Developments in the Romanian Automotive Industry
The Romanian car industry is one of the best-performing sectors of the national economy
Mihai Pelin, 31.05.2017, 13:26
The Romanian automotive industry has seen steady growth in recent years, after the acquisition of Automobile Dacia, based in Mioveni, by the French group Renault, and Fords investment in a production facility in Craiova, in the south of the country. While in 2014 the turnover of the sector was around 18 billion euros, in 2015 it exceeded 20 billion euros, to reach 22 billion euro last year. At present, 13% of the GDP comes from this sector, which also generates nearly one-quarter of the countrys exports.
Around these two major industrial platforms, as well as in several large Romanian cities, companies have also developed, which provide equipment and parts to carmakers around the world. The engines, gear boxes and other components made in Mioveni are shipped to several facilities of the Renault-Nissan Group and fitted on the vehicles assembled there. So are the EcoBoost engines designed by Ford and made in Craiova, which are sent as far as to Brazil and China. Gabriel Sicoe, the head of the Romanian Carmaker Association, confirms the positive trend of this sector:
Gabriel Sicoe: “Exports reach 13 billion euros, accounting for one-quarter of the national exports. The local market for new vehicles has resumed its growth. We have had three years of growth, at an average rate of 19%. Still, the market remains nearly three times smaller than the level before the global economic crisis.
The greatest challenge for the local market remains the import of second-hand vehicles, which benefits neither the environment, nor the national budget. In contrast, for each new car made in Romania and registered here, the state budget receives 3,500 euros. Here is Gabriel Sicoe again with details:
Gabriel Sicoe: “Last year, 3 imported second-hand cars were registered in Romania for each new car sold here. Since the scrapping of the environment charge in February, this ratio doubled. The impact is disastrous for the sales of new cars in Romania. In the second half of this year we intend to push for the taxation of second-hand vehicle imports, which are brought in the country by individual buyers and the state budget gets no benefits, and for tightening technical regulations on these vehicles.
In spite of these problems, major producers continue to invest in Romania. Michelin has announced investments of over 33 million euros in the tyre plant in Zalau, in the north-west, while the Japanese company Calsonic will begin works next year on a new unit near Ploiesti, in the south. The facility will produce vehicle components both for the domestic market and for international clients.
(translated by: Ana-Maria Popescu)
