Whereas car sales exceeded production in 2007, only one car was sold for every ten cars made in the first half and most of the production goes abroad. In Italy for instance, sales stood at more than 730,000 cars in the first half, while production reached about 220,000.
Romania ranked second among the ten largest car manufacturing countries in Europe by ratio of cars made to new cars sold (ten to one), according to the statistics of the European Automobile Manufacturers’ Association (ACEA) and the International Organization of Motor Vehicle Manufacturers (OICA).
Romania is behind Slovakia, where 16 cars are made for every new car sold, while in the Czech Republic the ratio is lower, one to seven.
Romania manufactured almost 304,000 cars in the first nine months and sales of new cars stood at 48,400, a 6 to 1 ratio, according to the data of the Association of Automotive Manufacturers and Importers (APIA).
Its production growth rate reached 20%, the fastest in Europe, driven by Dacia, which is headed to a new all time high of 343,000 cars, and by Ford, with despite the production shutdowns in September and October is headed towards 60,000 cars.
Moreover, both Dacia and Ford also focus on component production, with Ford planning to make 200,000 1.0 liter and 1.5 liter Ecoboost engines. While Dacia exports 90% of its production compared with 60% to 70% six years ago, Ford exports 99%.
“Manufacturers generally choose to have their vehicles assembled as close to the markets they sell them on as possible for maximum flexibility in terms of customization. On the other hand, relocating component production is easier and the decision to relocate has to do with the necessary production optimization,” said Bogdan Belciu, a partner with the management consulting department of PricewaterhouseCoopers Romania.
Ford cut production of cars in Craiova by almost 7,300 units in September and October, worth a total of almost EUR110 million, according to ZF’s calculations, which makes a direct impact on the country’s exports.
Despite having two large car plants, the local car market lost almost 80% of sales in the last five years, as Romanians preferred to buy mostly second hand vehicles imported from Western Europe. The second hand market will reach 200,000 cars this year compared with 60,000, the estimated volume of new car sales.
The ratio of cars made to cars sold is shrinking fast in Western Europe and stands at less than one in most countries. The only exceptions are Germany, where a new car is sold for every two cars made and Spain where the ratio is 2.5. In France, UK, Belgium and Italy, sales of cars exceed production.
The same could have been said for Romania in 2007, when car sales were higher than car production. In the last year of growth for the local market, sales stood at 315,000 units and production at 234,000 units, therefore a ratio of almost 0.8.
(English version by Loredana Fratila-Cristescu)