Portugal Overtakes Italy in Car Production

Portugal has surpassed Italy in automotive production, marking a significant shift in the industrial landscape of Southern Europe. According to reports from SIC Notícias, Expresso, and turbo.pt, Portuguese vehicle manufacturing exceeded that of Italy in 2025, with Portugal producing more than 240,000 cars during that year.

The development reflects a changing dynamic in European manufacturing, where Portugal has leveraged its industrial capacity to outpace a traditional automotive powerhouse. The reports identify Stellantis as a key entity involved in the automotive sector within this context.

Global Production Context

While the shift between Portugal and Italy represents a regional milestone, it occurs within a global market dominated by East Asian and North American producers. Data from the International Organization of Motor Vehicle Manufacturers (OICA) and other sources indicates that China remains the world’s largest producer. In 2025, China’s production reached 34,778,000 vehicles, which also represents its peak production year.

The United States maintains its position as the second-largest producer globally. In 2025, U.S. Production was recorded at 10,562,188 vehicles, following a 2024 output of 10,611,555 units.

Japan follows in third place, with 8,234,681 vehicles produced in 2025. India has also seen significant growth, reaching 6,014,691 vehicles in 2025, which marks its peak production year to date.

European Manufacturing Trends

Within Europe, Germany continues to lead the continent’s output. In 2025, Germany produced 4,069,222 vehicles, slightly down from 4,109,371 in 2024. Germany has also shown strength in export markets; reports from February 2026 indicate that Germany has led Turkish automotive exports with record-breaking figures.

Other notable European production figures for 2025 include:

• South Korea: 4,127,252 vehicles
• Mexico: 4,202,642 vehicles
• Spain: 2,376,504 vehicles
• Czech Republic: 1,458,892 vehicles
• Turkey: 1,365,296 vehicles
• France: 1,357,701 vehicles

The Czech Republic’s 2024 production of 1,458,892 vehicles represented its peak production year. Similarly, Malaysia reached a peak of 790,347 vehicles in 2024, and South Africa peaked in 2023 with 633,337 vehicles.

Industrial Shifts in Southern Europe

The transition of production leadership from Italy to Portugal is a notable economic trend for the region. The 2025 figure of over 240,000 cars produced in Portugal indicates a competitive edge in manufacturing efficiency or capacity utilization compared to the Italian automotive sector.

This shift is part of a broader trend of industrial reallocation across the European Union, where specific hubs emerge based on labor costs, logistics, and corporate investment strategies from conglomerates like Stellantis.

The global total for motor vehicle production in 2025 was 92,504,338 units, a slight decrease from the 93,546,599 units produced in 2024. This global environment underscores the importance of regional production gains, such as those seen in Portugal, as manufacturers seek to optimize their supply chains and production footprints.