ANFIA - Italian Association of the Automotive Industry Algeri, 10 th January 2019
Agenda Presentation of ANFIA and the Italian automotive sector Business relations between Italy and the North African countries Collaboration and investment opportunities in the automotive sector 2
Presentation of ANFIA and the Italian automotive sector
Who we are With 300 associate members, has been one of the leading Italian Trade Associations, members of CONFINDUSTRIA, for more than 100 years. Structure and represented sectors: 3 product groups divided in different sections COMPONENTS CAR COACHBUILDERS AND DESIGNERS COACHBUILDERS AND MANUFACTURERS MOTOR VEHICLES DESIGN AND PRODUCT DEVELOPMENT ENGINEERING Association activities Public Affairs Technical and regulatory affairs Studies and Statistics Internazionalization Training Vision: creating value for automotive world 4
Automotive industry in Italy 5,700 companies in the production industry (motor vehicles, components, tyres) 100.4 Bn turnover of production industry (6% of national GDP) 1.2 million employees (both direct and indirect) 259,000 of whom in the production industry (7.1% of the manufacturing sector in Italy) 1 private investor in R&D, with 1.8 Bn yearly investments, 12.7% of R&D spending of manufacturing sector in Italy 45 Bn export 74.4 Bn fiscal burden on motorization, 16% of national fiscal revenues; 4.3% of national GDP 5
Focus on Components industry in Italy Figures and facts A unique and complete supply chain ( from concept to car ) Turnover: 46.5 bn in 2017 Export: 21.2 bn in 2017 Trade balance: +5.7 bn in 2017 N of companies: 2,200 Design, Style and engineering services Modules and systems Lighting and signaling devices Electrical / electronic components Components for bodyworks and interiors Engine and transmission components Steering, suspension and braking system components 75% of a car today is made by parts and components (roughly 30,000, externally supplied to Car Manufacturers) Italian technological excellencies CNG (Compressed Natural Gas) and LPG (Liquefied Petroleum Gas) systems Powertrain technologies Connected and autonomous driving technologies Engineering, Design & Styling Source: ANFIA; Italian Automotive Report 2018 Ed. 6
OEM s Italian Plants Grugliasco Modena Torino- Mirafiori Sant Agata Bolognese Pontedera Sevel Cassino Melfi Pomigliano d Arco 7
ITALY - Domestic production and export (units) Production Export 2016 2017 % Chg Jan/Sep % Chg Jan/Sep % on 17/16 2017 2018 18/17 2018 prod. Cars 712.971 742.642 4,2 565.874 529.165-6,5 302.560 57% Lcv 344.358 332.112-3,6 241.704 247.817 2,5 197.545 80% Light Vehicles 1.057.329 1.074.754 1,6 807.578 776.982-3,8 500.105 64% Trucks and Buses 45.976 67.456 46,7 50.259 48.501-3,5 40.316 83% Total 1.103.305 1.142.210 3,5 857.837 825.483-3,8 540.421 65% Source: car makers 8
ITALY - Vehicles sales (units) Processed by ANFIA on data from the Italian Department of Transport 2016 2017 % Chg. 2018 % Chg. 17/16 18/17 Motor Vehicles 2.052.516 2.192.471 6,8 2.122.581-3,2 Cars 1.826.131 1.971.590 8,0 1.910.415-3,1 Lcv 200.273 193.178-3,5 182.000-5,8 Trucks 23.321 24.350 4,4 25.582 5,1 Buses 2.791 3.353 20,1 4.584 36,7 Trailers and Semitrailers 31.690 33.069 4,4 31.697-4,1 Light trailers 16.883 16.958 0,4 15.886-6,3 Heavy trailers 1382 1.576 14,0 1.455-7,7 Heavy semitrailers 13.425 14.535 8,3 14.356-1,2 Motor-cycles 217.162 228.318 5,1 240.388 5,3 Scooter 117.917 121.954 3,4 126.474 3,7 Motrbikes 75.996 82.490 8,5 92.991 12,7 Motor-cycles under 50cc 23.249 23.874 2,7 20.923-12,4 9
Business relations between Italy and the North African countries
