Automotive and mobility industry at a glance

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 multiple 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 can present highly qualified talent at competitive costs.

Recently, 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 witch increased, tremendously, the employment rate. Portugal´s strategic location makes it easier and faster to supply European OEMs, such as Spain and France where 2M and 1M vehicles are produced every year, respectively. 

Furthermore, Portugal is developing new infrastructures associated with new hydrogen, and the OEM is investing on new hybrid and electric models production, which is aligned with the electrification trends, this, being able not only to accommodate, but also to promote the global green transition. 

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. 

Main companies¹: Volkswagen, stellantis, Bosch Car Multimedia, Simoldes Group, RTE and Rodi. (SABI. Top 2 firms with highest turnover in each subsector (2021))

Main international investors²: Volkswagen (Germany), Peugeot Citroen (France), Bosch (Germany), Continental Mabor (Germany), FJ Bikes Europe (Taiwan), Bike Ahead (Germany) and Alubike (Spain).

Main exports’ markets³: Germany (23%), Spain (21%), France (13%), Italy (6%) and United Kingdom (6%).

1. ^{SABI. Top 2 firms with highest turnover in each subsector (2021)}
2. ^{SABI. Top 2 international firms with highest turnover in each subsector (2021).}
3. ^{Eurostat (2022); weight on total automotive and mobility industry exports.}
4. ^{Statistics Portugal and SABI (2021).}
5. ^{It concerns components and vehicles’ production.}

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 represent most of the value added of the Portuguese automotive industry. Portuguese vehicle production companies 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 4 OEM (Volkswagen, Peugeot Citroen, Mitsubishi and Toyota Caetano6 ) shows that Portugal can produce great quality products with a high skilled workforce and productivity. In fact, together Portugal and Spain, 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, these manufacturers have increased immensely the technology development with advanced production techniques.

The automotive component industry is a highly strategic sector with massive impact in other industries, such as electronics, molds, tires, textile, glass, plastic and rubber. Indeed, supported by a metalworking and plastics industry of excellence, automotive sector benefits of world-class molds and plastic injected for auto’ manufacturers of superior quality at a competitive costs.

6. Larger to smaller in order of the number of vehicles produced.

7. OEM that announced hybrid vehicles’ production.

8. Recently invested in Portugal.

9. Value added at factor cost generated by each monetary unit spent on personnel costs.

Did you know...

… Volkswagen Autoeuropa7 , in 2025, is going to produce a new hybrid model, investing €600M which is deemed crucial towards the continuous decarbonization trend…

… Continental Mabor 8 has developed a tire for light passenger vehicles produced with sustainable technology and recycled PET plastic bottles, which are only made in the Portuguese factory…

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 an 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, possible because of its assembly and components companies that produce great-quality products, 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 one of the biggest bicycle manufacturing company in Europe (RTE) and bicycle wheels producer (Rodi).

The growing demand for e-bikes enables well-equipped companies to further expand their value chain. The Portuguese market provides already stable production sites and production capacity alongside with the reputable and skillful workforce.

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 in Europe that manufacturers bicycles boards in carbon fiber.

10. Biggest bicycle production factory in Europe.

11. First factory to produce aluminum bike frames in a robotic way.

Did you know... 

… Portuguese Bike Value was created by ABIMOTA in 2015 (National Association of the Two-Wheels Industry), aims to present the country potential for location of industries, integration with technology centres, universities and local authorities, providing R&D and company insertion support, product testing and supplying accreditations.

…RTE10 is the biggest bicycle assembly production factory in Europe, producing 1.5 millions of bicycles per year…

…Triangle’s11 is the first factory in the world to produce aluminum bike frames in a robotic way, by using innovative technology of aluminum transformation, where the welding process is totally robotic…

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-standing “tradition” in automotive engineering in Portugal, as well as “new” players that have found in the country the right skills to develop innovative solutions for the future’s automobile.

Portuguese engineering is increasingly recognized as a reference that allies the innovation capacity with competitive costs. 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.

Did you know...

…Critical Techworks, a joint-venture of BMW12, is developing, since 2019, the BMW eDriveZones, an automatic system that allows for the most recent automatic models to pass automatically to electric mode as soon as the vehicle enters in a low CO2 emissions zone…

… ATEC created and promoted by Volkswagen AutoEuropa, Siemens, Bosch Termotecnologia and the German-Portuguese Chamber of Commerce and Industry, is a training academy, fully financed, towards the development of individuals professional activity in the areas of automation, electronics and IT.

… CEiiA, an engineering and developing 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”.

12. Innovating product with collaboration with international companies.

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.

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.

Since 2013, Bosch has partnered with University of Minho with an investment of €165M to create a smart, autonomous and connected vehicles.

Last updated: 15/05/2024