Despite a turbulent 2022 where production fell and supply chains faltered, the European car industry is shifting gears, powering through with a historic electric surge and massive investments that are reshaping its future.
Key Takeaways
- In 2022, EU-27 passenger car production reached 13.5 million units, down 6.5% from 2021 due to supply chain disruptions.
- Germany led EU car production in 2022 with 4.1 million vehicles, accounting for 30% of total EU output.
- EU commercial vehicle production in 2022 was 2.8 million units, a 12% decline year-over-year.
- EU new passenger car registrations fell 10.9% in 2022 to 9.6 million units.
- Battery electric vehicles (BEVs) took 11.4% market share in EU 2022.
- Germany registered 2.8 million new cars in 2022, 29% of EU total.
- In 2022, EU automotive employment stood at 13.8 million jobs across the value chain.
- Direct manufacturing jobs in EU auto sector: 1.2 million in 2022.
- Germany employs 850,000 in automotive industry in 2022.
- In 2022, EU new cars emitted average 108.3 g/km CO2, down 3.4% from 2021.
- EU fleet-wide CO2 target for 2022 was 93.6 g/km for cars.
- BEVs in EU emitted 0 g/km tailpipe CO2 in 2022.
- Automotive sector contributed €370 billion to EU GDP in 2022.
- EU auto trade surplus: €108 billion in 2022.
- Germany auto exports: €250 billion in 2022.
Europe's car production declined in 2022 but rebounded in 2023, as electric vehicle output surged significantly.
Economics and Trade
- Automotive sector contributed €370 billion to EU GDP in 2022.
- EU auto trade surplus: €108 billion in 2022.
- Germany auto exports: €250 billion in 2022.
- EU R&D investment in auto: €65 billion annually average 2022.
- Turnover of EU carmakers: €1.1 trillion in 2022.
- Supplier industry value added: €170 billion in EU 2022.
- France auto sector GDP contribution: 2.5% in 2022.
- EU vehicle exports: 12.5 million units in 2022.
- Italy auto exports: €50 billion in 2022.
- Spain auto industry turnover: €110 billion in 2022.
- EU import value of auto parts: €120 billion in 2022.
- Czech auto exports: €40 billion, 60% GDP share in 2022.
- Investments in battery plants: €30 billion announced in EU by 2022.
- Slovakia auto exports: €35 billion in 2022.
- EU aftermarket turnover: €110 billion in 2022.
- Poland auto sector GDP: 4% in 2022.
- Tax revenue from EU auto: €200 billion annually 2022.
- Hungary FDI in auto: €15 billion cumulative to 2022.
- EU-China auto trade deficit: €20 billion in 2022.
- Portugal auto exports: €8 billion in 2022.
- OEM profit margins averaged 7.5% in EU 2022.
- Belgium auto turnover: €25 billion in 2022.
- EU semiconductor dependency cost auto €100 billion in 2022.
- Sweden auto exports: €20 billion in 2022.
- EU capital expenditure by auto: €80 billion in 2022.
Economics and Trade Interpretation
The European auto industry isn't just an economic engine; it's the entire high-octane, R&D-fueled, trade-surplus-generating factory floor that powers the continent's prosperity while nervously eyeing its semiconductor supply chain and China's trade ledger.
Emissions and Environment
- In 2022, EU new cars emitted average 108.3 g/km CO2, down 3.4% from 2021.
- EU fleet-wide CO2 target for 2022 was 93.6 g/km for cars.
- BEVs in EU emitted 0 g/km tailpipe CO2 in 2022.
- Diesel cars average CO2: 112 g/km in EU 2022 registrations.
- EU NOx emissions from cars reduced 75% since 2001 to 2022.
- 62% of EU new cars met 2025 CO2 target early in 2022.
- EU vans emitted 152 g/km CO2 on average in 2022.
- Plug-in hybrids real-world CO2: 90 g/km vs 40 official in 2022.
- EU particulate emissions from petrol cars down 90% since Euro 6.
