Spanish automotive suppliers are forecasting a 20%-30% drop in turnover in 2020, while employment in the sector is expected to fall between 6% and 10%.
By comparison, in 2019, turnover in the Spanish automotive components industry reached EUR35.82bn (US$41bn), 3.6% less than in 2018, while direct employment dropped 2% to 225,400 jobs.
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In spite of this, investment in R&D is 4.1% of turnover or three times the Spanish industrial average said the Spanish Association of Automotive Suppliers (SERNAUTO).
“According to the initial estimates, a substantial 20-30% drop is expected in turnover for the automotive supplier sector in 2020 as a result of the economic crisis caused by the Coronavirus,” said a SERNAUTO statement sent to just-auto from Madrid. “If this forecast is fulfilled, this would also affect employment generated by automotive suppliers, which would decrease significantly: direct employment alone would drop by 6-10%.
“Once again, these figures reveal the pressing need to implement an emergency national plan that will enable a faster reactivation of the sector, combined with a mid- and long-term plan, given its strategic role in the Spanish economy and society.”
SERNAUTO suggests this plan should combine measures to help both supply and demand and achieve a greater impact on the economy. In addition to renewal of the vehicle stock, aid linked to industrial development should be implemented so as not to lose competitiveness.
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By GlobalDataIndustry Data for 2019:
Reduction in vehicle production worldwide, uncertainty and commercial tensions, together with major changes occurring in the sector (mobility, automated driving, digitalisation and electrification), have led the turnover of automotive suppliers based in Spain to drop slightly in 2019, to EUR35.82bn, 3.6% less than in 2018.
There was also a 2% drop in direct employment created by the sector, which currently stands at 225,400 jobs, 5,000 less than in 2018. This direct employment accounts for more than 10% of industrial employment in several Autonomous Communities.
In 2019, the automotive supplier sector in Spain generated more than 365,000 direct and indirect jobs. Industry exports were down 3.1% to EUR20.75bn or 58% of turnover.
Concerning turnover in the domestic market (EUR15.07bn), the supply of equipment and components to vehicle manufacturers accounted for EUR9.8bn (-4.6%), whereas EUR5.27bn came from the aftermarket (-3.9%).
“We were in the midst of an unprecedented industrial and technological transformation that the pandemic has only accelerated,” said SERNAUTO general manager, José Portilla.
“It is essential for us to put a national plan in place as soon as possible to support our companies and build confidence both among our customers and in the market. We cannot afford to lose the leadership we now have in Europe and worldwide, because it would have serious repercussions on the jobs and the well-being of millions of families.
“This is the time to innovate, join forces, and boost the supply and demand of vehicles.”
Founded in 1967, SERNAUTO covers more than 85% of the sector. It represents an industry comprising more than 1,000 companies, which supply components to the 17 vehicle manufacturing plants in Spain.
It ranks third in terms of exports, accounting for 58% of domestic production and reaching 82% if components installed in exported vehicles are taken into account.
SERNAUTO is recognised by the Spanish Government as the association representing the sector in Spain.
SERNAUTO is a member of the board of CLEPA, the European Association of Automotive Suppliers.
