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Market Survey: Production Forecast Eastern EU up to 2010.
Market Survey: Production Forecast Eastern EU up to 2010.
Market Survey: Production Forecast Eastern EU up to 2010.
In May 2004, eight new countries joined the European Union. Their offer to the automotive industry is well-trained operators and engineers at low wages, cheaper land for production sites and duty-free domestic production conditions.
What is more, cars built in these countries are from now on treated as domestic European products. This means that they are no more subject to cross-border taxes or other duties.
We have forecasted the production scenario until 2010 for these new EU member states and some member candidates, like Turkey. By 2010, total European production is supposed to consolidate at around 15 Million cars/year, compared to a production of 16 Million units in 2003.
We predict a rise in the share of these new EU member states and confirmed candidates for adhesion from 1.5 Million cars/year to 4.0 Million units per annum.
As a consequence of these two elements, in western EU countries, a production capacity of approximately 4 Million units, or 25%, will be at disposition between 2006 and 2010.
We have run an analysis by car segment on the anticipated 4 Million production volume in the enlargement part of the new EU. It shows that essentially two segments are concerned, that is the small (B) and lower-medium segment (C). In 2010, the combined B and C segment production volume will make up 3 out of the 4 million units built on an annual base.
The reason for this choice in car segments and the possible consequences for Western EU countries producing B and C segment volumes are discussed in this article.
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In May 2004, eight new countries joined the European Union. Their offer to the automotive industry is well-trained operators and engineers at low wages, cheaper land for production sites and duty-free domestic production conditions.
What is more, cars built in these countries are from now on treated as domestic European products. This means that they are no more subject to cross-border taxes or other duties.
We have forecasted the production scenario until 2010 for these new EU member states and some member candidates, like Turkey. By 2010, total European production is supposed to consolidate at around 15 Million cars/year, compared to a production of 16 Million units in 2003.
We predict a rise in the share of these new EU member states and confirmed candidates for adhesion from 1.5 Million cars/year to 4.0 Million units per annum.
As a consequence of these two elements, in western EU countries, a production capacity of approximately 4 Million units, or 25%, will be at disposition between 2006 and 2010.
We have run an analysis by car segment on the anticipated 4 Million production volume in the enlargement part of the new EU. It shows that essentially two segments are concerned, that is the small (B) and lower-medium segment (C). In 2010, the combined B and C segment production volume will make up 3 out of the 4 million units built on an annual base.
The reason for this choice in car segments and the possible consequences for Western EU countries producing B and C segment volumes are discussed in this article.
Subscribers can view the following article: