Decrease in vehicle manufacturing in Portugal during the initial six months of the year
Portugal Sees Increase in Vehicle Production and Electric Vehicle Adoption
Portugal's automotive industry is experiencing a significant boost, with a surge in vehicle production and a growing focus on electric vehicles (EVs). Although precise figures for electric car production in Portugal are limited, the trends indicate a promising future for the country as a key player in Europe's EV landscape.
In June 2025, 26,438 passenger cars were produced in Portugal, marking an increase of 33.4% compared to the same month in 2024. The rise in production was also seen in light commercial vehicles, with 5,999 units produced, a 1.6% increase compared to the same month last year. However, the production of heavy vehicles saw a decrease, with 18 units assembled, a drop of 18.2% compared to the first half of 2024.
In a positive turn, June also saw a 0.8% decrease in overall automotive production in Portugal for the first half of the year, with a total of 177,825 vehicles produced. This decrease is likely due to the shift in focus towards electric and hybrid vehicles.
The growth in Portugal's EV market is evident in the 19% increase in total new registrations of light electric vehicles in June 2025. Tesla sales in the country rose 7.3% in the same month compared to June 2024. However, Tesla’s year-to-date sales in the first half of 2025 declined by 25.3% to 4,088 units, suggesting that the growth in the EV market is not solely driven by Tesla.
Portugal is positioning itself as a hub for EV manufacturing, with local production of budget-friendly EVs, electric buses, and electric ferries in urban centers like Lisbon and Porto. The country's grid, which is highly renewable (70-80%), complements EV adoption by lowering operational costs and emissions. Portugal is investing heavily in clean transport infrastructure and local EV manufacturing as part of a broader energy and economic transformation, aiming to drastically reduce fossil fuel dependency by around 2040.
The export market for vehicles manufactured in Portugal is diverse, with Germany, Italy, France, Turkey, and Spain being the top destinations. Germany accounts for 21.3% of the market share, followed closely by Italy (11.7%), France (10.6%), Turkey (10.4%), and Spain (9.5%). Europe remains the leading market for exports, accounting for 88% of the market share. Notably, 89.7% of the vehicles exported from Portugal are destined for Germany, with England accounting for 10.3% of the exports.
In a notable development, heavy vehicle production surged 197% to 392 units in June, despite a 18.2% decrease in the production of heavy vehicles from January to June 2025. The assembly of heavy vehicles in the first half of the year registered a 27.5% decrease compared to the same period last year, with 111 vehicles assembled.
In conclusion, while exact electric car production statistics for Portugal in 2025 are not explicitly detailed, the trends show strong domestic market growth, increasing EV registrations, burgeoning local manufacturing capacity focusing on electric and hybrid vehicles, and supportive renewable energy infrastructure. Portugal is positioning itself as a key player in Europe’s electric vehicle manufacturing and adoption landscape.
References: 1. Portugal's Electric Vehicle Market 2. Portugal's EV Manufacturing Hub 3. Portugal's Automotive Production Data 4. Portugal's Government Forecasts for EV Market
What is driving the increase in vehicle production in Portugal, particularly in the automotive industry?To what extent can Portugal's renewable energy grid contribute to the lowering of operational costs and emissions in the transportation sector, specifically for electric vehicles?How do the trends in electric vehicle production and registration in Portugal align with the country's ambitious goals of reducing fossil fuel dependency by around 2040?
