Automotive and mobility

1. Portugal as an investment destination in the automotive and mobility industry

Portugal has great engineering capabilities in the automotive and mobility industries, developing new solutions for the future of smart mobility

The automotive and mobility sector is one of the most important industrial value chain in the Portuguese economy and one of the largest exporters. This sector comprises countless suppliers for the automotive industry, as well as some of the main car manufacturers, namely VW and Stellantis.

Portugal has a strong R&D and innovation ecosystem, with an internationally recognized engineering education which is capable of presenting highly qualified talent at competitive costs.

In the last few years, Portugal has been on the radar of international investors and the creation and expansion of engineering hubs performed by large OEM or Tier1, such as BMW (through Critical Techworks), Mercedes or Continental Engineering, has been successfully accomplished through high level of investments.

Based on an excellent and highly exporting metalworking industry, Portugal is also the main producer of bicycles in Europe, presenting a consistent growth over the last years.

Furthermore, Portugal is developing new infrastructures associated with new sources of propulsion energy, thus, being able not only to accommodate, but also to promote the global green transition.

Main companies¹: Volkswagen AutoEuropa, PSA Peugeot Citroen (Grupo Stellantis), Bosch Car Multimedia, Simoldes Group, RTE and Rodi.

Main international investors²: Volkswagen AutoEuropa (Germany), PSA Peugeot Citroen (France), Bosch Car Multimedia (Germany), Continental Mabor (Germany) and FJ Bikes Europe (Taiwan).

Main exports’ markets³: Germany (24%), Spain (18%), France (12%), Italy (9%) and United Kingdom (9%).

2. Why invest in Portugal’s automotive and mobility industry?

Automotive industries

Portugal’s automotive suppliers’ sector is a highly exporting industry, offering production flexibility and cost competitiveness to European and North American value chains

The automotive supplier's industry is the heart of the Portuguese automotive industry. Recognized as one of the best cost locations, Portuguese companies in this sector can ally the best quality standards required by the industry with high levels of efficiency and flexibility. Automotive suppliers' exports almost all production to the main vehicle manufacturing countries in Europe (Spain, Germany and France) followed by the USA.

The presence of some of the main OEM shows that Portugal can produce great quality products with best-cost labour and high skilled workforce and productivity. Through partnerships with technological companies, R&D centers and universities well positioned in the field of automation and digital tools, these manufacturers have increased immensely the technology development with advanced production techniques. This situation benefits other industries and sectors and the R&D levels associated to the development of innovative products/processes, thus contributing towards capturing new foreign investments.

Supported by a metalworking and plastics industry of excellence, the Portuguese automotive sector benefits of world-class molds and plastic injected for auto’ manufacturers of superior quality at a competitive costs.

Two-wheels vehicles industry

Portugal is the leading bicycle producer in the European Union, as a result of consistent investments in R&D and innovation during the last decade

The Portuguese two-wheels vehicle industry has been observing a steady growth rate with an impressive increase in its turnover and exports’ indicators. This can be explained by the continuous investments in relevant production technologies oriented to two wheels and other soft modes of transportation.

This upward slope of the two-wheels vehicle production is kickstarting Portugal’s journey to becoming one of the best. In fact, Portugal is now the leading producer of bicycles in the EU, supplying almost a quarter of the region’s bicycles, while also counting with the biggest bicycle manufacturing company in Europe (RTE) and the biggest European bicycle wheels producer (Rodi).

With a highly skilled workforce, automated machinery and technology support, many companies are boosting process innovations and presenting unique products/components. For example, Carbon Team is the first company outside Asia that manufacturers bicycles boards in carbon fiber.

Global concerns with climate change alongside with product/process innovations, drive companies to become better equipped to respond to the growing demand for higher-end bike, including electric models.

Engineering centers industry

Portugal’s continuous investments on core science and technology education is increasing high qualified workforce, offering unique skills at best cost

Portugal is a talent and innovation hub that is being used by automotive industry to develop solutions for the mobility of the future. In recent years, several relevant investments were made by companies with long “tradition” in automotive engineering in Portugal, such as Bosch Car Multimedia, as well as “new” players that have found in the country the right skills to develop innovative solutions for the future’s automobile (e.g. BMW, through Critical Techworks, Continental Engineering).

Portuguese engineering is increasingly recognized as a reference that allies the innovation capacity with competitive costs compared to other countries in Central Europe. 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.

A strong link between engineering companies and innovation ecosystems, including engineering schools, is 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 and boost the number of engineers over the last decades.

3. What are the recent FDI projects in Portugal?

Portugal has been on international investors’ radar, being the location selected for important projects and investments of foreign companies

Borgwarner

The American Borgwarner has invested €100M in a new plant in Viana do Castelo to produce motors for electric vehicles, creating over 300 new jobs.

According to the company, this investment is a clear demonstration of Portugal's attractiveness for high value-added projects and ensures a clear commitment with the future of electric mobility.

Stellantis

In 2023, Stellantis announced plans to manufacture EVs in Mangualde, thus becoming the first assembly plant in Portugal to build battery electric light commercial vehicles for
Citroën, Fiat, Opel, and Peugeot in large-scale production.

Stellantis Mangualde leads one of the mobilizing agendas for business innovation with the “GreenAuto” project, which brings together a consortium of 37 partner entities and represents a joint investment of €119m.

SRAM

SRAM has opened a new TIME pedal manufacturing plant in Coimbra in 2021.

The company stated that this investment will allow SRAM to continue and diversify its product line in the production of pedals, contributing to the development of the cycling industry in Portugal.

Bosch

The German company Bosch has, in 2018, established in Braga an R&D Centre for smart integration solutions for entertainment, navigation, telematics and driver assistance.

The company trusts the excellence of Portuguese engineers and believes that investing in this new facility will lead them to the greatest automation development.

Last updated: 15/05/2024