Automotive Industry and Components in ??Automotive Industry and Components in Europe ... the world's largest single ... Frost Sullivan, figures from 2002 2,0% 8,1%

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  • Automotive Industry and Components in Europe

  • Automotive Industry and Components in Europe

    The purpose of this presentation is to:

    Demonstrate the importance of the European Union the world's largest singlemarket

    Outline its future dimensions as it expands towards the east

    Describe the present status and future prospects for automotive componentswithin this market

    Explain why Baden-Wrttemberg is the ideal location from which to serve theautomotive components market Europe wide

  • In the last two decades, the sharp contrasts between the Western and the Eastern European countries have been fading and the European Union is the major driver for Europes integration.

    Since May 2004, Poland, the Czech Republic, Slovakia, Hungary, Slovenia, the Baltic States, Cyprus and Malta are members of the European Union. In 2007, Romania and Bulgaria are expected to join the EU.

    European integration opens up a vast market for your company with untold market opportunities.

    Europe is expanding towards the East

    Source: German Federal Statistics Office, EUROSTAT, OECD (2003)

    EU Members (since 2004)Potential EU-members in 2007

    European UnionPopulationArea (km2)GDP (Euro)

    453 m3 891 m

    9 714 bn

    Eastern Europe (non-EU)

    90m581m

    173bn

    PopulationArea (km2)GDP (Euro)

    (excl. Russia)

  • The leading Markets in EuropeIn 2003, the 25 member states* of the European Union had a total Gross Domestic Product of Euro 9 714 bn, exceeding the GDP of the USA (Euro 9 710 bn) and Japan (Euro 3 817 bn).

    Four of the member states Germany, Italy, France and the UK are among the six largest economies of the world. Of these, Germany has the highest GDP, the largest population, and the highest purchasing power.

    Within Germany, the State of Baden-Wrttemberg, Germany`s southwest, is one of the most prosperous and innovative regions.* including new members from May 2004Source: German Federal Statistics Office, EUROSTAT, OECD (2003)

    IS

    GB

    DK

    S

    FINN

    NL

    F

    E

    PI

    AUTCH

    B

    IRL

    GR

    SLOH

    SKCZ

    D

    BG

    RO

    UA

    PL

    BYLT

    EWLV

    RUS

    Dimension of total GDP

  • The right Location for Growth and Prosperity

    Baden-Wrttemberg is already the most highly industrialized and one of the most prosperous regions in Germany.

    Its proximity to important markets east and west makes it an ideal location for pan-European activities.

    And it has further merits:

    It has a highly developed infrastructure suppliers, R&D facilities, business services.

    Its workforce is well trained, innovative and productive.

    Its companies have an established export orientation and know how to penetrate new markets.

    It is set to succeed in the 21st Century.

    Germanys Southwest:Baden-Wrttemberg

  • Europe the most attractive automotive supply market

    Of the 58 million cars and commercial vehicles produced worldwide, 19.5 million (more than a third) were produced in Europe, more than in the NAFTA (16.7 million) and in as much as in the Asia-Pacific region (19.5 million).

    In addition, many of the European car manufacturers have additional production sites outside Europe, while the purchase of automotive supply parts is handled in the Euroean Headquarters.

    SouthAmerica

    (MERCOSUR)

    1.8

    16.7

    NorthAmerica(NAFTA)

    Europe

    19.5

    Others

    0.5

    Global Production of Cars and Commercial Vehicles (in million units)

    Source: Automotive News Europe, figures from 2002

    Asia-Pacific

    19.5

  • Germany Europes largest automotive supply market

    Germany is the largest producer of automotive components with a large number of small and medium-sized companies in this sector, many of them very specialized.

    The European Automotive Components Industry(in % of total sales)

    Source: Frost & Sullivan, figures from 2002

    2,0%

    8,1%

    16,0%

    25,7%

    48,5%

    Rest of Europe

    Italy

    UK

    France

    Germany

  • Germany Europes largest automotive supply market

    With more than 5 million cars and more than 350,000 commercial vehicles, Germany is the largest EU automotive manufacturer and also the largest market for automotive components, accounting for

    51% of the EU OEM market and

    25% of the aftermarket.

    European Production of motor vehicles (million units)

    Source: VDA Jahresbericht, figures from 2002

    0

    0,02

    0,05

    0,07

    0,04

    0,12

    0,3

    0,19

    0,59

    0,41

    0,35

    0,04

    0,13

    0,18

    0,18

    0,23

    0,94

    1,13

    1,63

    2,27

    3,28

    5,12

    FINLAND

    AUSTRIA

    NETHERLANDS

    PORTUGAL

    SWEDEN

    BELGIUM

    ITALY

    UNITED KINGDOM

    SPAIN

    FRANCE

    GERMANY

    Cars

    Commercial Vehicles

  • 20%

    24%

    29%

    53%

    61%

    74%

    7%

    7%

    11%

    26%

    33%

    44%

    Body

    Engine

    Chassis

    Interior

    Axles

    Gear

    Strong growth expectations for European automotive suppliers

    While vehicle production is expected to grow by 16% until 2010, the share of value added by automotive suppliers is expected to rise from 65% to 75% in 2010.

