MADRID – Strengthening economic fundamentals in Europe fuel an 8% increase in Spanish parts sales, according to SERNAUTO, the Spanish Association of Components and Systems for the Automotive Industry.
SERNAUTO says greater access to credit, thanks to a zero-percent-interest-rate policy from the European Central Bank, and falling oil and raw materials costs underpin revenue exceeding €32 billion ($35.5 billion) in 2015.
Auto components and systems makers also generated an estimated 8,000 new jobs in Spain during 2015, a 4% improvement. Direct employment grew to 205,000 jobs. Combined with indirect positions, employment in the sector reached 330,000. Parts making represents over 10% of the industrial employment in five regions of Spain.
Spanish parts makers generated sales of €13.1 billion ($14.5 billion) in the domestic market in 2015, with €8.5 billion ($9.4 billion) of it related to automaker activity and €4.6 billion ($5.1 billion) from the aftermarket. Both figures are up by about 8% compared with 2014, says SERNAUTO President Maria-Helena Antolin.
Antolin says export value reached €18.9 billion ($21 billion), a 7.5% increase vs. 2014. Exports accounted for 59% of sales and more than 80% when taking into account the components and systems installed in vehicles that are exported as complete vehicles.
Spanish parts makers also invested more than €1.8 billion ($2 billion) to increase local production capacity and €1.2 billion ($1.3 billion) in R&D, a 30% uptick over 2014.
“For the auto components and systems industry, (R&D) is a key factor to maintain its capacity and technological differentiation, and thus, its competitiveness globally,” says Antolin, a member of the Antolin family that controls the Spanish Antolin Group, which recently took over the interiors business of Magna International.
Antolin says last year’s gains are the result of the commitment by parts makers to innovate, as well as internationalize their business and improve production quality.
SERNAUTO’s outlook calls for continued growth in the parts sector this year, with a 7% sales gain and an employment increase of 3%.
Two years ago, the association published its strategic agenda, detailing measures necessary to maintain the competitiveness of the sector and underpin its growth. With last year’s data in hand, SERNAUTO says the sector has covered nearly 60% of the €6.8 billion ($7.5 billion) in sales targeted in the plan for 2020.
Export sales have reached 79% of the targeted total and R&D reached 70% of the planned increase, while 40% of the job gains have been achieved.
