions, and environmental concerns. Economic downturns
typically lead to decreased car sales, while upswings result in increased
disposable income. Lower interest rates encourage borrowing and spending,
while higher rates deter consumers from taking out loans. Fuel prices can
impact sales by increasing interest in fuel-efficient vehicles or alternative
fuel options, while lower prices may drive sales of larger vehicles. Consumer
confidence plays a significant role in car buying decisions, with optimism
about the future leading to increased sales. Government policies and
incentives, such as tax credits for electric vehicles or subsidies for fuel-
efficient cars, can stimulate sales in certain market segments.

Technological advancements, such as improved safety features and

autonomous driving capabilities, can drive sales as consumers seek out new
technologies. Demographic shifts, such as aging populations or urbanization
patterns, can also impact car sales. Seasonal factors, such as weather
conditions or end-of-year sales events, can also affect sales. Supply chain

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disruptions, such as shortages of key components or materials, can impact

production levels and sales. Environmental concerns, like climate change
and air pollution, can influence consumer preferences towards eco-friendly
vehicles. Understanding these factors can help manufacturers, dealerships,
and policymakers anticipate changes in demand and adapt their strategies
accordingly.

The total number of new car registrations in the UK market by make and
year is displayed in the table above. Manufacturers with relatively low car
sales (fewer than 100 registrations annually) have been eliminated from the
data through filtering.

It is evident that:

Throughout the years, Ford has continuously been the best-selling

automaker in the UK, with over 200,000 new registrations in 2019 alone.

The second and third most popular automakers are, respectively,

Volkswagen and Vauxhall. But over time, fewer people have registered for
either of them.

Over the years, new registrations for BMW and Mercedes have increased
steadily, with BMW surpassing Mercedes in 2019.

In terms of new registrations, Audi has demonstrated a cyclical pattern,

peaking in 2017 and declining in 2019.

A decline in revenue is evident between 2020 and 2021 for several reasons.
A decline in 2020 can be linked to the previously mentioned issues. But in
2021, Ford's sales continued to fall as preceding graphs had indicated, but
Volkswagen's sales deviated from the pattern. This might be explained by
Volkswagen's 2021 model release, which increased sales across the board.
Nevertheless, because of the ongoing epidemic and other financial issues

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hurting the world economy, there were still widespread decreases in 2021.
The graphs might not always be true because there could be other factors
influencing these figures.

Based on the data on new car registrations, Ford appears to be the most
popular car manufacturer in the UK market, with VW and Vauxhall following
closely behind. While Audi is exhibiting erratic patterns, Mercedes and BMW
are expanding steadily.

P6
Recommendations/considerations for the analysis

Considerations
A dealership's investment decision about a car manufacturer may be
influenced by several variables related to auto sales. The market and target
customer base of a dealership will determine which automaker to invest in.
Finding the manufacturer that will work best for your dealership requires
investigation and analysis.

Here are some considerations:

1. Understanding Variability: Variability in registration numbers indicates

market volatility and the need for adaptive strategies to mitigate risks
and capitalize on opportunities.
2. Market Trends and Adaptation: Brands must monitor market trends
closely and adapt strategies accordingly to maintain relevance and
competitiveness in the automotive industry.
3. Consumer preferences: Understanding consumer preferences and
trends is key in choosing the right manufacturer to invest in. For
example, if there is a growing demand for SUVs, a dealership may
want to consider investing in brands such as Jeep or Ford, which are
known for their SUV models.
4. Continuous innovation in products, services, and customer experiences
is key to differentiation and maintaining a competitive edge in the
market.

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5. Brand image and reputation play a significant role in consumer buying

decisions. Consistent quality and reliability are essential for building
trust and loyalty.
6. Collaborations with other companies, technology firms, and research
institutions can help innovation and open new opportunities for growth
and market expansion.
7. Availability of credit: If access to credit is tight, customers may be
more likely to consider purchasing used cars. In this case, a dealership
that specializes in used cars may be a good option.
8. Fuel prices: If fuel prices are high, consumers may be more interested
in purchasing fuel-efficient vehicles. Toyota, Honda, and Ford are some
manufacturers that offer hybrid and electric vehicles.
9. Sustainable Practices: Embracing sustainable practices in
manufacturing, distribution, and operations is increasingly important
for meeting consumer expectations and regulatory requirements.
10. Digital Transformation: digital technologies and data-driven insights
can enhance operational efficiency, customer engagement, and
decision-making processes across the value chain.
11. Understanding global market dynamics, including geopolitical factors
and economic trends, is essential for strategic planning and risk
management in the automotive industry.

