Automotive Suppliers in Spain Generate Over €41 Billion Amid Slowdown

The Current State of the Automotive Supply Industry

The Spanish Association of Automotive Suppliers (SERNAUTO) has disclosed the industry’s financial outcomes for 2024, indicating a slowdown phase following two consecutive years of growth. Inflation has partially influenced this development.

Financial Performance in 2024

In Spain, automotive suppliers generated an impressive turnover of €41.238 billion, reflecting a slight decline of 0.7% compared to 2023. Despite this dip, the sector remains above the €40 billion milestone first reached in 2022. The growth trajectory included a hearty 10.3% rise in 2023 one year after a record growth of 17.8% in 2022.

Industry Challenges and Investment

While the sector continues to invest heavily in technology, internationalization, and production improvements, the persistent challenges within the global industry—including low production volumes and tight profit margins—cannot be ignored. Furthermore, inflation continues to erode the real revenue value for companies.

Investment Trends

In alignment with the market’s shift after the growth period, investments in productive capacities exceeded €1.466 billion in 2024. This represented a stark decline of 12.3% compared to the previous year. Nevertheless, it highlights suppliers’ commitment to maintaining a competitive and innovative edge.

Research and Development Initiatives

Similarly, the investment in Research, Development, and Innovation (R&D) reached €1.245 billion in 2024, translating to 3% of total revenue. This figure, while still significantly higher than the Spanish industrial average, indicates a slight 2% decrease from 2023. This situation underscores the growing need for public policies that support innovation projects nationally.

Employment Landscape

The employment figures in 2024 showed that the industry provided jobs to 325,200 people, both directly and indirectly. Direct employment remained relatively stable, with 203,250 positions (-0.7%). The jobs generated are characterized by high quality, significant geographical distribution, and advancements in technology. This stability reflects the commitment of automotive suppliers to technological adaptation and compliance with regulations, alongside efforts to retain talent in a particularly challenging environment.

Investment Decline and Future Risks

Yet, this decline in investment poses a crucial concern regarding the potential shift of projects to more attractive countries, which offer better incentives and favorable conditions for industrial development.

The Importance of Public-Private Collaboration

SERNAUTO emphasizes the significance of public-private collaboration, urging government authorities to implement an ambitious and coordinated national strategy aimed at attracting investments. This strategy is deemed crucial to strengthen strategic autonomy and establish Spain’s leadership in implementing a more sustainable, digital, and safe mobility framework.

Resilience Amid Transformation

The Spanish components industry has exhibited remarkable resilience, but the far-reaching impacts of unprecedented transformations—spurred by decarbonization, digitalization, and regulatory demands—have direct implications for investment levels and business growth. The adjustments in key indicators such as productive investment or R&D raised alarms about the necessity for a robust national strategy that envisions decisive support for small and medium enterprises (SMEs) to enhance competitiveness.

Export Factors

In 2024, exports reached a total of €25.065 billion, showing a minimal decrease of just 0.3% compared to 2023. This figure highlights the strength of the Spanish component industry in international markets and underscores the role of foreign trade as a growth lever for businesses.

Domestic Market Performance

On the domestic front, revenue reached €16.174 billion, showcasing varied performance: supply chain revenue dropped 6.7% (to €9.419 billion), while the aftermarket surged by 7.3% (to €6.755 billion), solidifying its crucial role within the sector.

Forecast for 2025

Looking ahead to 2025, SERNAUTO’s preliminary projections suggest that, while challenges will persist, the sector’s revenue is expected to hold steady against 2024. This forecast aligns with the ongoing slowdown due to low production volumes, global uncertainties, tight margins, and low profitability. Efforts to maintain employment levels are anticipated to continue, with a focus on attracting more digitally advanced and skilled profiles.

Influence of Global Factors

These projections are contingent upon the evolution of vehicle production, market conditions, and the global geopolitical and economic landscape. José Portilla, SERNAUTO’s General Director, stresses the importance of initiating effective support measures for this strategic sector, including improving operating margins for suppliers and extending public-private collaboration through initiatives like PERTES and a robust Renove Plan to promote decarbonization and demand.

Sonuç

The automotive supply industry has weathered significant changes, showcasing its foundation’s resilience even as transformation challenges emerge. Whether prompted by decarbonization initiatives, shifting regulations, or global trends, the industry’s ability to adapt remains critical. However, even the most comprehensive reviews and well-intentioned feedback cannot replace personal experience. On GetTransport.com, an efficient and cost-effective global transportation solution is available, making it easier to navigate your shipment or relocation needs at competitive prices. With a user-friendly platform offering various logistics services from bulky goods to international freight, GetTransport.com remains a go-to resource for your moving and logistics needs.

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