While headlines shout about declining production figures, the European car industry is quietly reinventing itself on the fly, as a 25% surge in electric vehicle output signals a decisive pivot away from the combustion engine.
Key Takeaways
- In 2022, the European Union produced 13.3 million passenger cars, marking a 6.2% decrease compared to 2021 levels amid supply chain disruptions.
- Germany led EU passenger car production in 2022 with 4.1 million units, accounting for 30.8% of total EU output.
- In 2023, EU light vehicle production totaled 15.5 million units, a 14% decline from 2022 due to economic pressures.
- In 2022, the EU new car market registered 10.6 million units, down 10.9% from 2021.
- Battery-electric vehicles (BEVs) achieved a 13.5% market share in EU new car sales in 2023.
- Germany saw 2.8 million new car registrations in 2023, down 0.3%.
- The EU automotive sector directly employed 1.2 million people in manufacturing in 2022.
- Germany's auto industry employed 820,000 workers in 2022.
- EU auto R&D personnel numbered 370,000 in 2022.
- In 2022, EU auto industry invested €55 billion in R&D, 5.8% of turnover.
- EU patented 1,200 autonomous driving technologies in 2022.
- Battery electric vehicles comprised 14.6% of EU sales in Q1 2024.
- EU exported €128 billion worth of vehicles in 2022.
- Automotive industry contributed 7% to EU total exports in 2022.
- Germany's auto exports reached €150 billion in 2023.
EU car production declined amid challenges, but electric vehicles and exports grew strongly.
Economic Impact
- EU exported €128 billion worth of vehicles in 2022.
- Automotive industry contributed 7% to EU total exports in 2022.
- Germany's auto exports reached €150 billion in 2023.
- EU vehicle trade surplus was €92 billion in 2022.
- France auto industry turnover was €130 billion in 2022.
- EU imported €36 billion in vehicles in 2022.
- Spain's automotive exports hit €30 billion in 2023.
- Auto sector generated €500 billion turnover in EU manufacturing in 2022.
- Italy exported 3.8 million vehicles in 2022.
- EU parts and accessories exports were €120 billion in 2022.
- Czech Republic auto exports accounted for 60% of GDP contribution in 2022.
- EU auto value added was €220 billion in 2022.
- Slovakia's exports reached €20 billion from autos in 2022.
- Automotive taxes contributed €400 billion to EU budgets in 2022.
- Poland's auto trade surplus was €15 billion in 2022.
- Hungary auto industry turnover €25 billion in 2022.
- EU-China vehicle trade deficit grew to €20 billion in 2023.
- Romania auto exports €10 billion in 2022.
Economic Impact Interpretation
While Europe’s auto industry remains a formidable economic engine, churning out everything from luxury sedans to critical parts and generating colossal surpluses, its future competitiveness is quietly being tested by a growing trade deficit with China.
Employment
- The EU automotive sector directly employed 1.2 million people in manufacturing in 2022.
- Germany's auto industry employed 820,000 workers in 2022.
- EU auto R&D personnel numbered 370,000 in 2022.
- France's automotive workforce was 235,000 in direct manufacturing in 2022.
- Total EU automotive platform (incl. suppliers) employed 13.8 million in 2022.
- Spain's car industry jobs reached 140,000 in 2022.
- Italy had 510,000 automotive sector employees in 2021.
- EU female employment in auto manufacturing was 22% in 2022.
- Czech Republic auto sector employed 130,000 in 2022.
- Automotive suppliers in EU provided 7.1 million jobs in 2022.
- Slovakia's automotive industry workforce was 120,000 in 2022.
- In 2022, 42% of EU auto manufacturing jobs were high-skilled.
- Poland employed 190,000 in auto production in 2022.
- Hungary's auto sector jobs totaled 95,000 in 2022.
- EU apprenticeships in automotive reached 80,000 in 2022.
- Romania's automotive employment was 85,000 in 2022.
- Auto retail and maintenance in EU supported 1.6 million jobs in 2022.
Employment Interpretation
Despite Germany's penchant for precision engineering, the true engine of the European auto industry is a sprawling, 13.8-million-strong ecosystem where for every high-skilled designer there is a legion of suppliers, retailers, and mechanics keeping the continent's wheels—and its economy—turning.
Innovation
- In 2022, EU auto industry invested €55 billion in R&D, 5.8% of turnover.
- EU patented 1,200 autonomous driving technologies in 2022.
- Battery electric vehicles comprised 14.6% of EU sales in Q1 2024.
- EU auto R&D spending reached €60 billion in 2023.
- Germany filed 45% of EU automotive patents in 2022.
- EU invested €32 billion in zero-emission vehicle tech in 2022.
- 25 EU models achieved 5-star Euro NCAP safety rating in 2023.
- EU hydrogen fuel cell patents rose 30% in 2022.
- France's auto R&D expenditure was €7.5 billion in 2022.
- EU connected car features in 70% of new vehicles in 2023.
- Spain invested €2.1 billion in auto R&D in 2022.
- EU Level 2+ ADAS standard in 55% of new cars in 2023.
- Italy's R&D in automotive hit €4.2 billion in 2022.
