It is a known fact that the European Union (EU), of which Romania is an integral part, is a leading exporter and importer of automobiles in the global market. Romania has recently attracted a large number of investors in the automotive industry, all thanks to the country’s strategic location, easy availability of low-cost labor, investor friendly government policies, and high demand for automotive goods in the local market. Additionally, the presence of automotive giants such as Dacia Renault and Ford has prompted suppliers in Romania to set up a number of manufacturing plants.
In terms of product, the Romanian automotive industry can be broken down into three major segments:
- Consumables and accessories
- Mechanical and electronic parts
- Service parts
Since 2009, the rate of motorization in Romania has consistently grown. It is for this reason that the Romanian market is marked with the presence of both regional as well as international manufacturers. In order to meet the growing demand of the automotive industry, these manufacturers are collaborating with retailers and distributors to expand their sales networks. This can account for why the Romanian automotive industry is experiencing a great deal of technological innovation, product extensions, and an increased number of mergers and acquisitions (M&A).
Some of the latest trends in the Romanian automotive market include the following:
High demand for batteries
According to analysts at Technavio, the Romanian automotive industry is geared to witness a steady rise in the demand for batteries by 2020. In particular, the demand for lead-acid batteries has increased in the market, resulting in higher production levels.
Adoption of electronic devices
Similar to what is happening across the globe, the Romanian automotive industry is experiencing increased adoption of electronic devices and components. This is mainly because today’s customers prefer to have their automobiles equipped with the latest electronic gadgets and devices, such as active and passive safety systems and infotainment systems.
High demand for automotive spare parts and accessories
One key factor that has contributed immensely to the growth of the automotive industry is the demand for automotive accessories and spare parts. Also, with favorable government policies, there has been increased investment in the automotive spares and accessories industry. This has resulted in Romania emerging as a major supplier of spare parts in the EU and Middle East automotive markets.
In conclusion, the Romanian automotive industry is a highly competitive one that should be paid close attention to by analysts and investors alike. The market is undergoing increased consolidation and has also attracted a number of private labels, which have begun making their way into the market. Some of the key vendors in the Romanian automotive industry include CML Innovative Technologies, Kromberg & Schubert, IAC Romania, Marquardt Schaltsysteme and Robert Bosch.
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