CBI Centre For the Promotion of Imports from developing countries

1. CBICentre For the Promotion of Imports from developing countries Industrial Expro Seminar The Hague November 2013 By: Jan Oude Elferink JOE (Global)Automotive Support B.V.

2. EU MARKET TRENDS By: Jan Oude Elferink JOE (Global)Automotive Support B.V.

3. EUROPE ? By: Jan Oude Elferink JOE (Global)Automotive Support B.V.

9. Languages About 45 languagesanddialects are spoken in Europe 12 official languages in the EU Example Belgium: Dutch/Flemish (57%), French (33%), German (1.5%), Luxemburgeois (0.5%) Example Switzerland: Schwyzerdutsch (66%), French (33%), Italian (14,5%), Rheto-Romance (0.6%) Source:Ethnologue: A catalogue of more than 6.700 languages spoken in 228 countries; www.sil.org/ethnologue/

10. Go to: www.cbi.eu Click: Market Intelligence Platform Click: Select your market sector: Automotive Parts & Components Click: Trends

11. Trends (Source:CBI Market Trend Mapping for Automotive)

12. SOCIAL MARKET DRIVEN TRENDS AgingCreates special needslike comfort, eysightsupport Congestion in Someurban areasIncreasingdemandfor different solutions, f.e. smaller cars, increasingusage of bicycles IncomedisparityGrowing gap between the havesand the have-nots Understanding customer needs More varied options compatible withindividualandemergingsocialgroups

13. SOCIAL MARKET DRIVEN TRENDS 2 Owning a carbecomesless important Will lead to new marketing concepts Focus on sustainableand environmentally-friendly products Will lead toothermaterial(s) Stagnating sales new carsShorter product cycles, more variedandcustomisedoffering Global growingpopulation Put pressure on the food market andwill drive the demandforagriculturalmachinery

14. TECHNOLOGICAL MARKET DRIVEN TRENDS IncreasinginnovationGrowing expertise in emergingeconomies New automotiveplayers (f.e. China) New non-automotiveplayers (f.e.Google, Apple) In Eurpoeshortage of skilledpeoplebecause the industry is becominglessattractivetotalentedpeople Pressure on carbon- free vehiclesHugeinvestments in different technologies

15. TECHNOLOGICAL MARKET DRIVEN TRENDS 2 Increasing IT integrationCarreliabilitywillincreaseleadingtooldercarfleetsthusincreaseddemandforreplacementparts Increasingconnectivity Incorporation ITC continuestoitensify On-going change in productsproduced (shorter product lifecycles). Consumersdemandsthoseproductsthatsuittheir lifestyle

16. TECHNOLOGICAL MARKET DRIVEN TRENDS 3 Innovativelightweightand sustainablematerialsHybridmaterials, composites as biodegrablematerials (forinteriorparts)willbeincreasingly in demand Growingdemandfor aluminium, plastics andnanomaterials

17. ECONOMIC MARKET DRIVEN TRENDS New car sales stagnatesAverageagecar park increases=more opportunities in the Aftermarket RelocationProduction to East and Central Continuingcostpressure Europe Shut down of Western Consequencesfor the vendor base? plants Outsource responsibility of 1st. Tier suppliersIncreasingsupplier power and more growinterdependency

18. ECONOMIC MARKET DRIVEN TRENDS 2 Fastgrowthemerging New marketsfor DC exporters countries Automotive market More competitionfor European continuesmovingtovendor base emergingAsian economies Chinese & Indian Car Makers willattempt entering the European market Throatcuttingbusiness,survival of the strongest! For opportunities/consideration/actions visit:Download full document

19. Sector Automotive (2) Production of automotive parts in Europe, in € million.

20. Figure 5 Share of import of automotive parts by EU27+EFTA countries, 2011 Figure 6 EU+EFTA most growth of import of automotive parts, 2007-2011, in % Sector Automotive (3) Data source: Eurostat Data source: Eurostat

21. Sector Automotive (4) Competitiveness for Automotive Parts and Components Buyer Power is and will remain strong Buyer power is very strong and centered around OEMs and 1st-Tier suppliers. These two actors are expected to share most of the buying power in the years to come and as their price pressures increase, they will continue to transfer them to their lower-tier suppliers. Lower-Tier Suppliers, Wholesalers and Retailer will present an interesting opportunity for the DC exporters, as will the emerging economies in East and Central Europe. For more details: See module Competition

22. 2-Wheelers Bicycles Mopeds (engines 49 cc) Motorbikes (engines 125 – 1250 cc)

23. Bicyles City bicycle Hybride incl. tracking bike Hybride incl. tracking bike Child bicycle Electricalbicycle Other (incl. racingbicycles, MTB/ATB andfolding bikes

24. SOCIAL MARKET DRIVEN TRENDS Aging People want tostay fit and go forbiking Congestion in Someurban areasIncreasingusage of bicycles s Understanding customer needs More varied options compatible withindividualandemergingsocialgroups Focus on sustainable and environmentally- friendly products Will lead to other material(s)

25. TECHNOLOGICAL MARKET DRIVEN TRENDS 3 Innovativelightweightand sustainablematerialsGrowing demand for aluminium, plastics and nanomaterials

26. Major EU Bicycle producers (>500K) X 1000 201020092008 Italy 2.489 2.590 2.380 Germany 2.224 2.250 2.370 Netherlans 971 1.200 1.129 Poland 958 900 1.110 Portugal 850 850 1.100 France 845 733 1.057 Hungary 533 500 600 Romania 500 450 500 CzechRepublic 435 450 600 Source: Bike Europe Market Reports

27. Ownership Total/ One bicycle per head of population In millionsTotalPer head The Netherlands 18,0 0,9 Denmark 4,4 1,2 Germany 66,0 1,3 Norway 3,0 1,4 Sweden 6,0 1,5 Finland 3,3 1,6 Switzerland 3,8 1,9 Belgium 5,2 2,0 Italy 26,5 2,2 Austria 3,3 2,5

28. Ownership Total/ One bicycle per head of population In millionsTotalPer head United Kingdom23,0 2,5 France 20,0 2,9 Hungary 3,5 3,1 Romania 5,0 4,4 Spain 7,0 5,7 Source: Bike Europe Market Reports

29. Registrations and deliveries PTW’s (Powered Two Wheelers) in the EU: monthly evolution 2012 vs. 2011

30. Production of PTWs (Powered two wheelers)in Europe(source:acem/eu)

31. Production of PTWs (Powered two wheelers)in Europe(source:acem/eu)

32. Circulating Park PTW’s