European Car Manufacturing: How Germany and France Dominate the Sector

The Current State of the European Car Manufacturing Industry

Currently, no single manufacturer or country can be said to dominate the European automobile industry. However, when we look at manufacturing groups, a clear leader emerges. As of the first half of 2020, the Volkswagen Group led with a market share of 25.8%. This German conglomerate encompasses brands such as Volkswagen, Audi, SEAT, and Skoda, among others.

Second on the list is the PSA Group, with a 14.8% market share. PSA's prominent brands include Peugeot, Citroen, and Opel/Vauxhall, and it is a French company.

Renault Group claimed the third spot with a 10.3% market share. In Europe, the group's significant sales are driven by Renault and Nissan, both brands with French origins.

Complexities in Determining Country Dominance

How you interpret the data and what you consider as a "country" as a car manufacturer significantly influences the outcome. Furthermore, companies that are headquartered in specific countries but manufacture globally complicate the picture.

Volkswagen as the Largest European Manufacturer

By unit volume, Volkswagen is the largest car manufacturer in Europe. They compete with Toyota for the global title, both producing over 10 million vehicles annually. However, the complexity of global production comes into play. VW operates 122 plants across 31 countries, with 40% of production occurring in Asia. They also have significant operations in Brazil, the US, and Africa. The headquarters are in Germany, but the actual production is spread widely.

German Manufacturing Presence

Germany is home to the most car manufacturers globally, with companies like BMW and Daimler Benz among the prominent ones. However, a significant portion of their production occurs outside of Germany. For instance, BMW's largest plant is in South Carolina, USA, accounting for around 20% of their total production. Similarly, Daimler Benz's production is spread widely.

France: A Hotspot for Car Manufacturing

France is the second-largest producer of cars in Europe. Both PSA Peugeot/Citroen and Renault are major players. While these companies produce a considerable volume within Europe, they do produce a smaller percentage outside of the region compared to German companies.

Determination of Production Volumes

Estimating production volumes in Europe is challenging due to the lack of specific data. However, based on available data, Germany and France both produce approximately 5-6 million units within what they consider the EU and non-EU European countries.

Global Production Considerations

Many European manufacturers extend their production networks across the globe, including the EU, non-EU European countries, and other regions. This complicates the straightforward classification of production as coming from a single "country."

Conclusion

Despite the dominance of German and French companies, the global nature of production means it's challenging to attribute a clear advantage to a single country. Both Germany and France produce substantial volumes, and their strategies extend beyond the borders of a single nation, making the analysis multifaceted and dynamic.