Automotive News Europe - September 2011 - 12

AUTOMOTIVE NEWS EUROPE

MARKETS

SPECIAL

REPORT

TOURISM HELPS BUT SALES DECLINE
JOAQUIM OLIVEIRA
autonewseurope@crain.com

The car markets in Spain and Portugal are in a poor state. While Spain is economically SPAIN much stronger than its Iberian neighbor, the country has seen a dramatic plunge in new-car sales PORTUGAL in the past three years. Armando Garcia Otero, Renault’s commercial director, said it’s all about consumer confidence. “In 2003, Spain had 16 million employed people and 1.5 million cars were sold that year,” he said. “This year there are 18 million people with a job and the car market has lost 1 million units. This can only mean that people are focused on their savings and feel uncomfortable with the idea of purchasing right now.” With new-car sales forecast at 830,000 for 2011, Spain should just about keep its position as one of Europe’s top five markets, but volume is back to 1990 levels – down to 900,000 last year from 1.65 million in 2005. Sales to private customers fell 50 percent in the first half to 191,571. The steep decline is blamed on a scrapping program in the first six months of 2010 that artificially boosted sales. Spain’s tourism industry is propping up the fleet business. In the first half, fleet and rental car sales rose by 5.1 percent and 6.9 percent,

dropped 38.7 percent and Hyundai was down 14 percent. Among reasons was the lack of a strong fleet business. Winners in Portugal New-car sales in Portugal peaked at 410,000 in 2000 but it has been downhill since. Helder Pedro, head of the ACAP industry association, forecasts sales at 170,000 units this year, the lowest volume since 1988. There are no signs of recovery since the country is now deep in recession. All brands in the country top five suffered sales declines in the first half. No. 1 Renault was down 31.3 percent. Second-placed VW fared better with a 9.5 percent drop. Declines at No. 3 Peugeot, and fourth-ranked Opel were more than 15 percent. No. 5 Ford was down 23.5 percent. Value brands did better, with Hyundai’s 12.2 percent sale gain being the biggest among the top 20. Dacia is having a great year. Sales at Renault’s low-cost brand have more than doubled to 1,114 units. Nissan is also on a roll with first-half sales up 6.6 percent, thanks to the Qashqai and Juke SUV-styled crossovers. Said Nissan country manager Diogo Jardim: “Portuguese buyers are fond of crossover vehicles without the added cost of the more complex 4x4.” ■

Spanish consumers are not spending, says Armando Garcia Otero, Renault’s commercial director. “People are focused on their savings and feel uncomfortable with the idea of purchasing right now,” he said.
respectively. These two sales channels combined are now worth a little more than half of the country’s total new-car sales, compared with 25 percent just a year ago. All the top five brands saw sales fall steeply in the first half. No. 1 seller Seat was down 27.3 percent and No. 2 VW fell 24.5 percent. Ford, at No. 3, declined 27.7 percent, while fourth-ranked Opel saw a 23.4 percent drop. No. 5 Peugeot suffered a 36.3 percent fall. Even lower-priced brands are suffering. Fiat was down 39.8 percent, Chevrolet sales

CRISIS BENEFITS DACIA, HYUNDAI
SUSANNE KILIMANN, STEFAN GROUNDHOFF
autonewseurope@crain.com

The country’s public debt crisis has plunged the Greek car market into unknown territory. GREECE Sapped by high borrowing costs, near-20 percent unemployment and falling wages, Greece’s new-car sales are expected to slide to 124,000 this year from 142,000 in 2010, according to the Economist Intelligence Unit. The downturn is hitting all brands, except low-cost marques such as Renault’s Dacia, Hyundai and Kia. “The Greek market is almost nonexistent,” BMW sales and marketing chief Ian Robertson told Automotive News Europe. Last year, car sales in Greece tumbled after the country’s first scrappage program was canceled in late 2009. A new scheme, launched in February, pays owners of cars at least 12 years old 2,800 euros to trade-in for a new vehicle. Business Monitor International says the scheme has proved ineffective owing

2007 when the country enjoyed sustained economic growth, but slipped in 2008, and nosedived in 2009 and are not forecast to return to anywhere that level in the foreseeable future. Sales will rise gradually in the coming years to 151,000 in 2015, forecasts the Economist Intelligence Unit. IHS Global Insight foresees some significant brand shifts occurring over the next five years. Led by a projected decline of some 7,000 units by longtime market leader Toyota, IHS forecasts that Japanese-brand sales will tumble a combined 30,000 units from their 2008 peak to 50,000 by 2016. Opel and Volkswagen brands also will lose sales and market share, but Dacia will gain.

“The Greek market is almost nonexistent,” BMW sales boss Ian Robertson said.
to Greece’s high level of taxation on new-car purchases and high ownership costs. The country’s car sales peaked at 280,000 in

Hyundai No. 1? Hyundai will be the Greek market’s big winner, IHS predicts. The forecaster says the Korean brand’s sales are expected to rise nearly 70 percent over its 2008 levels to more than 30,000 units in 2016, making it Greece’s top selling brand. ■

ANE EXECUTIVE EDITION

SEPTEMBER 2011

Automotive News Europe - September 2011

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