Spain is the 14th global economy with over $ 1.411 trillion GDP (purchasing power parity) in 2011. The country joined the European Community in 1986 and is in Euro currency area since 2002. The per capita income of $ 30.600 (2011) is still below EU average ($34.000).
The 2008 financial crisis interrupted 15 years of above average GDP growth and started a period of economic difficulties not yet ended. The GDP felt by 3.7% in 2009, and 0.1% in 2010. In 2011 was slightly positive (+0.8%), while in 2012 it is expected negative again. Level of unemployment boosted at 20.8 and National Budget deficit in 2011 was 6.5% of GDP, with a Public Debt growing at 68.2.
Automotive Industry Overview
Although the domestic Brand – Seat - was incorporated in Volkswagen Group, automotive industry has been used by Spain as locomotive of economic development. Car production achieved a record volume in the 2000, surpassing 3 millions vehicles in a year, when the country was the base to export in Europe for many OEMs (Volkswagen, Renault, PSA, Nissan, Honda, Ford, and Opel). In recent years production felt and in 2011 was 2.352.000 the 2nd in Europe and the world's 9th.
Spanish domestic light passenger vehicle industry in 2011 registered 912.000 units, the 15th globally.
November 2013 reported again a double digit increase for the Spanish car market with sales corroborated by government incentives and strong rebates offered by top players. Low-cost brand Dacia placed Sandero in the podium and advanced in top ten.
Subsidies boosted Spanish car sales for the second month running in October 2013 and sales jumped up by 34.7%, moving the cumulated performance in positive territory first time since four years. Competition is leaded by strong Volkswagen and Renault performance
September car market boomed 28% in Spain, driven by strong sales for Volkswagen, Peugeot and Ford and following a long -too long - hard time. Spanish market posted a robust 28.9% increase, the best year-on year performance in 8 years.
In August 2013, Spanish car market dropped 18.4% breaking a recovery trend started in last April, with year-to-date sales down 3.6%. Dacia entered the Top 10 brands for first time ever thanks to Sandero sales booming as bestselling car.
Spanish car market was finally reporting a robust recovery, as in July sales increased 15.1% from last year and the whole year was down only 2.1%. Volkswagen posted a wonderful performance jumping on top of the rank.
In June 2013, the car market in Spain confirmed the recent stability and was flat from the previous year. However first half sales were still down. Renault jumped in first position, while Fiat and Dacia significantly gained share of market.
Following the positive April performance, in May the Spanish car market had lost only 2.5% confirming the stabilization of sales trend. A strong battle was played this month in the market, with Opel final winner and able to advance at leadership.
Seat boomed sales in April keeping back the market leadership lost in early 2012. It was too early to correlate this fact with Mr. Muir replacement as company CEO, but not to boost Spanish car sales by 10%, second positive month out of last fifteen.
The dramatic momentum lived by the Spanish car sector had no rest in March, when sales dropped 13.9% from the already low volume a year ago. The first quarter was archived with a 11.4% fall. In March Corsa pushed Opel on top of the market.
The Spanish car market in February was falling again in spite of scrap inventive program, pushed down by really high unemployment index and credit crunch. Pushed by 208 and 308 demand, Peugeot advanced on top of the market.
In January the Spanish car market posted a 9.6% drop. However the recent government announcement for car incentive plan (PIVE) extension generate quite optimism in the sector. Seat recovered the market leadership outpacing Volkswagen.
December was again awful for the car market in Spain falling 22.8% from last year. The 2012 ended with the lowest volume since 1985, losing 13.4% from 2011 and 67% from the 2006 record. Last month, Peugeot surged in first position while Dacia Sandero was on the podium.
The Spanish car market posted in November one of the worst month of the entire 2012, dropping 20.2% from the previous year. Cumulative sales at November were down 12.5%. Climbing 3 points of share, Citroen was the market leader.
In spite of scrap incentive scheme introduced by the government on October 16th, the car market in Spain dropped 21.5% with 44.943 sales. Year-to-date sales were 601.000, down 11.7% from last year. Thanks to new Clio launch, Renault took the leadership.