The auto and motor industry in the Netherlands continues to thrive, as the first quarter of 2023 witnessed a remarkable surge in revenue, soaring 22.2 percent higher compared to the previous year. This positive trend has persisted since the second quarter of 2021, showcasing the resilience of the sector. The latest data from the Central Bureau of Statistics (CBS) confirms the steady growth, attributed to increasing sales and price hikes.
All segments within the auto and motor industry experienced double-digit growth compared to the same period last year. Importers of new vehicles took the lead with a substantial 44 percent surge in revenue, while the trading and repair of passenger cars saw a notable increase of 21.6 percent.
The resolution of parts shortages and logistical challenges contributed to the higher sales of (electric) cars. Furthermore, electric vehicles, known to be relatively more expensive than combustion engine cars, witnessed a surge in demand.
The heavy commercial vehicle sector has consistently surpassed previous-year figures for over two years, with a solid growth rate of 19.2 percent in the first quarter of 2023. The heightened demand and increased prices drove this growth. However, the caravan industry, which is also part of this sector, experienced a slightly slower growth rate. Meanwhile, the trading and repair of motorcycles saw a promising 11 percent increase in the first quarter.
Despite the positive growth in revenue, the business sentiment within the auto and motor industry saw a slight decline. The business confidence index stood at 4.0 at the beginning of the second quarter of 2023, down from 11.6 in the first quarter. Although the sentiment remains positive, it is comparatively lower than that of other industries. Across all sectors, the business confidence index was recorded at 7.5 in the early stages of the second quarter of 2023.
Moreover, the industry continues to face challenges posed by the tight labor market. Approximately 41.5 percent of companies reported a shortage of skilled workers at the start of the second quarter of 2023, indicating an increase from the 35.7 percent reported in the first quarter. The number of job vacancies has slightly increased, with 8.4 thousand vacancies reported in the first quarter, compared to 8.2 thousand in the fourth quarter of 2022.
The robust performance of the Netherlands’ auto industry in the first quarter of 2023 not only underscores its resilience but also highlights the ongoing demand for vehicles in the market. With rising sales, increasing prices, and the challenge of labor shortages, industry players are adapting to sustain growth and meet customer needs.