Recommendations
Ford should continue to leverage its strong brand presence and market
penetration, analysing successful strategies from peak years like 2015 to
improve upon them. Volkswagen should maintain stability by focusing on
quality and reliability to maintain registration numbers. Vauxhall should
analyse peak performance years like 2016 to identify key factors
contributing to high registrations and replicate successful strategies. Audi
should capitalize on its steady growth by expanding its product line and
innovation efforts. BMW should optimize its product offerings and marketing
strategies based on successful years like 2016, aiming for consistent growth
and market share expansion.

Mercedes should work on reducing variability by stabilizing its product

offerings and improving customer retention strategies. All manufacturers
should analyse peak registration years to understand market conditions and
successful strategies for future planning and adaptation. Brands with higher

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variability should focus on customer retention programs to stabilize

registration numbers. Investing in innovation is essential for brands like Audi
and BMW to maintain and grow their market share. Regular market analysis
is also crucial for long-term success and competitiveness.

M4/M5

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M6/D3
Conclusion
Based on the analysis of new car registrations by make and year, it evidently
shows that the directors need to consider their dealership options carefully.
Ford remains the most popular car manufacturer, but the downward trends
for Volkswagen and Vauxhall suggest these brands may not offer the best
growth potential. On the other hand, the steady growth of BMW and
Mercedes makes them appealing candidates for expanding dealership
networks. However, Audi's variable performance requires further evaluation
before making any commitments.

The overall number of new car registrations has been declining from 2016 to
2019, with a slight increase in 2020. Despite these changes, the distribution
of new registrations among the top manufacturers has stayed relatively
stable, with only minor shifts in their rankings.

This report has provided valuable insights into the new car registration data
for the top six car manufacturers in the UK market, helping the directors
make informed decisions about the future direction of their business and
which brands to prioritize for dealership expansions.

Factors affecting car sales.

Car sales are influenced by a lot of different factors, and understanding
these can help explain the ups and downs in the market.

1. Firstly, the state of the economy has a big impact. When the economy
is doing well, people feel confident and are more likely to buy new
cars. But during tough economic times, like a recession, people tend to
hold back on big purchases like cars. Similarly, consumer preferences
can change over time. For example, SUVs and crossovers have become
very popular in recent years, and there's also a growing interest in
electric and hybrid cars because of environmental concerns.

2. Fuel prices are another important factor. When gas prices are high,
people often look for cars that are more fuel-efficient or even consider
electric vehicles. On the other hand, when gas prices are low, bigger

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cars like trucks and SUVs become more attractive. Technological

advancements also play a role. New features like advanced safety
systems, better infotainment options, and even self-driving capabilities
can make new cars more appealing. Improvements in battery
technology and more charging stations have made electric cars more
practical and popular as well.
3. Government policies and incentives can have a big influence too. Tax
breaks or rebates for buying electric or hybrid cars can boost their
sales. At the same time, stricter emissions standards mean car
manufacturers must produce cleaner cars, which can affect what types
of cars people buy. The reputation of a car brand also matters a lot.
Brands that are known for being reliable and having good customer
service tend to have higher sales, while those that have been involved
in scandals can see a drop in sales.

4. Pricing and financing options are crucial as well. Competitive prices

and attractive financing deals, like low-interest loans or good leasing
options, make it easier for people to afford new cars. Seasonal trends
also affect sales, with more cars typically sold in the spring and
summer months, as well as during end-of-year sales when dealerships
offer big discounts to clear out their inventory.

5. Demographic changes can influence car sales too. For example, an

aging population might prefer cars that are easier to get in and out of,
while more people living in cities might increase the demand for
smaller, more efficient cars, or even public transportation and ride-
sharing services. Cultural factors also play a role; in some cultures,
owning a car, especially a luxury one, is a status symbol that drives
sales of high-end vehicles.