- Lifecycle CO2 for EU BEVs: 60% lower than ICE by 2022.
- EU car CO2 supercredits inflated performance by 4 g/km in 2022.
- Heavy-duty vehicles NOx reductions: 80% since Euro VI in 2022.
- EU tyre rolling resistance contributes 20% to fuel consumption in 2022.
- 2025 EU CO2 target: 15% reduction from 2021 baseline for cars.
- EU EV charging emissions depend on grid: 50 g/km in France 2022.
- Petrol cars CO2: 118 g/km average in EU 2022.
- EU air quality improved by 25% due to cleaner vehicles by 2022.
- Hybrids CO2: 95 g/km in EU new sales 2022.
- EU mandates 100% zero-emission car sales by 2035.
- Well-to-wheel CO2 for EU diesel: 85 g/km in 2022.
- EU black carbon from brakes targeted for 2025 reduction.
- 2030 EU car CO2 target: 55% cut from 2021 levels.
- EU fleet age average 11.8 years contributing to emissions in 2022.
Emissions and Environment Interpretation
While European cars are becoming significantly cleaner with electrification and stricter standards, the industry's 2022 average emissions still stubbornly hovered above targets, revealing a journey of impressive progress that's not yet fully arrived at its destination.
Employment and Labor
- In 2022, EU automotive employment stood at 13.8 million jobs across the value chain.
- Direct manufacturing jobs in EU auto sector: 1.2 million in 2022.
- Germany employs 850,000 in automotive industry in 2022.
- EU auto R&D staff numbered 380,000 in 2022.
- France automotive workforce: 600,000 including suppliers in 2022.
- 25% of EU auto jobs are in electric vehicle transition roles by 2022.
- Spain's auto sector employs 350,000 people in 2022.
- Italy direct auto manufacturing jobs: 200,000 in 2022.
- EU supplier industry jobs: 4.5 million in 2022.
- Automotive apprenticeships in EU: 300,000 active in 2022.
- Slovakia's auto workforce: 120,000, 5% of national employment in 2022.
- Poland employs 200,000 in vehicle manufacturing in 2022.
- EU women in auto sector: 22% of workforce in 2022.
- Hungary auto jobs: 90,000 in 2022.
- Decline in diesel-related jobs: 50,000 lost in EU since 2019 to 2022.
- Sweden Volvo employs 25,000 in EU plants in 2022.
- Portugal auto employment: 50,000 in 2022.
- EU high-skilled auto jobs grew 10% to 2.5 million in 2022.
- Belgium auto sector jobs: 70,000 in 2022.
- Average EU auto worker salary: €45,000 annually in 2022.
- Netherlands auto employment: 40,000 in 2022.
- Austria Magna Steyr jobs: 10,000 in 2022.
- Romania Dacia employs 20,000 in 2022.
- EU average working hours in auto: 1,650 per year in 2022.
Employment and Labor Interpretation
While it's true that nearly 14 million EU jobs are fueled by the automotive sector's value chain, this engine is undergoing a complex tune-up, shifting gears towards high-skilled and electric futures as it carefully navigates the potholes of diesel decline and a persistent gender gap in the driver's seat.
Production and Output
- In 2022, EU-27 passenger car production reached 13.5 million units, down 6.5% from 2021 due to supply chain disruptions.
- Germany led EU car production in 2022 with 4.1 million vehicles, accounting for 30% of total EU output.
- EU commercial vehicle production in 2022 was 2.8 million units, a 12% decline year-over-year.
- In 2023 Q1, EU passenger car production grew by 4.2% to 3.2 million units compared to Q1 2022.
- Spain's vehicle production in 2022 hit 2.9 million units, making it the second-largest in EU.
- EU engine production in 2022 totaled 15.2 million units, with diesel engines at 42% share.
- France produced 1.8 million vehicles in 2022, focusing on electric and hybrid models.
- In 2021, EU-27 manufactured 14.4 million passenger cars before the chip shortage impact.
- Italy's car production dropped to 800,000 units in 2022, affected by semiconductor shortages.
