Spanish Car Exporters Look Beyond European Union

MADRID – Auto exports from Spain totaled 1.85 million vehicles through the first nine months of 2015, up 8.4% from prior year, although the 214,337 exports in September were down 8.4% from a year earlier, ANFAC, the main Spanish association of automakers.

The bulk of the shipments for the year’s first nine months went to France, Germany, Italy and the U.K. But the Spanish auto industry also is seeking new export markets outside the European Union to help offset cyclical declines in the domestic market.

Spanish automakers exported 164,946 cars outside the EU in 2009, but in 2015 that figure reached 455,958, a 176.5% increase. Exports to markets outside the 28-country political-economic union totaled  341,315 cars from January through September.

Spanish-built cars are sold in 176 markets worldwide, with Turkey, Algeria, the U.S., Mexico and South Korea among the main destinations. The Volkswagen Polo is a particular favorite in Turkey, while 11,000 Renault Captur units were shipped to China in 2015.

As with other products, car exports fluctuate depending upon the euro exchange rate against other currencies. Also, trade agreements such as the one between the EU and Canada, which Belgium is blocking, have an important effect on car prices.

The loss of the U.K. pound against the euro resulting from the U.K.’s pending withdrawal from the EU, could curtail car exports to the U.K., an important market for Spain’s auto industry by making Spanish-built cars more expensive.

According to ANFAC, 2.2 million vehicles were assembled in Spain during the first nine months of 2016, a 5.3% year-over-year decline, with 18.5% of production exported to markets outside the EU. Industry officials still believe they will reach their target of 2.8 million builds in 2016.