Automotive and motorcycle industry experiences largest decline in turnover in 25 years

The automotive and motorcycle sector is facing a record decline in turnover. In the second quarter, importers, dealers, garages, dealers and spare parts companies saw their turnover fall by more than 25 percent, according to Statistics Netherlands.

It’s the largest shrinkage in over 25 years. Car sales have been hit particularly hard: motorcycle dealers saw their turnover fall the least, at 5.7 percent.

Importers of new cars get the hardest blows. Dealers saw sales plummet by more than 40 percent. As a result of corona, car factories were closed and consumers and leasing companies bought fewer new cars. Due to the closure of many car factories, the trade in car parts also fell.

A half fewer passenger cars were also sold. Turnover in this sector fell by 26 percent.

Companies that trade in and repair passenger cars still realised nearly 4 percent turnover growth in the first quarter, but fell by more than 21 percent in the second quarter

Minor bleak

Entrepreneurs in the automotive and motorcycle industry were particularly gloomy in the second quarter: their confidence dropped to minus 46.9. For the third quarter, however, they are much less gloomy with a confidence rating of minus 9. This is also better than the minus 19.3 for industry as a whole. 3.2 percent of automotive entrepreneurs expect turnover growth in the third quarter.

Also for the staff they see the future a little brighter than in the recent past. Three months ago, 38 percent of companies still thought that they needed less personnel, now that’s 11 percent.