Automotive Industry Trends

Industrial production trend in the automotive sector

In June 2024, the industrial production index in Italy recorded a 2.6% decline compared to June 2023, but showed a slight increase of 0.5% compared to May 2024. However, when analyzing only the automotive sector, the production decline is much more pronounced: -25.0% compared to the same month of the previous year. This figure is particularly significant, considering that compared to May 2024, there is a 2.2% growth. In the first six months of 2024, the entire industrial sector experienced a 3.2% decline. The situation is even more critical for the automotive sector, which recorded an overall decline of 16.3% in the same period.

Changes in automotive sector segments

A more detailed analysis reveals that the individual segments of the automotive sector show different performances:

• Motor vehicle production (ATECO code 29.1): the index fell by 36.0% in June 2024 and by 19.6% in the first half of 2024. This segment recorded the most drastic decline.
• Bodies for motor vehicles, trailers, and semi-trailers (ATECO code 29.2): shows a slight increase of 0.2% in June, with a significant increase of 13.9% in the cumulative first six months.
• Parts and accessories for motor vehicles and their engines (ATECO code 29.3): marks a 15.6% decline in June and an 18.0% decline in the cumulative period.

Revenue of the Italian industry

According to ISTAT data published on August 28, 2024, the overall revenue of the Italian industry (excluding construction) decreased by 3.3% in the cumulative first six months of 2024. In June 2024, the decline was even more pronounced, with a 6.7% decrease. In the domestic market, revenue fell by 8.7%, while in the foreign market, there was a 2.7% decline.

Revenue of the automotive sector

The automotive sector showed a negative revenue variation of 18.8% in June 2024 compared to the same month of the previous year. This decline is attributable to both the domestic market, which saw a 20.2% contraction, and the foreign market, with a 17.4% decrease. Considering the cumulative 2024, the overall revenue of the automotive sector fell by 9.1%, with a 13.7% reduction for the foreign market and a 4.5% reduction for the domestic market.

Revenue analysis

From the disaggregation of data by segments, it emerges that:

• Manufacture of motor vehicles. Overall revenue decreased by 18.5% in June 2024. In detail, the domestic market saw a 15.6% decline, while the foreign market experienced a 21.2% drop. In the cumulative first six months of 2024, revenue is down by 9.7%, with a 12.7% reduction in the domestic market and a 7.1% reduction in the foreign market.
• Manufacture of bodies, trailers, and semi-trailers. In June 2024, revenue decreased by 5.7%, with an 8.5% decline in the domestic market and a 1.5% decline in the foreign market. However, in the cumulative first six months, the segment shows a 3.8% increase, with a slight 0.7% decline in the domestic market and a strong 10.4% increase in the foreign market.
• Manufacture of parts and accessories for motor vehicles. It records one of the worst performances, with a revenue decline of 21.4% in June 2024. The domestic market suffered a 30.5% contraction, while the foreign market decreased by 9.9%. In the cumulative 2024, the revenue decline is 9.6%, with a 17.1% decrease for the domestic market and a 0.4% decrease for exports.

The data from June 2024 outline a complicated picture for the Italian automotive sector, marked by significant declines in both production and revenue. The situation appears particularly critical for the production of motor vehicles and spare parts, while the bodywork segment shows signs of recovery in the foreign market. These trends highlight the need for targeted strategies to address economic and market challenges. It is necessary to focus on innovation, internationalization, and sustainability to stimulate the sector’s recovery in the long term.