Analysis. Romania motors into auto revolution

With a post-crisis annual growth pace of 15 percent for the local automotive market, Romania is now ranked 11th in Europe by annual car production. Furthermore, the sector represents about 13 percent of GDP and a quarter of total exports.

By Anda Sebesi

The local car industry started to increase speed when French carmaker Renault took over the Dacia plant from Mioveni, back in 1999. Since then, its rapid development has been fuelled by a firmly established strategy for exports and the inspired positioning of the Dacia brand on the international market. From an annual production of 90,000 units at the end of 1990 to about 340,000 now, Dacia exceeded RON 20 billion in turnover in 2016. American giant Ford’s investment in the car plant in Craiova, in 2007, was another significant driver for the sector.

Cars at the crossroads

The global automotive industry has reached the start of an unprecedented transformation. What is certain is that the cars in ten years – the way they are designed, produced, the propulsion system, the way we use them – will all change. “We are at the crossroads of a major paradigm shift. Digitalization, autonomous driving, electrification and the sharing economy – all these major global trends are the defining pillars of change for the automotive industry,” says Wolfgang Schulz, general manager of BMW Group Romania.

He adds: “We can imagine a future of cars that are used in sharing programs, they arrive autonomously at our home (so we don’t need parking places in cities anymore), they know and adapt to the preferences of the user (from sitting position to entertainment systems, from exterior color to interior climate). Cars will not only be about getting from A to B; connectivity will transform them into digital hubs. You will have access to digital assistants like Amazon Alexa and to all imaginable digital services – from video streaming to in-car online shopping.”

Schulz says that BMW for example has already presented functional haptic holographic controls on the BMW i Inside Future concept car. “You can add augmented reality for a perfectly integrated infotainment system, and the sci-fi imagined future is no longer so far away. All this in a package that is produced and used in a sustainable way – renewable materials and a clean electric propulsion system,” he adds.

As it is part of a bigger market, Europe, Romania needs to adapt to the new trends. In the last year, for example, also thanks to impactful government programs, electric cars have become relevant and electric charging infrastructure is developing fast. “We have seen the rise of the first car-sharing program in Bucharest. We see that the automotive revolution is coming to Romania,” concludes Schulz.

Romanian automotive market milestones

Fast development: Major investments in production have generated significant economic progress. It is not only about brands that are manufactured locally, but about the strong network of suppliers that both produce and develop advanced technology in Romania.

Automotive retail: The late ’90s and early 2000s saw the opening of the first dealers and importers. After an early period of uncertainty and rapid learning curves, the market settled on a steep growth and developing path. The global came to Romanian automotive retail after 2007 and international knowledge and knowhow were duly transferred to the local market into advanced services. We slowly turned from cash purchases in the late ’90s to a leasing-predominant market.

Electric mobility: Recent years have seen the start of electric mobility. The share is still well below 1 percent, but there are now committed players on the market and a continuously developing charging infrastructure. In addition, hundreds of electric and plug-in cars that are now running on our streets send out a clear and strong statement – electricity works in Romania too.

Source: BMW Group Romania

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