6. Environmental policies and insurance costs are also important. Strict

emissions standards and congestion charges in cities can encourage
people to buy more eco-friendly cars. High insurance premiums can
deter people from buying certain types of cars, while discounts for
safer or more eco-friendly cars can boost sales.

7. Resale value is another consideration. Cars that hold their value well
are more attractive to buyers because they are a better long-term

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investment. This is closely tied to brand perception; brands known for

making durable, long-lasting cars often have higher resale values.
Consumer confidence, shaped by the overall economic outlook, also
affects car sales. When people feel financially secure, they're more
likely to make big purchases like cars.

8. The availability of alternatives, such as good public transportation or

popular ride-sharing services, can reduce the need for owning a car. A
strong network of dealerships and service centers makes it easier for
people to buy and maintain their cars, positively affecting sales.
Technological integration in cars, like having the latest connected
features and the ability to receive updates, attracts tech-savvy buyers.

9. Supply chain efficiency is important too. Keeping enough inventory on

hand ensures that popular models are available, reducing waiting
times for buyers. Events like natural disasters or political tensions can
disrupt supply chains, affecting production and availability of cars.
Interest rates and access to credit also play a role; lower loan interest
rates and easier access to credit make it more affordable for people to
finance a car.

10. Attractive warranty and maintenance packages can add value to

a car purchase. Extended warranties and free or discounted
maintenance services can reassure buyers, making them more likely to
buy a new car. All these factors together show how complex the car
market is and how many different things can influence car sales.

Other factors can significantly affect sales, including a company's safety

reputation and innovative technologies like Tesla's self-driving capabilities.
Over the years, vehicle safety has greatly improved, and Tesla's inclusion of
many safety features makes their cars more attractive to buyers, potentially
boosting sales. Additionally, a company's use of AI and other technologies in
decision-making processes—such as timing new vehicle releases, crafting
advertisements, developing marketing strategies, and managing public
relations—plays a critical role in influencing sales. All these elements can
greatly affect a company's sales performance.

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Final Thought
Market and economic factors must be considered when analysing sales data,
rather than depending exclusively on numerical projections. As a result, I
recommend that the auto dealership speak with a qualified economist in
order to stay current on market developments and obtain insightful
knowledge that will enhance the precision of their data analysis. Data
cleansing is an important process that needs close attention to detail
because even little mistakes can have a big effect on the dealership. I
analysed the data using a variety of statistical, probability, and mathematical
techniques to get insightful conclusions. I organised and cleaned the data
before beginning the analysis to guarantee clarity and promote efficient
analysis.

Based on historical sales data, I recommended the car dealership on which

vehicles to buy and why. I'm not aware of any additional variables, such as
shifts in the economy or market trends, that would influence it. It is crucial to
read trade journals, attend conferences, keep up with industry
advancements, and watch rivals if you want to remain competitive.

I recommend that the dealership devote half of their money to electric

automobiles, with Tesla being a prime investment choice, considering the
rising demand for electric vehicles. It would be helpful to consider other
manufacturers of electric vehicles, though. It's also a good idea to invest in
vehicles with automatic transmissions because of their present high demand
and convenience of usage. As self-driving technology develops, many
automobiles might come equipped with it as standard. Traditional cars might
still be popular, though, especially with certain groups of people or for use-
roading. The auto industry will keep developing and adapting to shifting
consumer demands and advances in technology.

In conclusion, there is a growing demand for electric automobiles due to

governments worldwide enforcing stronger pollution restrictions and
consumers becoming more ecologically concerned. Because people were
under lockdown and not using their cars, the epidemic also caused
disruptions to the auto industry, resulting in the temporary closure of several
facilities due to a decline in consumer demand. There may be less demand
for gasoline-powered vehicles due to this development.

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Bibliography
 Cody, I.D. Data Analytics: Practical Data Analysis and Statistical Guide
to Transform and Evolve Any Business Create Space Independent
Publishing Platform. 2016 978-1536875379
 Factors affecting car sales – https://www.paautosales.com/14-factors-
that-determine-car-sales/
 What can affect car sales? - Tech InShorts

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