- EU recycling rate for end-of-life vehicles was 95.2% in 2022.
- EU filed 15,000 EV battery patents in 2022.
- Automotive ICT specialists in EU numbered 250,000 in 2022.
- EU CO2 emissions from new cars fell 23% since 2019 to 108.3 g/km in 2023.
Innovation Interpretation
It seems the European auto industry is desperately trying to reinvent the wheel, spending billions on R&D and patents while Germany files nearly half of them, all to ensure their electric and connected future is as safe, smart, and green as the 95% of an old car they've already learned to recycle.
Market Share
- In 2022, Germany held 27% market share in EU new car sales.
- Volkswagen Group commanded 15.5% EU market share in 2023.
- Stellantis achieved 19.8% share in LCV sales in EU 2023.
- Renault Group had 10.2% passenger car share in France 2023.
- Chinese brands reached 3.5% EU market share in 2023.
- BMW Group sold 1.1 million units in EU, 10% share in premium segment 2023.
- Mercedes-Benz held 8.2% luxury segment share in Germany 2023.
- Ford's EU market share was 5.1% in 2023.
- Hyundai-Kia group captured 7.8% EU share in 2023.
- Toyota achieved 6.5% market share with strong hybrid sales in 2023.
Market Share Interpretation
Despite Germany’s traditional dominance, the European auto market is becoming a tense chessboard where the homegrown Volkswagen and Stellantis juggernauts are being circled by Asian efficiency and Chinese ambition, all while the premium Germans fiercely guard their high-end castles.
Production
- In 2022, the European Union produced 13.3 million passenger cars, marking a 6.2% decrease compared to 2021 levels amid supply chain disruptions.
- Germany led EU passenger car production in 2022 with 4.1 million units, accounting for 30.8% of total EU output.
- In 2023, EU light vehicle production totaled 15.5 million units, a 14% decline from 2022 due to economic pressures.
- France produced 1.6 million passenger cars in 2022, representing 12% of EU total production.
- EU commercial vehicle production reached 2.4 million units in 2022, up 1.5% from the prior year.
- In Q1 2024, EU passenger car production was 2.8 million units, down 5.3% year-over-year.
- Spain's passenger car output in 2022 stood at 2.2 million units, making it the second-largest producer in the EU.
- EU engine production for passenger cars was 12.9 million units in 2022, a 7.8% drop.
- Italy manufactured 1.4 million vehicles in 2022, focusing heavily on premium segments.
- In 2023, EU battery electric vehicle (BEV) production surged by 25% to 1.2 million units.
- Czech Republic produced 1.3 million cars in 2022, with a strong emphasis on exports.
- EU total vehicle production (including LCVs) hit 16.7 million units in 2022.
- Slovakia's auto production reached 1.0 million units in 2022, per capita highest in EU.
- In 2022, EU produced 2.1 million light commercial vehicles (LCVs).
- Hungary output 0.5 million vehicles in 2022, driven by premium brands.
- EU passenger car production share of global total was 18.5% in 2022.
- Romania produced 0.4 million vehicles in 2022, up 10% from 2021.
- In H1 2023, EU vehicle production fell 9.5% to 7.8 million units.
- Poland's production was 0.6 million units in 2022.
- EU truck production (over 3.5t) was 0.3 million units in 2022.
Production Interpretation
Despite a surging electric sparkle of hope, Europe's automotive engine continues to sputter with annual declines, as its powerhouse, Germany, valiantly tries to pull the rest of the continent along a potholed road of supply chain woes and economic headwinds.
Sales
- In 2022, the EU new car market registered 10.6 million units, down 10.9% from 2021.
- Battery-electric vehicles (BEVs) achieved a 13.5% market share in EU new car sales in 2023.
- Germany saw 2.8 million new car registrations in 2023, down 0.3%.
- EU hybrid-electric vehicle registrations rose 16.6% in 2023 to 2.1 million units.
- France registered 1.9 million new passenger cars in 2023.
- Plug-in hybrids (PHEVs) market share in EU reached 8.6% in 2023.
- Italy's new car sales totaled 1.5 million units in 2023, up 4.6%.
- In Q1 2024, EU new car registrations grew 2.3% to 3.2 million units.
- Spain saw 1.1 million new car registrations in 2023, up 13.6%.
- Diesel vehicles held 13.3% market share in EU new sales in 2023.
- In 2023, BEV sales in Germany reached 524,000 units, 15.9% share.
- EU petrol car registrations fell 18.5% in 2023 to 4.0 million units.
- Netherlands new car market was 0.4 million units in 2023, with BEVs at 24% share.
- In June 2024, EU new car registrations hit 1.3 million, up 4.4% year-over-year.
- Belgium registered 0.5 million new cars in 2023.
- EU LCV registrations reached 1.7 million in 2023, down 6.8%.
- Sweden's BEV share in new sales was 37.1% in 2023.
- In 2023, EU bus and coach registrations totaled 0.3 million units.
Sales Interpretation
Even as the overall market sputters and wheezes, the European car industry is undergoing a silent but serious heart transplant, swapping out its petrol and diesel ventricles for electric and hybrid ones at an increasingly brisk pace.
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