Automotive sector: turnover up, 2018 looks positive

Entrepreneurs in the motor vehicle industry achieved nearly 4 percent more turnover in Q3 2017 than in the same quarter one year previously. Their outlook for 2018 is positive as well: turnover growth in the previous quarters is expected to continue. This is reported by Statistics Netherlands (CBS) in its quarterly monitor on the motor vehicle industry.

Turnover in this sector has seen an upward trend for nearly three years already, with the exception of a drop in Q4 2016 following a peak in turnover at the end of 2015.

Turnover developments motor vehicle industry
 Change
2008 I2
2008 II-2.8
2008 III-4.5
2008 IV-12.4
2009 I-18.4
2009 II-19
2009 III-16.7
2009 IV-8.5
2010 I1.7
2010 II8.4
2010 III11.3
2010 IV14.4
2011 I11.8
2011 II9.4
2011 III5.2
2011 IV1.7
2012 I-3.8
2012 II2.5
2012 III-11.5
2012 IV-10
2013 I-16.2
2013 II-16.1
2013 III-2.2
2013 IV13.8
2014 I1.3
2014 II-1.2
2014 III-0.5
2014 IV-6.6
2015 I1.5
2015 II5.5
2015 III11.1
2015 IV23.6
2016 I7.4
2016 II8
2016 III0.7
2016 IV-7.7
2017 I8.4
2017 II5
2017 III3.8

Trade in passenger cars boosts turnover

Turnover growth in Q3 2017 is mainly on account of importers of new passenger cars and the passenger vehicle industry. Turnover realised by importers was nearly 7 percent up year-on-year, while turnover in the passenger vehicle industry was more than 6 percent higher. Sales of new passenger cars were higher than in Q3 2016.

Motorcycle dealers, too, saw their turnover increase: by almost 4 percent. Turnover developments in the other industries were less positive. The largest turnover decline was recorded in the commercial vehicle industry at nearly 3 percent. After nine quarters of growth, car service firms also saw their turnover fall by almost 1 percent. Turnover realised by traders in automotive parts and components dropped by just under 2 percent.

Turnover developments motor vehicle industry, Q3 2017
 Change
Total motor vehicle industry3.8
Importers6.9
Passenger vehicle industry6.3
Motorcycle industry 3.8
Car service firms-0.9
Trade in automotive parts
and components
-1.7
Commercial vehicle industry-2.9

Positive outlook for 2018

Automotive entrepreneurs expect this year’s upward trend to continue in 2018; on balance, nearly 33 percent anticipate turnover growth.

They are also positive about staffing and future investments. On balance, over 6 percent of entrepreneurs expect to increase staff levels next year, while 5 percent are planning to make more investments. Compared to previous years, expectations for 2018 are high. The mood among entrepreneurs has improved significantly over the past five years.

Across all subsectors, turnover expectations for 2018 are positive. The outlook on staffing is positive as well in most subsectors. Staff reductions are only expected by traders in automotive parts and components. On future investments, however, subsectors are more divided. Entrepreneurs in the car dealing and repair sectors and in the motorcycle industry anticipate more investments, while car service firms and traders in automotive parts and components expect fewer investments.

Entrepreneurial expectations prior to year, 2013-2018
 TurnoverStaffingInvestments
2013 -15.3-26.9-24.6
2014 -6.7-16.1-22.6
2015 3.4-14.1-10.4
2016 17.5-4.12.9
2017 23.544.2
2018 32.96.45.4