Despite declining overall production, the European auto industry is charging forward with an electric transformation, as evidenced by a 40% surge in battery electric vehicle output in 2022 even as total vehicle numbers fell.
Key Takeaways
- In 2022, the EU27 produced 12.78 million motor vehicles, down 6.5% from 2021
- Germany accounted for 4.16 million vehicles produced in the EU in 2022, representing 32.5% of total EU output
- In 2023 Q1, EU car production reached 2.79 million units, a 5.1% decline year-over-year
- EU passenger car registrations reached 10.5 million in 2022, down 8.8% from 2021
- Germany led EU car sales with 2.82 million registrations in 2022
- France registered 1.91 million new passenger cars in 2022
- The EU auto industry directly employs 1.2 million people in manufacturing
- Total EU automotive sector employment reaches 13.8 million jobs, including indirect
- In Germany, 830,000 people work in auto manufacturing as of 2022
- EU auto industry turnover: €775 billion in 2022
- Contribution to EU GDP: 7% from automotive sector in 2022
- EU auto trade surplus: €109.4 billion in 2022
- EU spent €62 billion on automotive R&D in 2021, 30% of global total
- EU new car CO2 emissions averaged 108.4 g/km in 2022, down 2.3% YoY
- 100% of new EU cars must be zero-emission by 2035 per regulation
The EU auto industry is declining overall but electric vehicle production is growing significantly.
Employment and Labor
- The EU auto industry directly employs 1.2 million people in manufacturing
- Total EU automotive sector employment reaches 13.8 million jobs, including indirect
- In Germany, 830,000 people work in auto manufacturing as of 2022
- France employs 210,000 in vehicle production
- Spain's auto sector supports 450,000 direct and indirect jobs
- Italy has 510,000 jobs in automotive industry
- Czech Republic auto employment: 130,000 people
- Slovakia employs 120,000 in vehicle manufacturing
- Poland's auto sector jobs: 200,000 direct
- EU auto R&D personnel: 380,000 highly qualified engineers
- Automotive apprenticeships in EU: 400,000 trainees annually
- Female employment in EU auto manufacturing: 22% of workforce in 2022
- Average hourly labor cost in EU auto manufacturing: €32.5 in 2021
- EU auto sector job losses: 100,000 since 2019 due to electrification
- Hungary auto employment: 90,000 jobs
- Romania employs 70,000 in vehicle production
- Portugal auto jobs: 50,000 direct
- Sweden automotive employment: 100,000
Employment and Labor Interpretation
The EU auto industry is a continental economic engine so massive that its 13.8 million jobs are both a tremendous source of pride and a sobering reminder of the high-wire act required to steer it through an electric future, one expensive and uncertain transition at a time.
Financial and Economic
- EU auto industry turnover: €775 billion in 2022
- Contribution to EU GDP: 7% from automotive sector in 2022
- EU auto trade surplus: €109.4 billion in 2022
- Germany auto exports: €174 billion in 2022
- R&D investment by EU auto makers: €75 billion annually
- EU vehicle manufacturing value added: €150 billion in 2021
- Average revenue per EU car producer employee: €500,000 in 2022
- Stellantis 2023 revenue: €189.5 billion, with EU major contributor
- Volkswagen Group revenue: €322.3 billion in 2023
- BMW revenue from automotive: €155.5 billion in 2023
- EU auto parts turnover: €400 billion in 2022
- Tax revenue from EU auto sector: €200 billion annually
- EU-China auto trade deficit: €50 billion in 2022
- Investment in EU battery production: €30 billion committed by 2030
- Average profit margin EU OEMs: 6.5% in 2022
- France auto industry GDP contribution: 2.1%
- Spain auto exports: €35 billion in 2022
- EU auto sector capital expenditure: €50 billion yearly
Financial and Economic Interpretation
While the €775 billion engine of Europe's auto industry roars with impressive trade surpluses and R&D might, the €50 billion trade deficit with China is the stubborn check-engine light warning that this powerhouse can't afford to ignore.
