Daniel Anghel, PwC: “Romania’s automotive market has very good prospects, and forecasts for 2027 indicate increases for both sales and production”

“The automotive sector is extremely important, with 13 percent of the GDP and a third of the exports of the local economy meaning a very well represented industry, with a total of over 260,000 employees.

The turnover of the industry increased to 33 billion euros in 2023, with Dacia and Ford representing 25 percent of the total, and the rest are the large manufacturers of components.

The data for the third quarter look good for Romania, both from the perspective of sales and from the perspective of vehicle production. If we look at the forecast, Romania will have a good 2024 in terms of sales, with an increase of about 8 percent.

Regarding the production of vehicles, we also see an upward trend and we are getting closer to Poland, a good thing considering that in other industries Poland is very well represented.

The Romanian automotive market certainly has very good prospects, and forecasts for 2027 indicate increases for both sales and production,” Daniel Anghel, Country Managing Partner, PwC Romania said during Automotive Forum 2024 organized by Automotive Today and The Diplomat-Bucharest.

“If we look at global trends, we notice that all manufacturers and suppliers of components are affected by the rapid electrification of the market, and costs are increasing from this perspective. We obviously also see a decrease in demand in certain areas, especially against the background of the reduction of the facilities granted by the state for the purchase of electric vehicles.

We must not forget that the car market in Germany contracted, and this affects the entire economy of the European Union. Germany is the second largest investor in Romania, after the Netherlands.

Regarding the area of ​​foreign investors, the Romanian market is seen extremely well in terms of growth prospects, and this gives us cautious optimism, because we expect 2025 to bring a new series of challenges.

Total sales of vehicles made in China increased in Europe from a share of 3% in 2020 to 22% in 2023. New customs tariffs for cars made in China have already been introduced, and these measures will encourage Chinese manufacturers to come to Europe and to produce vehicles in collaboration with European manufacturers. We estimate that Chinese manufacturers will produce at least 700,000 cars in Europe in 2030.

We are trying to find solutions to the turnover tax problem, this tax has nothing to do with Romania’s accession to the OECD. As president of the Council of Foreign Investors, the priority agenda for 2025 is the elimination of this tax. We sent a letter to the President and the Government for the elimination of this turnover tax. From our point of view, this is the most toxic tax that Romania could impose on the business environment.”