- EU battery electric vehicle (BEV) production surged 40% in 2022 to 2.1 million units.
- Czech Republic output reached 1.4 million vehicles in 2022, led by Skoda.
- EU parts and components production value was €450 billion in 2022.
- In H1 2023, EU vehicle production rose 8.5% to 6.9 million units.
- Slovakia produced 1.1 million cars in 2022, highest per capita in EU.
- EU hybrid vehicle production increased 25% in 2022 to 1.8 million units.
- Hungary's vehicle output was 450,000 units in 2022, driven by Audi and Mercedes.
- In 2020, EU production fell 20.7% to 11.8 million passenger cars due to COVID.
- Poland manufactured 550,000 vehicles in 2022, focusing on commercial vans.
- EU electric motor production hit 3.5 million units in 2022.
- Romania's Dacia plant produced 330,000 cars in 2022.
- In 2023, EU OEMs invested €50 billion in new factories for EVs.
- Belgium produced 250,000 vehicles in 2022, mainly luxury models.
- EU gearbox production was 12.8 million units in 2022, with automatics at 55%.
- Sweden's Volvo plant output was 200,000 cars in 2022.
- In Q2 2023, EU production rebounded 18% to 3.8 million vehicles.
- Portugal assembled 400,000 vehicles in 2022 for export.
- EU total vehicle production (incl. others) was 16.6 million in 2022.
- Austria produced 150,000 cars in 2022 via Magna Steyr.
- In 2019 pre-pandemic peak, EU produced 18.9 million vehicles.
- Bulgaria's vehicle production was 50,000 units in 2022, niche market.
Production and Output Interpretation
The European auto industry is proving remarkably resilient, with Germany steadfastly leading a post-pandemic recovery that saw overall production dip in 2022 but is now vigorously accelerating, powered by a monumental €50 billion bet on an electric future where BEV output soared 40% while traditional engines still accounted for 42% of the 15.2 million units made.
Sales and Market
- EU new passenger car registrations fell 10.9% in 2022 to 9.6 million units.
- Battery electric vehicles (BEVs) took 11.4% market share in EU 2022.
- Germany registered 2.8 million new cars in 2022, 29% of EU total.
- EU hybrid (non-plug-in) registrations rose 12% to 2.1 million in 2022.
- France saw 1.9 million new car sales in 2022, down 9%.
- Plug-in hybrids (PHEVs) market share reached 9.5% in EU 2022.
- Italy's new car registrations dropped 13.1% to 1.4 million in 2022.
- In Jan 2023, EU car sales rose 18.2% YoY to 861,000 units.
- Spain registered 940,000 new vehicles in 2022, up 2.7%.
- Petrol cars held 36.5% EU market share in 2022.
- Netherlands BEV share was 29% of new sales in 2022.
- EU light commercial vehicle registrations fell 8.4% to 1.9 million in 2022.
- Sweden's EV market share hit 47% in 2022.
- Diesel registrations dropped to 12.5% EU share in 2022.
- In 2023 H1, EU BEV sales up 15% to 750,000 units.
- Belgium new car sales declined 14% to 450,000 in 2022.
- EU fleet sales represented 45% of total registrations in 2022.
- Poland registered 450,000 new cars in 2022, down 19%.
- Luxury segment sales in EU grew 5% to 1.2 million in 2022.
- Austria's EV registrations surged 60% to 80,000 in 2022.
- EU SUV registrations hit 5.1 million, 53% of market in 2022.
- Czech Republic sales fell 20% to 250,000 vehicles in 2022.
- Private buyer share of EU sales was 44% in 2022.
- Portugal new registrations up 10% to 160,000 in 2022.
- EU used car market volume was 28 million transactions in 2022.
- Hungary sales dropped 25% to 120,000 new cars in 2022.
Sales and Market Interpretation
While a painful 10.9% drop in new car sales shows the European auto market stalling in 2022, the electric revolution quietly accelerated, with one in five new cars now plugging in and SUVs dominating over half the road.
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