Market Monitor Automotive Sweden 2018

Market Monitor

  • Sverige
  • Automotive/Transport

04 september 2018

Profit margins are rather high in the sector, with most businesses financially resilient enough to cope with minor volatility in demand or commodity prices.

2018 sweden cars pic1

  • The Swedish car producer segment is dominated by Volvo Cars in the passenger car segment and by Volvo AB and Scania AB in the truck segment. Those companies are mainly export-oriented (the export ratio amounts to more than 85%), and they largely determine the performance of smaller Swedish suppliers.
  • In 2017 car production increased 10.2% to 226,000 units, according to the International Organization of Motor Vehicle Manufacturers, OICA. Swedish GDP is expected to grow 2.8% in 2018 after increasing 2.7% in 2017, supporting domestic automotive sales.
  • Profit margins in the automotive industry are rather high and expected to remain stable in 2018. Most businesses should be financially resilient enough to cope with some minor volatility in demand or commodity prices. The current interest rate environment (the Swedish benchmark interest rate remains at -0.5%) favours companies in servicing their debt, and banks are willing to lend.
  • Depending on the level in the supply chain, payment duration in the automotive sector ranges from 30 to 90 days. The level of non-payments and insolvencies is low. This is expected to remain unchanged in the coming months.
  • Our underwriting stance remains generally open for this industry, with no restrictions on any subsectors. Due to its high export dependency the automotive sector is exposed to currency exchange risk, as most costs incurred are in Swedish krona. Therefore we check that businesses take adequate measures to manage this risk.

 

 

Relaterte dokumenter

Ansvarsfraskrivelse

Fremstillingene som er gitt her er kun generell informasjon, og skal ikke stoles på eller brukes som grunnlag for noe formål. Vennligst referer til selve polisen eller den aktuelle produkt- eller serviceavtalen for de styrende vilkårene. Ingenting i dette dokumentet skal tolkes til å skape noen rett, plikt eller ansvar fra Atradius' side, inkludert noen forpliktelse til å gjennomføre tilbørlig aktsomhet (due diligence) for kjøpere eller på dine vegne. Hvis Atradius gjennomfører tilbørlig aktsomhet for en kjøper, er det for egne underwriting-formål, og ikke til fordel for den forsikrede eller noen annen. I tillegg skal Atradius og tilhørende og tilknyttede selskaper og datterselskaper ikke i noe fall være ansvarlig for noen direkte, indirekte, spesielle eller tilfeldige skader eller følgeskader som følge av bruk av de fremstillinger som det er gitt informasjon om her.