Italy vs North Africa: Motor Vehicles Trade new and used motor vehicles UNITS Import Export Balance 2016 22691 13548-9143 2017 34371 11173-23198 VALUE IN MILLION EURO Import Export Balance 2016 199 320 121 2017 311 250-61 Exports by country of destination, million euro Export 2016 Balance 2016 Export 2017 Balance 2017 Morocco 49-150 84-227 Tunisia 59 59 79 78 Algeria 97 97 32 32 Egypt 77 77 28 28 Libia 19 19 15 15 Lebanon 8 8 6 6 Giordania 10 10 6 6 TOTAL NORTH AFRICA 320 121 250-61 ANFIA on ISTAT data 11
Italy vs North Africa: parts and components of vehicles Trade parts and components for motor vehicles VALUE IN MILLION EURO Import Export Balance 2016 210 223 13 2017 238 210-28 1 H 2018 172 113-59 Exports by country of destination, million euro Export 2017 Balance 2017 Export 1H 2018 Balance 1H 2018 Tunisia 63-96 31-55 Algeria 62 62 37 37 Morocco 34-27 18-62 Egypt 33 16 16 10 Lebanon 9 9 6 6 Libia 5 5 3 3 Giordania 4 4 1 1 Total North Africa 210-28 113-59 ANFIA on ISTAT data 12
Production of motor vehicles in Algeria, Egypt, Morocco Fitch Solutions s projections Morocco is becoming an ever more important global producer of vehicles. In 2017 EU imported from Morocco about 241,000 passenger car (+22% on 2016) for a value of 1,907 million (+23% on 2016). 13
Key View In 2018, vehicle production is expected to increase in Algeria, Morocco and Egypt. In 2018, vehicle sales are expected to decline in Egypt, Lebanon, Tunisia and increase in Algeria and Morocco. North Africa will be the key beneficiary of investment in autos manufacturing in the MENA region as the US withdrawal from the nuclear agreement with Iran forces foreign companies to rethink their strategy in the country. The re-imposition of the Us sanctions on Iran will have both a detrimental impact on the Iranian automotive sector and at the same time it will be beneficial for other vehicle producing countries in the region, namely Egypt, Morocco and Algeria. 14
Collaboration and investment opportunities in the automotive sector
Possible winning approaches to North African countries Strategy Main advantages Interest level Serving world carmakers present in North Africa countries Setting up an R&D Center - OEM presence hugely grown in the last years, and even - A supply chain made of multinational and local companies constantly improving in efficiency and skills - Good infrastructure mainly regarding to the port system - Interesting incentive and grants schemes for investments and hiring people - Competitive personell costs (blue and white collars) - Availability of skilled manpower at competitive costs (technicians, engineers, etc) - Increasing people English spoken - Incentives for R&D investments in some countries HIGH (depending one specific coutries) STILL LOW 16
ANFIA concrete activities in North Africa Two missions in October 2014 and in February 2016 in cooperation with AMICA (local Automotive Association) and Invest in Morocco Agency (12 companies attended) Visit of the Industrial Parks in Kenitra and Tangier Contacts with PSA and Renault Purchasing Departments Some Italian companies are already located in the Tangier Automotive City (Alfagomma, Magneti Marelli, Sigit, Sogefi Group), in Kenitra (MTA) and in the Casablanca premises (Proma Group). ANFIA and TAA (Tunisia Automotive Association) MoU signed in Turin in June 2016 Potential Areas of Cooperation Training Activities on specific issues (Target: local suppliers) Business Development among Italian and Tunisian companies (technical, industrial or commercial joint ventures) Exchange of Statistical Data between ANFIA and TAA Italian companies already located: Clerprem, Dainese, Sparco Current relationships with Algerian and Egiptian Consulates in Italy in order to promote investment and business opportunities for italian comnpanies in the two countries 17
Thank you ANFIA Italian Association of the Automotive Industry Corso Galileo Ferraris, 61 10128 Torino Tel.: +39 011 55 46 505 Fax: +39 011 54 59 86 Viale Pasteur, 10-00144 Roma tel. +39 06 54221493 fax +39 06 54221418 Mail: anfia@anfia.it web site: www.anfia.it