In 2018, car production on the European continent decreased by 1.7% compared to the year before, as a result of slowing demand in some Western European countries and the United Kingdom in particular. Outside of the European Union, passenger car output fell in Turkey (-8.6%) and Ukraine (-15.3%) but maintained strong momentum in Russia (+14.0%) as domestic sales recovered there. Passenger car production in North America totalled nearly 13 million units in 2018, or 1.3% less than the year before. US output, which accounts for more than 60% of the region’s total car production, also remained flat last year at around 8 million units. Production in South America, on the other hand, continued to grow (+3.9%), although at a slower pace than in 2017. Brazil was the main driver of this trend, with local output growing by 4.3% throughout 2018. Overall in 2018, Chinese passenger car output fell by 2.5%, with 23.1 million cars built last year. Despite weakening domestic demand and trade tensions with the United States, China managed to maintain its leading position as the world’s biggest producer of passenger cars, representing more than 29% of global production. Japan ended the year with 8.2 million units produced in total, more or less the same number as in 2017. South Korean production, on the other hand, decreased by 2.4% due to worsening economic conditions and trade uncertainties. Looking at the emerging markets, Thailand and Indonesia (both +7.3%) posted the highest production growth last year, followed by India (+3.4%) − all three benefitting from robust domestic demand and exports. In 2018, 78.9 million passenger cars were produced around the world, some 1.2% less than the year before.

Source: ACEA

 

 

 

• 13.3 million people – or 6.1% of the EU employed population – work in the sector.

 • The 3.4 million jobs in automotive manufacturing represent over 11% of total EU manufacturing employment. • 

Motor vehicles account for some €413 billion in tax contributions in the EU15. 

• The sector is also a key driver of knowledge and innovation, representing Europe's largest private contributor to R&D, with €54 billion invested annually.

 • The automobile industry generates a trade surplus of €90.3 billion for the EU.

 

 

Production of passenger cars in the European Union decelerated in 2018, as domestic demand weakened amid slowing economic growth and disruption caused by the introduction of the new WLTP emissions test. As a result, full-year production amounted to 16.1 million units, down 2.1% when compared to 2017 output. Nevertheless, the EU maintained its position as the world’s second largest producer of passenger cars, accounting for 20.5% of global car production in 2018. Looking at the main car-producing countries in Western Europe, output only grew slightly in France (+0.4%) but fell strongly in Italy (-10.2%), Germany (-9.9%) and the United Kingdom (-9.7%) last year. In Central Europe, Romania (+29.7%) and Slovakia (+9.8%) posted strong increases, but in 2018 car production dropped in Poland (-14.9%) and Hungary (-3.7%).

Source: ACEA

 

 

 

Overall trade results for 2018 show a slight decline in EU car export volumes (-1.6%) and a substantial increase in imports (+9.3%). A similar dynamic was observed in value terms. After peaking at €131.6 billion in 2017, the value of EU car exports fell to roughly €128 billion in 2018 (-2.9%). At the same time, the value of imports grew by 2.8% to reach €46 billion – the highest total on record to date. Nevertheless, international trade in passenger cars generated a large surplus for the European Union last year, amounting to almost €82 billion − although down by 5.8% compared to 2017.

Source: ACEA

 

 

 

Japan was the main country of origin of EU passenger car imports in 2018 − seeing increases of 2.9% in value and 6.0% in volume compared to 2017. Together, Japan, Turkey, South Korea and the United States accounted for almost 70% of the total EU import value last year. Throughout 2018, passenger car imports from most of the EU’s main partners increased substantially, most notably those from China, Mexico, South Africa and Morocco. By contrast, the value of car imports from the United States declined from €6.4 to €5.5 billion last year, down 13.7% compared to 2017.

 

 

 

In 2018, the United States remained the main export destination for EU-built cars, despite a slight decline in both volume (-1.8%) and value terms (-2.8%). The US accounted for 29% of the total EU export value, followed by China (17.5%) and Japan (6.6%). Together, these three countries made up more than half of the total EU export value of passenger cars last year. Looking at the EU's six biggest trading partners, only exports to Japan and South Korea grew (both in volume and in value terms). By contrast, car export volumes to China, Switzerland and Turkey in particular fell throughout 2018.