Automakers in Spain have signaled they want to boost their production output capacity by nine percent in 2014, further relying on exports to overcome the sluggish sales at home.

Manufacturers intend to increase production from 2.2 million units this year to 2.4 million vehicles next year, a growth of 9%, said David Barrientos, spokesman for the National Association of Car and Truck Manufacturers (ANFAC).

“Domestic demand is beginning to pick up timidly, notably thanks to scrappage incentives,” ANFAC president Rafael Prieto said at an industry forum in Madrid. “But we have still got a long way to go,” he cautioned.

Alongside Seat, the Spanish manufacturer wholly owned by the VW Group, the country also has another 17 manufacturing facilities owned by 10 other foreign automakers. As a result, Spain was the second-largest car producer in Europe after Germany in 2012. The industry, which is currently worth around 10% of Spain’s total economic output, seeks to buoy  production capacity to three million vehicles by 2016. Almost 90% of the vehicles produced in Spain are going out of the country.

The country’s internal car industry sales dipped from 1.7 million in 2007 to 700,000 units in 2012, said PwC Spain chief Carlos Mas. “But it managed to fight back by taking advantage of the dynamism of the foreign market,” he added.



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