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Suppliers´ margins have decreased for the last couple of years, due to higher material and labour costs, rising competition and pressure on sales prices.
The Spanish automotive industry continues to benefit from the on-going economic rebound of the domestic economy as well as from increasing car exports.
The short-term outlook remains benign, but the Brexit decision will surely have an impact on domestic car sales and British car exports in the mid-term.
While market conditions for the sector are expected to remain favourable for the time being, some downside risks could materialise in the course of 2017.
As car sales approach the pre-recession peak, the sector needs to adjust from what has been a growth environment to a more steady-state market situation.
The Mexican automotive sector is expected to continue growing in the coming years, with production forecast to increase to 5.2 million vehicles in 2020.
Major strengths of the Slovakian automotive industry are its close proximity to core export markets in Europe, low labour costs, and government support.