2019 Data. Spanish automotive suppliers forecast a 20-30% drop in turnover in 2020
As every year, the Spanish Association of Automotive Suppliers (SERNAUTO) provides the sector's data for the previous year and its forecasts for the current year.
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. 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 that this plan should combine measures to help both supply and demand and thus 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.
Industry Data for 2019
The reduction in vehicle production worldwide, uncertainty, and commercial tensions, together with the major changes occurring in the sector (mobility, automated driving, digitalization and electrification), have led the turnover of automotive suppliers based in Spain to drop slightly in 2019, to 35.82 billion euros, 3.6% less than in 2018.
Bearing in mind that worldwide vehicle production was down 5.2% in 2019, the impact on automotive supplier turnover in Spain was less, thanks to its market and customer diversity, its increased competitiveness, and its commitment to technological leadership.
There was also a slight 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 is characterized by its stability, quality, and distribution throughout the country. In fact, it accounts for over 10% of industrial employment in several Autonomous Communities.
In 2019, the automotive supplier sector generated more than 365,000 direct and indirect jobs.
Aiming to remain at the forefront of technology, automotive suppliers continued to make a strong commitment to R&D&I, investing 4.1% of their turnover (almost 1.46 billion euros), three times the industrial average.
Investment in production capacity was roughly 1.9 billion euros again, keeping up the ongoing effort over the years to remain competitive and adapt to customer demands.
In 2019, industry exports were down 3.1% to 20.75 billion euros, i.e. 58% of turnover.
Concerning turnover in the domestic market (15.07 billion euros), the supply of equipment and components to vehicle manufacturers accounted for 9.80 billion euros (-4.6%), whereas 5.27 billion came from the aftermarket (-3.9%).
SERNAUTO General Manager José Portilla points out: "We were in the midst of an unprecedented industrial and technological transformation that the pandemic has only accelerated. 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 that 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.”