Autoparts from Spain, as a platform supporting the internationalization of Spanish automotive suppliers, is placing even greater emphasis on studying all the opportunities that the Chinese automotive market presents to the Spanish aftermarket sector.
This is commonly known, as evidenced by the fact that all companies affiliated with Autoparts from Spain are active in China. However, it is now gaining even greater significance, not only for the Spanish components sector but as a lever that can contribute to the recovery of the Spanish economy after the health emergency situation.
Sonia López, president of the Foreign Affairs Commission of SERNAUTO, believes that currently, the automotive sector in China is one of the most dynamic markets, thanks to the measures taken to stimulate demand in the sector after the slowdown caused by the coronavirus.
China is the world's leading vehicle manufacturer and the second-largest global vehicle fleet. It is also one of Spain's main trading partners. In recent years, this market has shown growth rates that make it an important customer for our exports, and it is one of the few that closed the 1st quarter of 2020 with growth rates.
Eduardo Morcillo, Managing Partner of InterChina Consulting, states that the Asian economy has an industrial production index of over 50%, indicating a rapid recovery. An evident example is the automotive sector, with a production chain already operating at 98% activity levels.
Regarding vehicle sales estimates, it is considered that the year will close with only a 10% decline, with figures around 19 million units. Additionally, two clear trends stand out: the role of the aftermarket segment, which is expected to experience significant growth, and the strong consolidation process among OEMs and at Tier1 and Tier2 supply levels.
Looking ahead to the second half of the year, there are two disruptive changes: the presence of Tesla in China, expected to increase electric vehicle sales, and a significant portion of the young consumer segment, which previously used public transportation and technology-linked mobility alternatives but now prefers private vehicles.
One of the companies part of our platform, RTS, maintains that their decision to expand into a "new" market like China was motivated by strategic reasons and the internal consumption potential this country offered.
After 15 years in China, adapting to the market and culture, and with a dedicated local team, they strengthened their presence by establishing a technical-commercial subsidiary and a trading company. This move aimed to enhance their presence not only in the local market but throughout the Asia-Pacific region. Currently, they supply both the supply chain, especially in electric vehicles, and the local aftermarket, achieving diversification from the parent company.
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