COVID EASES AND SPANISH CAR INDUSTRY CAME TO LIFE AGAIN
As competition from outside of Europe increases and the COVID-10 global epidemic fades, Spanish car plants are roaring together again. 85% of cars made in Spain are exported to European markets. This year, the Financial sector is bouncing back rapidly as internal and overseas activity picks up. In Spanish market, there are many brands working in the automotive sector that are reviewed on OpinionesEspana. You should read the reviews if you are thinking of getting into this sector.
However, main potential risks persist, including the continuation of the health emergency, a deteriorating tourism sector that is vulnerable to permanent disruption, and stubbornly stagnant wages. The economy is expected to rise 6.6 percent in 2021, down 0.6 basis points from last month’s estimate, and 4.2 percent in 2022.
Medium Term market trend
The Spanish automotive industry was on the rebound after a precipitous decline in value following the financial crisis of 2009 when it fell by more than half. The state has aided the industry’s revival, which is critical for a sector that is Europe’s second-largest auto manufacturer, by implementing a program known as PIVE, which encourages the scrapping of older cars in exchange for new ones that emit lower levels of pollution. Also, car accessories were on their decline.
In 2020, the financial sector has declined greatly as a result of the pandemic’s devastating effect on the rest of the world. In reality, the drop was so severe that we saw the average unemployment level for the nation since 2013, with 858.022 units sold, down 31.8% from the previous year. The business began the new year on a very bad note in January 2021, with revenue still reduced by half, with just 47.119 units sold, a 52.8 percent decline from the preceding year.
2020 was difficult for Spain automotive industry
Even before the coronavirus shut down plants, closed showrooms, and caused revenues to plummet, the automotive industry was gearing up for a difficult year. Changes are about to get very Solipsistic: the sector is poised to readjust in directions that will have a significant impact on the eight million people who work for automakers around the world.
Since so many workers are at risk in Europe, it is hard to finish a plant without civil unrest and opposition parties. Back payments to staff and other expenses will make closing a plant as costly as building one.
Electric Vehicles:
Even as gasoline commercial vehicles were decimated by blockades, electric car sales remained highly adaptable. Electric vehicle prices declined 31% in April as a result of the closings, according to Mr. Schmidt’s calculations. But that was nothing compared to the 80 percent drop in the overall European automotive industry.
It’s unclear if the increase in electric vehicle sales is a trend or a one-time occurrence. Mr. Schmidt said that many of the autonomous cars that were licensed early this year had been pre-ordered. Car manufacturers may have extended their time shipping cars purchased in 2019 in order to meet tighter European Union carbon dioxide emission limits that went into effect in 2020.
In the months ahead, car manufacturers may not be as eager to market electric vehicles. They’ll be inclined to promote SUVs anyway, which make even more money and are cheaper to trade now that gas prices have dropped.