Industry Trend Analysis - Autos Investment Round-Up: Suppliers And EVs Are Key Investment Targets - JUNE 2017

BMI View: The rapid uptick in the value of autos investment projects in Q117 is somewhat misleading as it includes several major longer term projects in the US, which still do not account for new capacity. Suppliers and electric vehicles are notable drivers of growth in investment globally.

In Q117, our regional investment round-ups captured projects worth a combined total of USD23.9bn (for those that specified values), up 40.3% y-o-y. We emphasise, however, that this does include some large longer term investment strategies, particularly in the US, which will play out over a number of years and be divided over a number of projects and therefore the total is inflated. That said, the quarter was still an improvement on the previous year with 100 projects tracked in Q117 compared with 80 in Q116, of which six were over USD1bn, up from four in Q116.

From a regional perspective the picture is more mixed, with three regions posting a y-o-y decline in investment and four reporting an increase. Easily the biggest increase came in North America, where carmakers used January's North American International Auto Show to showcase major investment announcements, mostly for the US. The biggest decline came in the Middle East and North Africa (MENA) region where the value of announced projects fell 63% y-o-y. However, the number of projects was stable at six compared with seven in Q116 and so the decline is perhaps more reflective of a lack of value details on several of the projects.

Key US Strategies Boost Q117 Investment
Value Of Announced Projects In Q117 (USDmn)

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