European Automotive Industry in the Century of Asia

2 AUTOMOTIVE INDUSTRY IN THE EU

2.1 Motor Vehicle Production in the EU After the downturn caused by the economic crisis, which peaked in 2009, motor vehicle production in the European Union managed to resume growth in the following years. However, the sector then began to stagnate or even decline in the leading economies in 2018 and 2019. With the onset of the COVID-19 pandemic, the automotive industry, like several other sectors, faced major challenges. Government imposed restrictions and measures slowed or outright halted production in the seven months of 2020. In 2020, passenger car production in the EU27 fell by 23.5% compared to the previous year. Although EU Member States’ economies managed to recover and start growing in 2021 (EU economic growth in 2021 was 5.4% of GDP), the decline in production continued to deepen. In 2021, passenger car production in the EU fell by 6.7% compared to the previous year, amounting to 10,055,833 units. There were significant differences in passenger car production between EU Member States, reflecting, among other things, the measures taken to combat the epidemic. In 2022, passenger car production in the EU started to recover, increasing by 7.1% compared to the previous year to reach 10,769,893 units. Fig. 2.1: Development of passenger car production in the EU27 (million units)

Source: European Automobile Manufacturers Association (ACEA), S&P GLOBAL MOBILITY The total number of vehicles produced in the European Union declined by 5.7% year-on-year to 12.13 million units in 2021. In 2021, passenger cars constituted 82% of all motor vehicles produced in the European Union.

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