BERLIN -- About two-thirds (62.2 percent) of German auto suppliers are expecting slight growth in business in the next three years, according to a new study.
China and eastern Europe are seen as primary regions with growth potential. At the same time, nearly 90 percent of suppliers expect incr-eased competition. KPMG, author of the study, polled 76 directors and managing directors in the industry.
For 52.6 percent of the interviewees, the main source of growing competition is the arrival of new foreign competitors in the market. This is probably why 71 percent of those interviewed expect a consolidation in the industry.
On the other hand, supply business abroad is set to grow sharply: 81 percent see China as the biggest growth market, and 76.3 percent believe in strong growth in eastern Europe. KPMG partner Karl-Michael Krüger views the projected market growth as "optimistic." He added that the reasons for this lie in the "planning figures of the manufacturers and the shift of activity towards the suppliers."