López Frade predicts that the registration market in Spain will close this year at 2011 levels
Juan Lopez Frade, chairman of Suzuki Ibérica, represents a complicated near future for the automotive sector that is swept along by the general situation of the economy. As a starting point, it looks at the current moment in the industry, which is mired in a vicious circle due to the “shortage of semiconductors and global supply chain constraints that have drastically reduced vehicle production. A situation that
is not expected to improve in the short term“, there is.
Speaking at the traditional end-of-year meeting with the media, López Frade lamented that this situation has led brands to “reduce traditional incentives, meaning buyers are spending more than ever to buy a car.”
This situation leads, in the words of the president of Suzuki Ibérica, to “consumers facing a mobility affordability crisis”. A situation that is especially exacerbated by the rise in inflation, the rise in energy costs and the rise in interest rates, a situation that “is not expected to improve in the short term,” he says.
This forecast is based on López Frade on the objective data coming out that has led to consumer confidence falling to an all-time low with a 42.6% drop between October 2021 and October this year.
The situation means that “brands have prices that are not in the market and therefore our customers will keep their current car.” This entails a danger for López Frade, namely losing direct contact with our customers.
Despite everything, all manufacturers in the sector had a moderately profitable 2021 for the past two years, and so far in 2022. However, Suzuki’s president warns: “the tide is about to turn!”. A hunch that can be appreciated by looking at the financial indicators in Spain, “which strongly point to an economic recession and which is really worrying, because customer demand can be squeezed at the very point where supply returns”, points out .
Regarding Suzuki’s full-year results, López Frade strictly points out that sales have fallen compared to 2021 “because we haven’t had any cars”, which is why the final forecast for 2022 is 4,500 registrations, compared to 5,484 the previous year .
López Frade recalls that during the meeting with the media last year, he already predicted that the world market for registrations of all brands in Spain would reach 800,000 units, a figure that is on track to be fulfilled. These records are the same as those set in 2011, when we were in the middle of an economic crisis.
Looking ahead to 2023, it calculates that the market will grow by 7.5% to 860,000 vehicles sold in Spain. For its part, Suzuki is confident that it will register 6,500 units, which is the total number of vehicles pledged from Japan, representing a 44.4% increase in sales.
Source: La Verdad
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
