Automotive supply chain, components and exports also down

Automotive supply chain, components and exports also down
The automotive world is inevitably going through a critical phase, an alarm signal confirmed by the latest data provided by Istat. 2020 sees a significant decline in exports and, despite the fact that there are many sectors with negative trends, the automobile sector suffers particularly among these.

The data show how the two fundamental sectors of the automotive supply chain are in clear difficulty . In addition to car sales, which fell by 24% in the first eight months (compared to the data of a year ago), the curve of the components sector itself, which recorded a -26% from January to July, also worsened. 2020. Exports are not going better, in particular towards the same member countries of the European Union.

Inevitably fundamental are the initiatives in support of the automotive supply chain launched by the financial company of the Cassa Depositi e Prestiti (Sace) group, which from the beginning of 2020 to September has mobilized resources for a good 7.5 billion euros. It is no coincidence that Sace continues and consolidates its commitment to support companies in the sector, with new initiatives and operations dedicated to the production chain.

Export collapses

A strong alarm bell for the car sector which, even before the start of the Covid 19 pandemic, recorded data in decisive decline. If we analyze the numbers, including those of exports, it is clear that from January to August there was a -25.5% compared to 2019. However, outside the single market, the decline was more contained, but equally heavy, with a -22.3% in the same period.

The United States of America (the first destination market for Italian vehicles), although to a lesser extent, maintained a higher than average demand; in fact, a -17.4% was recorded. Exports to Japan and Turkey are improving. In fact, exports to the two nations increased by 7.5% and 0.3% respectively.

Despite the recovery in August, with + 7.9%, Sace's forecasts seem to indicate a 10.2% reduction in exports for the transport sector by the end of the year.

Good hopes for 2021

According to the same company, 2021 will see decisive signs of recovery, with + 11.9%. Therefore, a trend reversal is expected resulting from the contribution of demand that inevitably remained unexpressed in 2020 due to Covid, but also from the same inevitably central role now assumed by the private car for travel. It is no coincidence that the pandemic will lead to a greater preference of one's car over public transport.

Sace and the automotive

However, the lack of support measures necessary for the supply chain is paradoxical automotive. A problem faced by Sace jointly with Anfia in order to reach solutions that can be decisive for the recovery of the sector. In a decidedly difficult time for the Italian car industry, financial aid is of particular importance. Let us therefore not forget that the joint-stock company of the Italian group Cassa Depositi e Prestiti plays a fundamental role; the latter will be able to issue guarantees on loans in favor of projects that fall under the Green New Deal and, in particular, those projects that will promote the development of sustainable mobility and that will facilitate the transition to an economy with a low environmental impact.

It should be reiterated that Sace's commitment lies in accompanying and supporting Italian companies both in the scouting phase for new business opportunities abroad, and in offering adequate financial support in this moment of strong change; in which companies are called upon to invest more in technology, innovation and sustainability.

If the automotive sector has to face critical moments, we cannot say the same thing regarding the Italian two-wheeler supply chain. In fact, the pandemic currently underway has inevitably led to a growing preference for the use of forms of micro-mobility and bicycles, especially on short journeys. It is no coincidence that the high demand for bikes throughout 2020 is seeing record sales numbers, so much so that it leads to a lack of supply and components.

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