Approaching the design process
Kelly Hoppen CBE
Challenges in the Portuguese car market: the industry perspective
Hélder Pedro
Secretary-general of the ACAP
Portugal’s car market has encountered some major difficulties in recent years due to the COVID-19 pandemic, the semiconductor crisis and, more recently, the war in Ukraine. According to market data from the Portuguese Automobile Association ACAP (Associação Automóvel de Portugal), the number of new cars put into circulation in 2022 was only 185,291, representing a fall of 30.8% compared to 2019. Although there was a slight increase of 2.8% compared to 2021, this is not enough to compensate for the significant fall recorded during the pandemic.
Despite the difficulties, the car industry has shown resilience and has been able to adapt to the changes, finding creative solutions to meet the challenges. The industry also presents significant opportunities due to technological advances, the emergence of new technologies, changes in consumer preferences and growing environmental concerns.
Importantly, government incentives, in particular for the purchase of electric vehicles, are crucial to ensure the necessary progress towards decarbonisation.
Additionally, the renewal of cars on the road is fundamental for us in order to reduce the age of the cars currently being driven, which has been on the increase. In fact, this should be a goal of both the European Union and the Portuguese government. The ACAP defends measures for the renewal of cars on the road, such as the reinstatement of scrapping incentives when purchasing a new vehicle. This measure is even included in the Revenue Agreement signed between the government and Social Partners.
However, the sector is still recovering from the impact of the pandemic, and the shortage of semiconductors, as well as logistical difficulties, which have hampered sales. For 2023, the ACAP expects demand to consolidate, with figures getting closer to pre-pandemic market values. However, and as already mentioned, there are several factors that contribute to a situation of unpredictability regarding the near future. Firstly, the unfortunate continuation of the war in Ukraine, as well as the increase in interest rates, which leaves, above all, families with bank loans in a vulnerable situation. As an association representing the sector, we must be prepared to support our members to face these challenges, as well as to continue adapting to the changes of the economic situation. The car sector has an important role to play in the Portuguese economy and continuing to work together is essential in order to ensure its long-term success.
Despite the difficulties, the car industry has shown resilience and has been able to adapt to the changes, finding creative solutions to meet the challenges. The industry also presents significant opportunities due to technological advances, the emergence of new technologies, changes in consumer preferences and growing environmental concerns.
Importantly, government incentives, in particular for the purchase of electric vehicles, are crucial to ensure the necessary progress towards decarbonisation.
Additionally, the renewal of cars on the road is fundamental for us in order to reduce the age of the cars currently being driven, which has been on the increase. In fact, this should be a goal of both the European Union and the Portuguese government. The ACAP defends measures for the renewal of cars on the road, such as the reinstatement of scrapping incentives when purchasing a new vehicle. This measure is even included in the Revenue Agreement signed between the government and Social Partners.
However, the sector is still recovering from the impact of the pandemic, and the shortage of semiconductors, as well as logistical difficulties, which have hampered sales. For 2023, the ACAP expects demand to consolidate, with figures getting closer to pre-pandemic market values. However, and as already mentioned, there are several factors that contribute to a situation of unpredictability regarding the near future. Firstly, the unfortunate continuation of the war in Ukraine, as well as the increase in interest rates, which leaves, above all, families with bank loans in a vulnerable situation. As an association representing the sector, we must be prepared to support our members to face these challenges, as well as to continue adapting to the changes of the economic situation. The car sector has an important role to play in the Portuguese economy and continuing to work together is essential in order to ensure its long-term success.