    As a consequence the automotive supply industry is expected to exceed the car manufacturers growth rates. Until 2010, the automotive components industry will grow by 40%.

    A foothold in Germany - the most important automotive production location in Europe will become a key to success in the European automotive supply market.

    Automotive Suppliers are expected to gain a larger share on the value of the vehicle

    (Expected technology fields relevant, % of mentioning)

    Source: VDA; results of expert interviews with managers in the car industry in 2003

    In 2005

    In 2010

  • Constant Growth in Europes automotive supply market

    The EU market for automotive components grew by more than 20% between 1999 and 2003.

    In view of the growing importance of the suppliers role it is expected to grow further.

    The European Automotive Components Industry(in billion )

    Source: Frost & Sullivan

    103,4

    122.3130,1 125.6 126 130,2

    134,1

    '99 '00 '01 '02 '04 '05'03

  • Growth Opportunities for High-Tech Companies

    High-quality, high-tech products are increasingly in demand

    The market is growing and will continue to increase

    There is room for new market entrants among the wide range of producers

    EU norms and standards are not a hurdle, but an opportunity to serve an ever-expanding market

  • Eastern Europe is an attractive Growth MarketBesides China, Eastern Europe is considered the most interesting growth market for automobiles.

    While the registrations grew by 7-8% between 2000 and 2002, the next years are expected to show growth by 9 to 12% in car registrations.

    The Western European automotive supply market will play a major role within this growth scenario, as many of these cars are produced in Western Europe or Central European factories of EU car manufacturers. The total European market attractiveness will further increase in the next years.

    New car registrations in Eastern Europe recent data and forecast (in thousands)

    Source: Prognose-Institut B&D-Forecast* forecast

    2 2762 447

    2 6182 925

    3 199

    2001 2002 2003 2004* 2005*

    7.6% 7.0

    %11.

    7%9.4

    %

  • New Targets for Automotive Suppliers in Eastern Europe

    Source: OICA 2004, Die Welt 2004, facts and figures from 2002

    Revoz (Renault: 66,7%)Production: 126 674 Vehicles

    Slovenia

    Volkswagen Poznan: Production: 40 00 Vehicles

    Poland

    Deawoo FSO Motor:Production: 25 000 Vehicles

    Opel Polska:Production: 89 669 Vehicles

    Fiat Auto Poland:Porduction: 184 473 Vehicles

    Hyundai/Kia:Production: 300 000 Vehicles

    Slovakia

    Volkswagen Slovakia:Production: 201 742 Vehicles

    PSA:Production: 300 000 Vehicles

    Skoda:Production: 442 469 Vehicles

    Czech Rep.

    Toyota Peugeot CitronAutomobile Czech:Production: 300 000 Vehicles

  • New Targets for Automotive Suppliers in Eastern Europe

    Source: Global Auto Systems Europe Kft. 2003, figures from 2002

    Total production: 16425 Vehicles

    Belarus

    Russia

    FordProduction: 16 261 Vehicles

    GAZProduction: 198 135 Vehicles

    ISC-Izh-Avto:Production: 78 236 Vehicles

    OKA:Production: 40 013 Vehicles

    ZAO Roslada:Production: 41 100

    UAZ:Production: 69 599 Vehicles

    VAZ:Production: 699 889 Vehicles

    Magyar SuzukiProduction: 86 808 Vehicles

    Hungary

    Audi Hungaria Motor:Production: 53 606 Vehicles

    Dacia (Renault: 92,75%):Production: 57 376 Vehicles

    Romania

    Daewoo (GM):Production: 21 793 Vehicles

  • New Targets for Automotive Suppliers in Eastern Europe

    In 2002, 2.7 million cars have been produced or assembled in Eastern Europe.

    With an expected growth of 30%, the output will climb to 3 million units in 2005.

    Russia, Poland and the Czech Republic are expected to account for 75% of the total output.

    Source: Economist Intelligence Unit

    2 5412 658 2 722

    2 850 2 941

    300 304 306 308 318

    2000 2001 2002 2003 2004

    Vehicle Production Forecastfor Central and Eastern Europe (in thousands)

  • Baden-Wrttemberg and its Automotive IndustryThe motor vehicle industry has a long tradition in Baden-Wrttemberg:

    Th

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