Portuguese Automotive Sector Faces Export Challenges

The Portuguese automotive component industry, crucial to the European market with its parts in 98% of European cars, is grappling with significant challenges. A predicted 4-5% decline in exports is anticipated due to waning demand and market downturns.

Despite a 4% increase in domestic car sales, the transition to electric vehicles (EVs) is fraught with hurdles. High EV costs, insufficient charging infrastructure, and regulatory environments benefit competitors, notably China.

This situation demands action from the European Union. Investment in training and supportive policies for EV adoption are essential.

The Automotive Industry Association, representing 350 companies and 64,000 jobs, emphasizes the need for a fair regulatory framework and infrastructure development to sustain competitiveness and meet electrification goals.