Record year for car component exports
Portugal’s 265 factories that churn out car components hit an all-time production record in terms of exports in the first half of 2019.
The absolute record for the first half of 2019 translated into receipts of €4.404Bn which corresponds to a like-for-like increase of 2.6% and a growth of 72% when compared to exports registered at the start of the financial crisis and recession in 2010 according to the European Association of Automotive Suppliers (CLEPA) and Portuguese Automotive Industry Manufacturers Association (AFIA).
But sales of car parts to the United Kingdom plummeted by 13.9% for the period January to June 2019 with Brexit uncertainties fuelling a fall in car production contracts and output in the UK.
According to the FT, UK car production plummeted between 15-20% this year as domestic demand stalled and exports fell with production declining for the 12th consecutive month, hitting orders for Portuguese automotive components hard.
From January to June 2019 car component exports were up 2.6%. In relation to export countries, these maintain the same trend and profile with the lion’s share going to Spain, Germany, France and the UK.
These four markets represent 71% of all exports with the other 29% going to countries outside Europe such as the United States, Morocco, China, Mexico and Turkey.
Sales to Spain were up 8.6%, Germany 2.1%, France 1.9% but sales to the United Kingdom plummeted 13.9%.