Challenges to ensure the competitiveness of the automotive industry
Posted: Mon Dec 09, 2024 9:07 am
The automotive industry in Spain is undergoing a comprehensive transformation to maintain its competitiveness in the face of global challenges and trends, as well as changes in consumer habits.
One of the most significant challenges for the sector is the transition to sustainable mobility. With the arrival of electric vehicles, the industry is forced to adapt completely, modifying its supply and assembly chains.
Currently, only 9% of vehicles sold in Spain are electric. This is compared to the average of 25% in the European Union or 24% in China. However, a recent study confirms that 65% of Spanish consumers would prefer to purchase an electric model when buying a new vehicle. botim phone number data Projections indicate that by 2035, 25-30% of sales will still be of internal combustion vehicles. This adoption rate is considered insufficient if the European Union ratifies its intention to ban the sale of internal combustion vehicles.
Despite these challenges, the automotive industry is facing this transformation from a leading position. With 11 factories spread across the country, Spain is the second largest car manufacturer in Europe. It also has a strong auxiliary industry made up of more than 700 companies in the automotive components sector. However, it is important to note that Spain does not have any national automotive groups. It even has one of the lowest rates of investment in research, development and innovation (R&D&I).
In this context, future viability relies on two key elements: accelerating the transition to electric vehicles and maintaining industrial competitiveness. To achieve this, it is necessary to act both from the consumer and industrial perspectives. Without forgetting the support of public administrations and associations.
From the consumer perspective, it is necessary to promote public purchase incentive programs that encourage the renewal of the vehicle fleet, which is the second oldest in Europe with an average age of more than 13 years, as well as its progressive electrification. It is also essential to strengthen the electric charging infrastructure, with the goal of reaching 350,000 charging points by 2035.
On the other hand, from an industrial perspective, it is crucial to carry out the reconversion of the components sector, migrating from the manufacture of components for internal combustion vehicles towards a new auxiliary industry with a much more technological and digital approach.
To carry out this transformation and ensure the future viability and competitiveness of the automotive industry in Spain, an investment of more than 150 billion euros will be required by 2035. This will ensure the transformation of the industry through electrification and the renewal of the vehicle fleet, the development of charging infrastructure, the promotion of talent, investment in R&D and battery production, among other aspects. During this transition towards electrification, it is important to attract the necessary investment so as not to be left behind in the construction of gigafactories.
Raw materials essential for battery manufacturing, such as cobalt, lithium or rare earths, deserve special mention. The European Union produces only 1% of these materials, which makes us totally dependent on other markets, mainly Asian. Measures such as the creation of a network of European Agencies to mitigate risks, supply disruptions or price increases are therefore needed. In addition, it is important to commit to policies that strengthen the industry and guarantee its competitiveness. Likewise, it is important to identify and monitor critical raw materials for the sector.
One of the most significant challenges for the sector is the transition to sustainable mobility. With the arrival of electric vehicles, the industry is forced to adapt completely, modifying its supply and assembly chains.
Currently, only 9% of vehicles sold in Spain are electric. This is compared to the average of 25% in the European Union or 24% in China. However, a recent study confirms that 65% of Spanish consumers would prefer to purchase an electric model when buying a new vehicle. botim phone number data Projections indicate that by 2035, 25-30% of sales will still be of internal combustion vehicles. This adoption rate is considered insufficient if the European Union ratifies its intention to ban the sale of internal combustion vehicles.
Despite these challenges, the automotive industry is facing this transformation from a leading position. With 11 factories spread across the country, Spain is the second largest car manufacturer in Europe. It also has a strong auxiliary industry made up of more than 700 companies in the automotive components sector. However, it is important to note that Spain does not have any national automotive groups. It even has one of the lowest rates of investment in research, development and innovation (R&D&I).
In this context, future viability relies on two key elements: accelerating the transition to electric vehicles and maintaining industrial competitiveness. To achieve this, it is necessary to act both from the consumer and industrial perspectives. Without forgetting the support of public administrations and associations.
From the consumer perspective, it is necessary to promote public purchase incentive programs that encourage the renewal of the vehicle fleet, which is the second oldest in Europe with an average age of more than 13 years, as well as its progressive electrification. It is also essential to strengthen the electric charging infrastructure, with the goal of reaching 350,000 charging points by 2035.
On the other hand, from an industrial perspective, it is crucial to carry out the reconversion of the components sector, migrating from the manufacture of components for internal combustion vehicles towards a new auxiliary industry with a much more technological and digital approach.
To carry out this transformation and ensure the future viability and competitiveness of the automotive industry in Spain, an investment of more than 150 billion euros will be required by 2035. This will ensure the transformation of the industry through electrification and the renewal of the vehicle fleet, the development of charging infrastructure, the promotion of talent, investment in R&D and battery production, among other aspects. During this transition towards electrification, it is important to attract the necessary investment so as not to be left behind in the construction of gigafactories.
Raw materials essential for battery manufacturing, such as cobalt, lithium or rare earths, deserve special mention. The European Union produces only 1% of these materials, which makes us totally dependent on other markets, mainly Asian. Measures such as the creation of a network of European Agencies to mitigate risks, supply disruptions or price increases are therefore needed. In addition, it is important to commit to policies that strengthen the industry and guarantee its competitiveness. Likewise, it is important to identify and monitor critical raw materials for the sector.