Free Report:
The Oil Industry is here to stay: A worldwide assessment of current issues
Free Energy Market Research Reports
Automotive
Batteries & Fuel Cells
Chemical Industry & Markets
Coal
Energy
Maps
Metals
Nuclear
Oil & Gas
Petroleum
Power
Renewables
Custom Research
Energy Events & Conferences
Contact
Terms & Conditions
Privacy
Home >
Spain Autos Report Q3 2010
Management Report
Published: June 2010
Pages: 56
Tables: For full details, please email keithw@cmsinfo.com
From: GBP 353.33 Buy Now!
Research from: Business Monitor International
Sector: Automotive
The Greek debt crisis has raised fears of contagion effects in Spain alongside Portugal and Ireland, making European carmakers concerned about a dragging recovery in the region's auto demand. On May 12, the Spanish government said it will cut public sector pay and curtail public investment by EUR6bn, which BMI believes will fall heavily on consumer demand, thereby prompting us to limit our vehicle sales forecast to just over 1mn by 2014, significantly less than the 1.36mn units sold in 2008. The extension of the scrappage scheme - or the 2000E plan - to the end of the year and the low base from last year’s sales helped passenger car sales rise a robust 43.2% year-on-year (y-o-y) in the first four months of 2010. However, whether this trend will continue is highly questionable, given that funds allocated towards the scrappage scheme are likely to be used up by mid-2010. BMI, therefore, maintains its forecast of a near 7% y-o-y fall in total vehicle demand in 2010. We expect this to be followed by painful demand conditions caused by poor finances among consumers, contracted credit, high unemployment and the austerity measures adopted by government.
The Greek debt crisis has raised fears of contagion effects in Spain alongside Portugal and Ireland, making European carmakers concerned about a dragging recovery in the region's auto demand. On May 12, the Spanish government said it will cut public sector pay and curtail public investment by EUR6bn, which BMI believes will fall heavily on consumer demand, thereby prompting us to limit our vehicle sales forecast to just over 1mn by 2014, significantly less than the 1.36mn units sold in 2008. The extension of the scrappage scheme - or the 2000E plan - to the end of the year and the low base from last year’s sales helped passenger car sales rise a robust 43.2% year-on-year (y-o-y) in the first four months of 2010. However, whether this trend will continue is highly questionable, given that funds allocated towards the scrappage scheme are likely to be used up by mid-2010. BMI, therefore, maintains its forecast of a near 7% y-o-y fall in total vehicle demand in 2010. We expect this to be followed by painful demand conditions caused by poor finances among consumers, contracted credit, high unemployment and the austerity measures adopted by government.
Meanwhile, we expect Spain’s production to be affected by its dependence on Western European markets, most of which are poised for negative growth this year owing to scrappage schemes ending. On the back of our estimates of an overall 6% y-o-y fall in Europe auto demand this year, BMI limits Spain’s 2010 production forecast to just over 2mn units, down 4% y-o-y. With little evidence of any substantial increase in production capacity in the country to offset production losses announced by existing carmakers, BMI expects production to reach 2.35mn units by the end of 2014 - still remaining a far cry from the 2.89mn units produced in 2007.
As Spain increasingly loses its status of the manufacturing hub in Western Europe, the government has turned its attention to making the country a hub for advanced research and environmental engineering. The plan received yet another boost when, in May 2010, Ford Motor revealed it will build its first hybrid model for Europe at its Valencia plant. The project is only the second EV project in the country after Renault’s plans to build a small electric car from 2011, followed by a low-emission gasoline engine in 2012.
The competitive landscape of Spain saw a complete overhaul in the first four months of 2010 after some of the top players attempted to bag early gains in the auto demand recovery. Peugeot and Citroën stood as the biggest market players in Spain in the four months period, together occupying the nearly 20% of the market. Meanwhile, SEAT, a one-time market was pushed to the third with a smaller 8.7% share of the market. Continued weakening in the Spanish brand’s presence both at home and abroad has prompted its parent Volkswagen to consider a massive upheaval for the brand in the next five year.
Meanwhile, we expect Spain’s production to be affected by its dependence on Western European markets, most of which are poised for negative growth this year owing to scrappage schemes ending. On the back of our estimates of an overall 6% y-o-y fall in Europe auto demand this year, BMI limits Spain’s 2010 production forecast to just over 2mn units, down 4% y-o-y. With little evidence of any substantial increase in production capacity in the country to offset production losses announced by existing carmakers, BMI expects production to reach 2.35mn units by the end of 2014 - still remaining a far cry from the 2.89mn units produced in 2007.
As Spain increasingly loses its status of the manufacturing hub in Western Europe, the government has turned its attention to making the country a hub for advanced research and environmental engineering. The plan received yet another boost when, in May 2010, Ford Motor revealed it will build its first hybrid model for Europe at its Valencia plant. The project is only the second EV project in the country after Renault’s plans to build a small electric car from 2011, followed by a low-emission gasoline engine in 2012.
The competitive landscape of Spain saw a complete overhaul in the first four months of 2010 after some of the top players attempted to bag early gains in the auto demand recovery. Peugeot and Citroën stood as the biggest market players in Spain in the four months period, together occupying the nearly 20% of the market. Meanwhile, SEAT, a one-time market was pushed to the third with a smaller 8.7% share of the market. Continued weakening in the Spanish brand’s presence both at home and abroad has prompted its parent Volkswagen to consider a massive upheaval for the brand in the next five year.