BMI's Executive Summary

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Italy's new car market enjoyed solid growth in 2007, prompting BMI to raise its sales estimate for the
year. Buoyed by government incentives, the increase in new car registrations has been such that Italy has
now surpassed France to rank as the third biggest car market in Europe (EU+EFTA), behind Germany
and the UK. Fiat continues to dominate its domestic market, and many of the industry developments are
related to the carmaker.

According to data from the Italian carmakers' association, ANFIA, during the period January-November
2007 new car registrations totalled 2,328,356 units, a solid increase of 6.6% year-on-year (y-o-y). A
rejuvenated Fiat sold 562,014 units, with sales being boosted by popular models such as the Punto and
Panda – the best-selling models during the 11-month period. Fiat was followed by Ford, which sold
189,147 units, up by 11.8% y-o-y. German-based Opel completed the top three, selling 167,724 units, an
increase of 9.9% on the same period a year earlier. Carmakers ranked outside the top 10 that enjoyed
significant increases in sales during the 11-month period to November included Daihatsu, whose sales
soared by 62.8% y-o-y to 15,361 units, Land Rover, which reported a 50.9% increase to 13,767 units and
Skoda, up by 25.0% y-o-y to 15,481 units. BMI's revised sales forecast for 2007 stands at 2,540,000
units.

As mentioned above, the most significant industry developments this quarter relate to Fiat. While the
ambitious carmaker has taken more steps aimed at boosting its international standing, growth on the
Italian market is still a main concern. Indeed, in December 2007, Fiat announced its target of seizing 25%
of the domestic market in 2008. The carmaker will also seek to obtain more than 7.0% of the Western
European market during the year.

A significant amount of Fiat's growth will come from its overseas exploits nonetheless. In H207, Fiat
concluded a memorandum of understanding with the Russian manufacturer AvtoVAZ through which it
will target growth on the fast-growing Russian market.

Fiat is also bidding to boost its business in Latin America. In November 2007 the carmaker unveiled
investment of US$3.5bn between 2008 and 2010 for Argentina and Brazil, two key automotive markets in
the region. Fiat is expected to use the capital to raise production, taking advantage of the unprecedented
growth these markets have been enjoying, as well as their geographical positions. Fiat already leads the
Brazilian market and according to industry sources, most of the fresh investment will be used to expand
the carmaker's plant in Betim, Minas Gerais.

Contents

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New This Quarter

Market Overview

Competitive Landscape

Chapter 1 – SWOT Analysis

Chapter 2 – Market Overview

Chapter 3 – Industry Forecast Scenario

Table: Italy - Historical Data & Forecasts, Automobile Industry

Chapter 4 – Macroeconomic Forecast Scenario

Table: Italy - Macroeconomic Forecasts

Country Snapshot: Italy Demographic Data

Section 1: Population:

Table: Demographic Indicators (2005)

Table: Rural/Urban Breakdown

Section 2: Education & Healthcare

Table: Education

Table: Healthcare: Vital Statistics

Table: Healthcare: Expenditure

Section 3: Labour Market And Spending Power

Table: Employment Indicators

Table: Consumption and Stratification

Chapter 5 - Competitive Landscape

Table: Italy - Automobile Production - Market Share, 2005

Table: Italy - Automobile Sales – H1 2006 (CBUs)

Chapter 6 - Company Monitor

Fiat

BMI Forecast Modelling

Automobile Industry

Sources

Competitive Landscape for European Automotives: Sample of  
Companies Ranked

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Rankings and Competitive Landscapes by production and sales; market share and change on previous year; number of employees, ownership structure and year established. Also includes analysis of company expansion, export and investment strategies.

Network of Automotive Sources

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BMI's European Automotives Reports are based on an extensive network of multilateral organisations, government departments, automotive industry associations, chambers of commerce and company reports. Information sources include: