Myths debunked. What power does Romania actually have on the car production market?

2023-06-12 15:30:00

In order to understand how competitive Romania is on the car manufacturing market, we took several indicators and represented them in the European context. The first conclusion is that Romania has taken major steps in the development of the automotive industry, and at this moment it is registering exponential growth for several important indicators.

Car factory from CraiovaPhoto: Inquam Photos / Adel Al-Haddad

Although Romania is the last country in the EU in the number of cars/1,000 inhabitants, it now has the highest growth in the last decade. In just 10 years, the number of Romanians who own cars has doubled, while the European average growth in the last 10 years is discrete.

Trained workforce. Romania, competitive in the number of engineers and scientists

The automotive industry is, as we have shown, one of the most important and dynamic sectors of the global economy. It is also a sector that continues to evolve rapidly.

From electric and hybrid vehicles to self-driving systems, advances in automotive technology are transforming the way we think regarding transportation. As new technologies emerge and consumer preferences change, the need for skilled scientists and engineers for the automotive industry becomes increasingly important.

Another key area where the automotive industry needs highly trained people is that of the composition of materials used on the production line. Lightweight alloys, composites and polymers are essential for reducing weight and improving performance in modern vehicles.

In this chapter, Romania is not at all bad. It ranks 8th in the EU in the number of engineers and scientists.

Innovation

According to the European Innovation Scoreboard, Romania is an emerging innovator. It’s a label that sounds better than it is. Romania is still on the last places in the European Union in terms of innovation. We don’t even keep pace, we even take steps backwards. According to the study, Romania’s performance decreased in 2016, 2017, 2018 and 2022. In 2022, Romania recorded the same level of performance in the innovation sector as in 2015.

Looked at in detail, the biggest drop from 2022 was with spending on innovation/employee and in the SME sector considered to be innovative. Here, the explanation can lie in the economic uncertainty, once morest the background of which many companies decided to cut their budgets.

Infrastructure

The quality of a country’s infrastructure, which includes transport networks, energy supply and telecommunications, can affect the efficiency and competitiveness of the automotive manufacturing industry. A well-developed infrastructure can help reduce transport costs, improve logistics and attract new investment. The graph below shows the number of kilometers of highways in relation to the surface of the country.

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