Production and Manufacturing
- In 2022, the EU27 produced 12.78 million motor vehicles, down 6.5% from 2021
- Germany accounted for 4.16 million vehicles produced in the EU in 2022, representing 32.5% of total EU output
- In 2023 Q1, EU car production reached 2.79 million units, a 5.1% decline year-over-year
- Spain produced 2.23 million vehicles in 2022, making it the second-largest producer in the EU
- France's automobile production in 2022 was 1.41 million units, a 12.2% drop from prior year
- EU battery electric vehicle (BEV) production hit 1.4 million units in 2022, up 40% from 2021
- In 2022, the EU manufactured 2.1 million hybrid electric vehicles (HEVs)
- Italy produced 790,846 vehicles in 2022, down 15.6% YoY
- Czech Republic's vehicle output was 1.41 million in 2022, 8th in EU rankings
- Slovakia led per capita production with 1.02 million vehicles in 2022 despite small population
- EU commercial vehicle production fell 13.6% to 2.47 million units in 2022
- In January 2024, EU passenger car production was 944,913 units, down 0.1% YoY
- Hungary produced 452,748 vehicles in 2022, up 4.7% YoY
- Poland's output reached 573,504 units in 2022
- Romania manufactured 433,989 vehicles in 2022
- EU engine production totaled 15.2 million units in 2022, down 5%
- In 2023, EU27 vehicle production was projected at 15.3 million units
- Belgium produced 226,278 vehicles in 2022
- Sweden's output was 235,518 units in 2022, down 20%
- Austria manufactured 121,361 vehicles in 2022
- Portugal produced 340,190 units in 2022, up 32.5% YoY
- EU27 produced 12.78 million motor vehicles in 2022, down 6.5%
- In 2023, EU car production fell 2.5% to 10.64 million units
- EU commercial vehicle production: 2.59 million in 2023, up 4.9%
- Germany car production: 3.76 million in 2023
- EU BEV production: 1.6 million in 2023, 16% of total cars
- PHEV production in EU: 1.3 million units 2023
Production and Manufacturing Interpretation
While the EU's conventional engine is sputtering in protest, its electric heartbeat is accelerating with a determined, if not yet dominant, rhythm.
Sales and Market Share
- EU passenger car registrations reached 10.5 million in 2022, down 8.8% from 2021
- Germany led EU car sales with 2.82 million registrations in 2022
- France registered 1.91 million new passenger cars in 2022
- Italy's new car registrations totaled 1.55 million in 2022, down 13.2%
- Spain saw 939,472 new passenger car registrations in 2022, up 3.1%
- BEV registrations in EU hit 1.84 million in 2022, 14.6% market share
- PHEV sales reached 1.11 million units in EU 2022, 8.8% share
- EU new passenger car market share for petrol cars was 35.5% in 2022
- Diesel cars held 16.5% market share in EU new registrations 2022
- In 2023, EU passenger car registrations grew 13.9% to 10.6 million units
- Volkswagen Group sold 4.05 million cars in EU in 2023, 24.2% share
- Stellantis registered 1.83 million vehicles in EU 2023
- Renault Group EU sales: 1.55 million units in 2023
- BMW Group EU deliveries: 1.32 million in 2023, up 6.4%
- Mercedes-Benz Cars EU sales: 557,000 units in 2023
- EU light commercial vehicle registrations: 2.2 million in 2022
- In Q1 2024, EU BEV market share rose to 15.3% of new car sales
- Germany BEV registrations: 524,250 in 2023
- Netherlands led BEV share at 29% of new cars in 2023
- Sweden's BEV market share: 36.5% in 2023
- EU used car market: 37 million transactions in 2022
Sales and Market Share Interpretation
Even as the continent’s overall car market sputters like a hesitant engine, the future is unmistakably charging ahead, with electric vehicles now accounting for nearly one in three new cars in leading markets while the used car lot hums with 37 million transactions, proving Europeans still love to drive, just perhaps not always straight from the showroom.
Sustainability and Environment
- EU spent €62 billion on automotive R&D in 2021, 30% of global total
- EU new car CO2 emissions averaged 108.4 g/km in 2022, down 2.3% YoY
- 100% of new EU cars must be zero-emission by 2035 per regulation
- EU BEV fleet reached 3.5% of total passenger cars in 2022
- EU-27 CO2 reduction target for cars: 55% by 2030 vs 2021
- Renewable energy use in EU auto manufacturing: 25% in 2022
- EU truck CO2 standards: 15% reduction by 2025
- Battery recycling rate target: 95% by 2030 in EU
- EU auto industry water usage: 1.2 billion m³ annually
- Share of recycled materials in new EU cars: 25kg per vehicle average
- EU aims for 30 million zero-emission cars by 2030
- GHG emissions from EU auto production: 100 million tonnes CO2eq in 2021
- EU tyre labelling energy efficiency: A-rated tyres 40% of market in 2022
- Scope 3 emissions reporting mandatory for EU OEMs from 2024
- EU hydrogen refuelling stations: 178 operational in 2023
- Biofuel blending in EU diesel: 7% average in 2022
- EU car fleet average age: 12.2 years in 2022
- NOx emissions from new EU cars: reduced 80% since 2001
- EU battery gigafactories planned: 60 GWh capacity by 2025
- PM emissions cut 90% in EU new cars since Euro 1
Sustainability and Environment Interpretation
The EU's auto industry is investing fortunes and wrangling ancient fleets in a frantic, multi-front race to simultaneously reinvent the wheel and shrink its planetary footprint before the regulatory clock strikes 2035.
Sources & References
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