INDUSTRY
AUTOMOTIVE
A vital contributor to the global economy, the automotive sector is expected to hit a market value of $8.5 trillion by 2030. However, it also confronts significant challenges, such as transitioning from internal combustion engines to eco-friendly alternatives. This shift requires continuous availability of working capital.
Industry factsheet
The automotive industry involves the design, development, manufacturing, marketing, and selling of motor vehicles, including cars, trucks, buses, motorcycles, etc. Key areas of activity include vehicle production, component and parts manufacturing, and aftermarket services.
EUROPE TURNOVER
€ 850 B
MAIN CURRENCY
€
DOMESTIC TRADE
40%
FOREIGN TRADE
60%
SUPPLY CHAIN TEARING
5+
EUROPE TURNOVER
MAIN CURRENCY
DOMESTIC TRADE
FOREIGN TRADE
SUPPLY CHAIN TEARING
€ 850 B
€
40%
60%
5+
Notable companies
Creditworthiness
Generally assessed as moderate to high, depending on the company’s market position, debt levels, and innovation capability. Large companies like Volkswagen and BMW typically hold high credit ratings (A or above), while smaller suppliers may have more variable ratings.
Geographic distribution, %
No Data Found
DSO
No Data Found
Working capital challenges
According to PWC automotive sector study, approximately €257 billion of cash was tied up in the balance sheets of the surveyed automotive companies (PWC 2021).
- High capital investment and inventory costs
- Long production cycles
- Managing global supply chains
- Fluctuating demand and market conditions
- Currency exchange risks
Invoice sizes
€1,000,000
Maximum
€ 50,000
Average
€ 5,000
Minimum
Turnover size distribution
Automotive companies, Europe, %
No Data Found
Economic outlook
The automotive industry is expected to grow steadily, driven by the shift towards electric vehicles (EVs) and autonomous driving technologies. Governments’ green policies and consumer demand for sustainable vehicles will spur investment and innovation in this sector. However, economic uncertainties and supply chain disruptions could pose challenges.
Top invoicing currencies
- EURO
- US Dollar
- Japanese Yen
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