CBI - Ministry of Foreign AffairsCBI - Ministry of Foreign Affairs

CBICBICentre For the Centre For the Promotion of Imports Promotion of Imports from developing from developing countriescountries

Industrial Expro SeminarIndustrial Expro Seminar The HagueThe Hague November 2013November 2013

By: Jan Oude ElferinkBy: Jan Oude Elferink JOE (Global)Automotive Support B.V.JOE (Global)Automotive Support B.V.

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EU MARKET TRENDS

By: Jan Oude ElferinkJOE (Global)Automotive Support

B.V.

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EUROPE ?

By: Jan Oude ElferinkJOE (Global)Automotive Support B.V.

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Languages About 45 languages and dialects are spoken in Europe

12 official languages in the EU

Example Belgium:

Dutch/Flemish (57%), French (33%), German (1.5%), Luxemburgeois (0.5%)

Example Switzerland:

Schwyzerdutsch (66%), French (33%), Italian (14,5%), Rheto-Romance (0.6%)

Source:Ethnologue: A catalogue of more than 6.700 languages spoken in 228 countries;

www.sil.org/ethnologue/

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Go to: www.cbi.eu

Click: Market Intelligence Platform

Click: Select your market sector: Automotive Parts & Components

Click: Trends

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Trends (Source:CBI Market Trend Mapping for Automotive)

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SOCIAL MARKET DRIVEN TRENDS

Aging Creates special needs like comfort, eysightsupport

Congestion in

Some urban

areas Increasing demand for different solutions, f.e. smaller cars, increasing usage of bicycles

Income disparity Growing gap between the haves and the have-nots

Understanding

customer needs More varied options compatible with individual and emerging social groups

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SOCIAL MARKET DRIVEN TRENDS 2

Owning a car becomes less

important Will lead to new marketing concepts

Focus on sustainable and

environmentally-friendly

products Will lead to other material(s)

Stagnating sales new cars Shorter product cycles, more varied and customised

offering

Global growing population Put pressure on the food market and will drive the demand for agricultural machinery

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TECHNOLOGICAL MARKET DRIVEN TRENDS

Increasing innovation Growing expertise in emerging economies

New automotive players (f.e. China)

New non-automotive players (f.e.Google, Apple)

In Eurpoe shortage of skilled people because the industry is becoming

less attractive to talented people

Pressure on carbon-

free vehicles Huge investments in different technologies

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TECHNOLOGICAL MARKET DRIVEN TRENDS 2

Increasing IT integration Car reliability will increase leading to older car fleets thus increased demand for replacement parts

Increasing connectivity

Incorporation ITC continues to itensify

On-going change in products produced (shorter product lifecycles). Consumers demands those products that suit their lifestyle

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TECHNOLOGICAL MARKET DRIVEN TRENDS 3

Innovative lightweight and

sustainable materials Hybrid materials, composites as biodegrable materials (for interior parts)will be increasingly in demand

Growing demand for aluminium, plastics and nanomaterials

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ECONOMIC MARKET DRIVEN TRENDS

New car sales stagnates Average age car park increases=more opportunities in

the Aftermarket

Relocation Production

to East and Central Continuing cost pressure

Europe

Shut down of Western Consequences for the vendor base?

plants

Outsource responsibility

of 1st. Tier suppliers Increasing supplier power and more

grow interdependency

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ECONOMIC MARKET DRIVEN TRENDS 2

Fast growth emerging New markets for DC exporters

countries

Automotive market More competition for European

continues moving to vendor base

emerging Asian

economies

Chinese & Indian Car

Makers will attempt entering

the European market Throat cutting business,survival of the strongest!

For opportunities/consideration/actions visit:Download full document

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Sector Automotive (2)

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Production of automotive parts in Europe, in € million.

Sector Automotive (3)

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Data source: Eurostat Data source: Eurostat

Figure 5 Share of import of automotive parts by EU27+EFTA countries, 2011

Figure 6 EU+EFTA most growth of import of automotive parts, 2007-2011, in %

Sector Automotive (4)Competitiveness for Automotive Parts and Components

Buyer Power is and will remain strong

Buyer power is very strong and centered around OEMs and 1st-Tier suppliers. These two actors are expected to share most of the buying power in the years to come and as their price pressures increase, they will continue to transfer them to their lower-tier suppliers. Lower-Tier Suppliers, Wholesalers and Retailer will present an interesting opportunity for the DC exporters, as will the emerging economies in East and Central Europe.

For more details: See module Competition

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2-Wheelers

Bicycles

Mopeds (engines 49 cc)

Motorbikes (engines 125 – 1250 cc)

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Bicyles

City bicycle

Hybride incl. tracking bike Hybride incl. tracking bike

Child bicycle

Electrical bicycle

Other (incl. racing bicycles, MTB/ATB and folding bikes

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SOCIAL MARKET DRIVEN TRENDS

Aging People want to stay fit and go for biking

Congestion in

Some urban

areas Increasing usage of bicycless

Understanding

customer needs More varied options compatible with individual and emerging social groups

Focus on sustainable

and environmentally-

friendly products Will lead to other material(s)

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TECHNOLOGICAL MARKET DRIVEN TRENDS 3

Innovative lightweight and

sustainable materials Growing demand for aluminium, plastics and nanomaterials

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Major EU Bicycle producers (>500K)X 1000 2010 2009 2008

Italy 2.489 2.590 2.380Germany 2.224 2.250 2.370Netherlans 971 1.200 1.129Poland 958 900 1.110Portugal 850 850 1.100France 845 733 1.057Hungary 533 500 600Romania 500 450 500Czech Republic 435 450 600

Source: Bike Europe Market Reports

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In millions Total Per head

The Netherlands 18,0 0,9

Denmark 4,4 1,2

Germany 66,0 1,3

Norway 3,0 1,4

Sweden 6,0 1,5

Finland 3,3 1,6

Switzerland 3,8 1,9

Belgium 5,2 2,0

Italy 26,5 2,2

Austria 3,3 2,5

Ownership Total/ One bicycle per head of population

In millions Total Per head

United Kingdom 23,0 2,5

France 20,0 2,9

Hungary 3,5 3,1

Romania 5,0 4,4

Spain 7,0 5,7

Source: Bike Europe Market Reports

Ownership Total/ One bicycle per head of population

Registrations and deliveries PTW’s (Powered Two Wheelers) in the EU: monthly evolution 2012 vs. 2011

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Production of PTWs (Powered two wheelers)in Europe(source:acem/eu)

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Production of PTWs (Powered two wheelers)in Europe(source:acem/eu)

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Circulating Park PTW’s

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