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The motor-vehicle industry is heavily dependent on foreign markets, and some 60 percent of output is exported. Last year, exports of motor vehicles were about SEK 125 billion, or roughly 15 percent of Sweden’s total exports of goods (see Diagram 86). Demand for motor vehicles has remained strong this year. New registrations of heavy-duty vehicles in Western Europe through September are up by almost 7 percent compared with the same period last year. Purchases of passenger cars have also increased in Western Europe, and both Volvo and SAAB have gained market shares. Exports of motor vehicles will have risen by more than 10 percent this year as well, and industry output by almost 15 percent. With productivity growth still strong, however, employment in the industry has been virtually unchanged since last year.
Diagram 86 Motor Vehicles as a Share of Total Exports of Goods
Sources: Statistics Sweden and NIER.
Distribution of Swedish motor vehicle production by market, 2005 (in %)
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