How is the situation in the automobile market now that we see the covid in the rear-view mirror?
We had started 2022 slightly better than 2021, but March has just caused a 30% bump in sales compared to the same month last year. The conclusion is that we are very far from the pre-covid years, with the exception of 2008, with the crisis.
The virus is gone but war and inflation are coming. Do they back down when buying a new car?
These factors generate an uncertainty that makes the consumer think twice before making a purchase as important as a car. And as if that were not enough, the semiconductor crisis broke out.
What solution is there to overcome the lack of chips? In Galicia, the Zona Franca projected a factory in Vigo to supply Stellantis. But some experts say it could end up being a more expensive and less effective solution…
The problem is that a chip factory cannot be improvised. They take two to three years to build. The European Commission has already made the decision to open factories to double production, but it will take this time. What vehicle manufacturers should do is integrate semiconductor manufacturing so as not to depend on component suppliers.
“Euro 6 thermal engines are clean. Europe says so and they should coexist with electric ones, that is what the transition is based on”
So, are fewer cars made because of lower demand or because microchips are missing?
Both things influence but the demand exceeds the offer. We must not forget that we are facing delivery times of 6 to 12 months.
This situation boosts the second-hand market…
It is true that those who want immediate mobility go to the second-hand market. But it is no less so than the second-hand vehicle must be manufactured, so to speak. I mean that many of them, especially the ‘young’ ones, come from renting, and these companies cannot renew their fleets because there are no new cars for them either, hence not many used ones come onto the market. This makes, above all, that people keep their cars.
And the age of the fleet is further accentuated: an average of 13.1 years in Spain and 13.7 in Galicia, the second oldest behind Castilla y León.
That’s how it is. Unfortunately the park is getting older every day, and in Galicia, older. We are not renewing it because in Spain we barely registered 850,000 units a year, as happened in 2021.
In cities like Lugo, the age of the park meant that low-emission zones were ruled out…
Is a reality. And the incentive plans do not bear fruit, since they are focused on the plug-in electric vehicle, such as the Moves.
Are there more incentives?
Yes. Unfortunately, the Government focuses exclusively on electricity. And not even the second-hand electric. The consequence is that we do not encourage the user and it continues to circulate in cars over 15 years old. The aid should also be for clean combustion engines, which are Euro 6. They are thermal but low-polluting vehicles, all of them manufactured from 2018.
Have the messages demonizing diesel launched by the Government hurt?
That famous phrase by Minister Ribera that ‘diesel’s days are numbered’ did a lot of damage. Instead of this, she should tell the citizen to buy what he wants, always complying with environmental requirements, and thus this transition would be motivated.
“The uncertainty due to covid, inflation and war makes people postpone buying cars”
Is there still a lack of awareness about the purchase of electrics?
The price is falling more and more and the autonomy is increasing, although it is true that the charging infrastructure is being rolled out slowly.
In Galicia, with so much dispersion, it is practically impossible to have a loading zone in each rural council.
The Galician orography supposes an added difficulty, but the deployment is going to take place. Yes, it is true that it may take longer.
Can the high price of fuel be an incentive to opt for electric?
A citizen may not do that financial analysis of cost per kilometer. But the renting companies do and they may opt for the electric vehicle, although it is also unknown what the cost of electricity will be in the future.
In Galicia, the ‘racing’ culture prevails among many young people, derived from rallies, which rejects electric SUVs for sports cars and GTIs with many years of running in their thermal engines. Is this trend noticeable in the market or is it residual?
In the future there will be a mix of electric and thermal. Even in the most advanced countries in electromobility such as Norway, this is the case. What is clear is that the competition needs a type of vehicle that at the moment cannot be achieved with electricity. Not the same sensations, not even remotely.
Let’s continue with the SUVs. They are the undisputed kings of the market, with a 55.1% share in 2021. Are they here to stay?
The medium SUV, such as Nissan Qashqai or Renault Kadjar, is the best-selling. There has been a change in consumer habits in terms of tastes and it is a trend that seems unstoppable.
Despite the poor figures, physical dealers are the ones that best resist online sales. Does the idea influence that ‘a car, like a house, must be seen’?
It is true that the customer still needs to see and touch a car, but the internet has changed the buying process. The buyer comes with the decision almost made from home.
Cupra is opening stores in the golden miles, like in Santiago. Is it an idea to get closer to citizens outside the polygons?
Cupra is precisely testing new distribution models, focusing on large urban centers and greater contact with the customer.