Automotive and mobility industry

The automotive and mobility sector is one of the most important industrial value chains in the Portuguese economy and one of the leading exporters. In 2022, seven of the top ten largest exporters of goods in Portugal were companies from the vehicle sector. This thriving sector encompasses a multitude of suppliers for the automotive industry, including major car manufacturers such as VW and Stellantis.

Portugal has a strong R&D and innovation ecosystem, based on an internationally recognized engineering education, which presents a highly qualified talent. The country’s strategic position makes it easier and faster to supply European Original Equipment Manufacturer (OEMs), such as Spain and France, where 2 million and 1 million vehicles are produced every year, respectively.

Recently, Portugal has been on the radar of several key international investors, namely through the successful creation and expansion of sophisticated engineering hubs performed by large OEMs or Tier 1 suppliers, such as BMW (through Critical Techworks), Mercedes, Volkswagen Digital Solutions, Daimler, Bosch and Continental Engineering.

Based on an excellent and export-driven metalworking industry, Portugal is the largest manufacturer of bicycles in Europe, in 2022, presenting a consistent growth over the last years.

Automotive industry | Vehicle production

There are 4 OEMs with production sites in Portugal that have already recognized the country’s potential by investing in new hybrid and electric vehicles.

The presence of 4 OEMs (Volkswagen, Stellantis, Mitsubishi Fuso Trucks and Toyota) demonstrates the country’s capability of producing quality products with a highly skilled workforce and productivity. In fact, Portugal and Spain combined are ranked 3rd in Europe in the vehicle production sector.

Through partnerships with technological companies, R&D centers and universities that are well-positioned in the field of automation and digital tools, OEMs have increased immensely their technology development with advanced production techniques.

Automotive industry | Vehicles components production

Portugal’s automotive suppliers’ sector is a highly exporting industry, offering production flexibility and efficiency to the most demanding markets.

The automotive supplier's industry represents most of the value added of the automotive industry in Portugal, producing €6,4B in turnover, in 2021. It exports almost all of its production to the main vehicle manufacturing countries in Europe (Spain, Germany and France) and the USA.

Portugal has strong capabilities in the metallurgical and mechanical, electric and electronic, plastic and rubber and textiles’ industries. Indeed, the automotive sector benefits from world-class molds and plastic injected for auto-manufacturers.

The vehicle components companies in Portugal leverage their cutting-edge technology to attain high operational efficiency and flexibility. These firms are well-positioned to adapt to emerging trends such as autonomous driving and connectivity, utilizing advancements in AI, virtual and augmented reality, and IoT.

Additionally, components companies are investing greatly in areas, such as electrification and green mobility, given its international importance.

Two-wheeler vehicles industry

Portugal is the leading bicycle producer in the EU, resulting from consistent investments in R&D and innovation during the last decade

The two-wheeler segment in Portugal, in 2021, comprised 69 companies (5% CAGR11 in 2017-21) and 2.889 employees (6% CAGR11 in 2017-21). This industry is mostly concentrated in the Center region of Portugal, which is responsible for 62% of the two-wheeler companies and 60% of the employees¹ .

Portugal is now the leading manufacturer of bicycles in the EU, supplying almost a quarter of the region’s bicycles, while also counting with one of the biggest bicycle manufacturing companies in Europe (RTE) and bicycle wheels’ producer (Rodi).

With the growing demand for e-bikes, companies are expanding their value chain. An example is Bosch, which has its Ovar and Braga units taking on an important role in the development and production of these technologies.

¹ Statistics Portugal (2021).

Did you know?

… the Portuguese Bike Value, created by ABIMOTA in 2015 (National Association of the Two-Wheeler Industry), aims to present the country’s potential promoting its technology centers, universities and local authorities, providing R&D support, product testing and supplying accreditations?

Engineering Centres

Portugal’s continuous investments on science and technology education offers unique skills to engineering centers.

Portuguese engineering is increasingly recognized as a reference that allies strong innovation capacity with competitive costs, which can be attested by the recent investments from BMW, Mercedes Benz, Volkswagen or Continental Engineering in Portugal.

This progress has been driven by strong and consistent investments in higher education in STEM areas and in R&D infrastructures throughout the past decades.

Strong partnerships between engineering companies and Universities, including engineering schools, are fueling the increasing demand for highly skilled work and R&D capabilities. For example, Bosch Car Multimedia and University of Minho have been partners in several relevant R&D projects over the last few decades having developed 70 registered patents, with an investment of €165M (until 2021).

Did you know?

… ATEC, created and promoted by Volkswagen AutoEuropa, Siemens and the German-Portuguese Chamber of Commerce and Industry, is a training academy to meet the needs of the industrial cluster in terms of staff training and qualification in the areas of automation, electronics and IT?

… CEiiA, an engineering and R&D center, created the Ayr Project (sustainability platform) that rewards individuals and communities that promote reductions on carbon dioxide emissions, was distinguished, in 2021, in the “European New Bauhaus Awards”?