Study: Romanian auto industry can grow 7 percent per year by 2020

With over 150,000 people and a contribution to exports of 47% in 2016, the automotive industry is one of the main pillars of the Romanian economy, with a total turnover exceeding 20 billion euros and very good prospects in the 2020 horizon, according to a study by Euler Hermes, a company specialized in commercial credit insurance and in the field of guarantees and debt collection, a subsidiary of Allianz.

In 2016, the auto sector registered a 9% growth rate in Romania, while the global advance was only 1.6%. At this rate, we can talk about an increase of 6-7% per year by 2020, the study points out.

The total turnover of the automotive sector in 2016 exceeded 20 billion euros, mainly due to exports, while the local market remains relatively small, focusing on second-hand vehicles.

Until now, the sector has been driven by automakers, with Dacia-Renault ranked 11th at European level, with nearly 360,000 units in 2016. At present, however, most of the growth comes from car parts and components manufacturers, stresses the study.

As far as the suppliers' market is concerned, it includes both production facilities like Daimler, as well as numerous contractors such as Delphi, Draexlmaier, Leoni or Continental, but also small local entrepreneurs, which are suppliers for large manufacturing companies.

Regarding the evolution of the internal market, 2016 was one of the best years in the last decade, with a 17.4% increase in the number of vehicle registrations, reaching 510,000 units, of which new cars are approximately 22% (115,000 units).

Also, the financial leasing market was on a plus in 2016, with a 25% gain, up to two billion euros, of which almost 77% are cars and light utility vehicles. Companies accounted for 97% of total financial leasing customers, followed by individuals, with 2% and the public sector, with 1%.

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