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Car sales to witness decline, subassembly industry to rise

The local car market will stagnate this year and is expected to drop 20 pct in 2009, whereas on the other hand, investments in the subassembly industry will rise.

According to the major players in this industry, the auto market's shrinking trend will be offset by the constant demand of over 25 pct of the total for Dacia cars and by Ford vehicles produced in Craiova (south of Romania) hitting the market.

Automobile Dacia representatives consider that the market of new cars will shrink 20 pct next year on the background of tighter lending terms and the rise in the demand for second-hand cars. 'If the market of new cars equals this year the level of 2007 we will consider this a great success. For 2009, I estimate a dramatic fall by at least 15-20 pct in demand for new cars and a significant rise in sales of second-hand cars,' said Automobile Dacia vice-president Constantin Stroe, who also chairs the Association of Romanian Car Manufacturers (ACAROM).

Stroe said that despite the global economic crisis, Dacia will preserve its 26 pct share of the Romanian market and its exports will go up, driven by demand for low-cost models on international markets. Stroe said that his company will for sure fare well through the economic crisis because it mainly relies on exports, where demand for low-cost models is high. According to the cited official, in Q1 2009 Dacia will rise its annual production to 400,000 units.

The representatives of the major local car importer - Porsche Romania - consider that Ford's entry on the Romanian market will stabilize the business in the years to come.

As for subassembly manufacturers, the Dacia representative considers that despite the crisis, not only will investors in this sector pull out, but there will be an additional investment inflow.

'The producers of subassemblies will keep on investing in Romania, encouraged to a certain extent by the financial crisis because of low workforce costs,' said the ACAROM representative. The Porsche Romania representative shares the same opinion, considering that investments in this sector will continue despite pressure for higher wages.

 

Sursa: http://www.rompress.ro

Tags: demand dacia market industry subassembly car

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