The Romanian automotive industry shows a solid, steady growth. According to the estimates of the Association of Automotive Manufacturers of Romania (ACAROM), the Romanian automotive market will grow with a total 12% in 2015. In the first 5 months of 2015, automotive production increased by 9%, the export being 1.2% lower than in the same period of last year. Internal automotive sales increased by 35%, while the ratio of second hand cars vs. new cars produced domestically and sold in Romania is 7.3/1 (the average age of second hand cars is 10.6 years).
The Romanian automotive industry is more than vehicle assembly
In the past 10 years, many international suppliers installed production facilities in Romania. Thus, the automotive parts sector became diversified and globalized, bringing many changes to the horizontal industry:
- deep drawing and sheet units;
- technical rubber components;
- ball bearings, planetary gears, cam levers;
- electronic/mechatronic modules;
- optical devices;
- batteries and rechargeable batteries;
The total turnover of the automotive industry in 2014 was estimated to 18 billion Euro, a 7% increase from 2013. As regards the turnover of the automotive parts sector, it increased by 8.7% in 2014 as compared to 2013. The entire automotive industry is estimated to have contributed around 12% to the Romanian GDP in 2014. The main drivers of this sector remain the Renault Group via the international “entry” programme and the export of components, directly or through integrators.
Key data on the romanian automotive industry
- the turnover of the automotive sector was approx. 18 bln. Euro in 2014, of which 12.6 bln. Euro in parts manufacturing.
- Number of companies: more than 600
- Total employees: 203,600 (direct jobs)
- Labour costs in the local manufacturing industry: 4.9 euro/hour
- Volume of spare parts sales on the internal market: 2 bln. euro
- National fleet: around 6 mil. vehicles
- 158 international automotive parts suppliers have production facilities in Romania. Some of them also carry out research and development activities.
Against an economic background of moderate growth, supported by the international success of Dacia and the demand on the German market, the Romanian automotive parts sector continues its robust growth. Despite the high number of recent investment projects in the field of automotive components, the pace of investments in the sector is not living up to its full potential.
The global demand of motor vehicles and spare parts follows an increasing trend. The forecast of the light motor vehicle sales to 2021 estimates the largest growth on the B segments, small class (36%), and C segment, compact class (32%), the exact same motor vehicle classes which are built in Romania.
The global market trend is estimated to rise from 406 bln. Euro in 2010 to 664 bln. Euro in 2025. As compared to 2015, the world production of automotive parts will increase by around 130 bln. Euro in the following 10 years. The parts for “entry level” vehicles will account for 258 bln. in the global growth until 2025.
The maximum increase will be that of engine parts, with an annual average of 4.8%. Approx. 70% of the growth will be generated by the BRIC markets, China taking a share of 113 bln. Euro. According to estimates, China will surpass all other countries in terms of growth for all types of parts (article based on data courtesy of ACAROM).
The Association of Automotive Manufacturers of Romania - ACAROM is a professional body of companies involved in the automotive industry, associated in order to represent the interests of the automotive sector. ACAROM, a non-profit organization, has 144 members and was set up in 1996. ACAROM is a member of the CL of ACEA – European Automobile Manufacturers' Association. What the member companies have in common is that they design, manufacture and sell motor vehicles, materials, parts, modules, vehicle parts or provide related services and equipments for the manufacturing and maintenance of motor vehicles.