Turnover increase in the car and motorcycle sector almost 16 percent in 2023.
The automotive and motorcycle industry has shown remarkable sales growth of 2023 percent in 15,7, despite market challenges and shifts within the sector. This increase is particularly striking within the trade and repair of passenger cars and among importers, where turnover increased by 19,6 percent and 16,2 percent respectively. These figures, released by Statistics Netherlands (CBS), underline the resilience of the industry in a period of economic fluctuations and technological changes.
Sales growth in early 2023 was driven by catching up on backlogged orders, a phenomenon experts call "backorders." In addition, increasing sales of electric vehicles played a crucial role, partly due to rising prices of cars and parts. However, growth slowed towards the end of the year, mainly due to a stagnation in the growth of electric vehicles and a leveling off of price increases.
The performance of the heavy commercial vehicle and specialized repair companies submarkets is also striking, with turnover increases of 13,8 percent and 11,3 percent. Despite this, motorcycle trading and repair showed a 6 percent decline in sales, indicating a diversity of performance within the sector.
At the beginning of 2023, there were still high turnover increases, mainly due to the elimination of outstanding orders and orders, so-called backorders.
However, business confidence within the car and motorcycle sector appears to be less positive. At the start of the first quarter of 2024, confidence stood at -21,5, which is significantly lower than the general business confidence across all industries of -7,7. This pessimism among entrepreneurs in the industry reflects ongoing challenges, including a tense labor market. More than 50 percent of companies reported labor shortages at the start of 2024, a slight increase from the fourth quarter of 2023.
The labor market in this sector remains tense, despite a slight decrease in the number of vacancies at the end of 2023. With 8,2 thousand vacancies in the fourth quarter compared to 8,9 thousand in the third quarter, finding enough qualified personnel remains a challenge.
These developments within the automotive and motorcycle industry point to a dynamic sector that adapts to changing market conditions and technological innovations. The growth of the sector, despite declining sales growth towards the end of the year, shows the potential of the industry to continue to evolve in an ever-changing economic and technological environment.
Source: CBS
