EU is the largest exporter of motor vehicles in the world. The US is the largest importer

With a share of 11% of total extra-EU exports and 4.5% of extra-EU imports, the motor vehicle industry plays an important role in the economy of the European Union.

According to the European Statistical Office (Eurostat), the intra-Community space is the largest exporter of motor vehicles worldwide with total exports to non-EU countries amounting to 192 billion euros in 2016. The second largest exporter of cars in the world is Japan, with a total of 127 billion euros, followed by the United States, which had total exports of 109 billion euros in the same year.

Within the motor vehicles category (which includes passenger cars, lorries, road tractors, motorcycles, trailers and motor vehicle parts and accessories), motor cars represented 65% of extra-EU exports and 50% of extra-EU imports in 2016, while parts and accessories of motor vehicles had a share of 22% and 27% respectively.

In 2016, over half of all extra-EU motor vehicles imports came from three countries, respectively Turkey (20%), Japan (19%) and the United States (14%).

“In 2014, the EU imported more motor vehicles from Turkey than from Japan which had been the largest partner since then. Although Turkey’s share only grew slightly from 18% in 2013 to 20% in 2016, in absolute terms imports increased from EUR 9.5 to 15.3 billion. In the same period, EU imports from Japan in absolute terms grew somewhat less, from EUR 10.6 to 14.5 billion which led to a drop of Japan’s share from 21% to 19%. In 2016, the United States (14%), South Korea (10%) and China (8%) were the third, fourth and fifth largest partners from which the EU imported motor vehicles, remaining at the respective ranks since 2013,” Eurostat reports.

US, world’s largest importer of motor vehicles

The world’s largest car importer was the United States, with a total of 254 billion euros, more than three times as much as the second-place in this chapter, the European Union, which imported in 2016 motorized vehicles amounting to 77 billion euros, followed by China with 64 billion euros.

The United States was, in fact, the largest export market for the EU, accounting for a quarter of the EU’s exports of motor vehicles. On the second place was China, with 16%, followed by Turkey with 7%, and Switzerland and Japan, with a 5% share each.

Moreover, between 2013 and 2016, the United States registered the largest changes in shares regarding imports of motor vehicles from the EU (+5 percentage points), while Russia registered the largest decrease (-5 percentage points).

Germany is EU’s top exporter of motor vehicles

The main exporter of motor vehicles in the EU is Germany, accounting for more than half of the total extra-EU exports, respectively 53%. Germany was also the main vehicle importer, with a quarter of the EU total, respectively 19.4 billion euro in 2016, followed by Belgium (14%), the United Kingdom (12%) and Italy (10%).

“With EUR 83 billion Germany also had the largest trade surplus in the EU. At the same time, Germany was also the largest importer of motor vehicles in 2016; about a quarter of the total value of extra-EU imports can be ascribed to Germany,” Eurostat reports.

The United Kingdom, ranking second, had a share of exports accounting to 13%.

”Between 2013 and 2016 imports of motor vehicles increased in all but two countries (Croatia and Latvia). German imports displayed an average annual increase of 16%. Cyprus stood out as the Member State where imports have experienced the most noticeable relative increase (+41% per year on average), while Croatia (-14%) had the largest relative decrease”.

Car exports outside the EU increased by an average of 2% per year between 2013 and 2016, while imports increased over the same period at a much faster pace, with an average of 14% per year.

”About half of the EU Member States showed an increase of motor vehicles exports. Annual average growth rates were particularly high in Croatia (+41 %) and Slovenia (+22 %) although their shares remain of minor importance. Cyprus (+18 %) had the third largest growth rate. There were three countries whose exports dropped more than 10% since 2013: Portugal (-11%), Greece (-20%) and Lithuania (-36%),” according to Eurostat.

Eleven Member States featured trade deficits in 2016, Belgium (- EUR 5.0 billion) was only to exceed one billion. The largest trade surpluses in 2016 were achieved by Germany (EUR 82.9 billion) and the United Kingdom (EUR 14.6 billion).