In this issue of the Global Automotive Fairs Newsletter we want to introduce the Romania’s automotive industry to you. Romania’s automotive manufacturing sector is only a fraction of the size of those in other Central European economies, but Romania is now attracting increasing attention following significant new investments from Renault, and the success of Renault’s Dacia Logan. Renault has already invested more than €1bn (US$1.25bn) and plans to invest another €187m (US$240m) to increase production capacity as well as planning a €450 million R&D centre for Dacia Renault.1 The future of the former Daewoo plant remains uncertain, although Ford has expressed interest.
Production has grown more than threefold since 2002, with total vehicle output expected to reach 250,000 in 2007. The largest producer is Automobile Dacia, the Pitesti-based car manufacturer owned by Renault, followed by the Craiova plant formerly owned by Daewoo and currently in state ownership.

New car sales have grown as car ownership has risen from just over 5 percent of the population in 1990 to over 20 percent of the population in 2006: sales in all segments except light commercial vehicles have risen consistently since 2002. Mini-sized vehicles (B-segment) are by far the leading segment with an almost 60 percent market share: this segment continues to grow thanks both to domestic producers as well as competitive imports from the likes of Skoda and Toyota. Brands in this segment include the Dacia Logan, the Renault Clio and the Skoda Fabia. Dacia2 is the outstanding success of the Romanian market, doubling sales in just 2 years.
  Romania remains one of the most attractive EU locations for component producers thanks to low wages, flexible working hours, investment incentives, and geographic location. Leading global component manufacturers include Compa (brake cylinders), Faurecia (seat covers), Michelin (tires), Montupet (cylinder heads and aluminium parts), TRW (safety) and Valeo (wiring, heating and air-conditioning).

For more information on the Rumanian automotive industry, download the whole report written by KPMG International at www.kpmg.de.