The value of the Romanian automotive industry will go up to 4.7 billion euros this year, an increase of about one billion euros from last year, according to ACAROM (Association of Carmakers in Romania) data. "The automotive component industry in Romania, a segment of the automotive industry, will register growth due to the privatisation process that will reach across the entire sector. The automotive industry will be worth 5.7 billion euros in 2007," believes Constantin Stroe, ACAROM chairman. One of the main attractions for foreign investors remains the low cost of the labour in Romania, Stroe believes. He says Romania became the second largest market in Central and Eastern Europe after Poland last year. This growth is based on the low car ownership index in Romania, ACAROM says. The average ratio of vehicles to people in Romania is 140 vehicles for every 1,000 people. This puts Romania below the Central and Eastern European average, 193 vehicles for every 1,000 people. The emergence of attractive lending systems and the increase in sales in leasing contributed to the development of the automotive industry, along with the incomes made by the Romanians working abroad and the (old car) scrapping premium paid by the state to stimulate car fleet renewal, ACAROM official believes. About 15,000 vehicles were sold thanks to the scrapping premium system in 2005, with the programme set to be resumed this year, too, according to Romanian government officials. ZF
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