Surpassing Italy in automobile production In 2025, Portugal surpassed Italy in total vehicle manufacturing volume, marking a significant milestone for the national industry. With production exceeding 341,000 units, including passenger cars, commercial vehicles, and heavy vehicles, Portugal rose to ninth place in the European ranking. Tis achievement highlights both the resilience of Portuguese factories and the structural challenges facing the Italian industry, which has been afected by declining domestic demand and delays in launching new models. Domestic growth Tis success is driven by an export-oriented growth model, with exports accounting for 97.8% of total production. Vehicles assembled in Portugal are primarily shipped to Germany, France, Spain, and Italy, underscoring the countrys strategic role in global value chains. Domestically, growth is also evident: in March 2026, new vehicle registrations increased by 9.1%, with electrifed vehicles accounting for 74.3% of those registrations. Hélder Pedro, Secretary-General of ACAP, notes that rising energy costs, infuenced by instability in the Middle East, may accelerate the shift toward alternatives to fossil fuels. Despite these record results, the sector faces signifcant challenges, including increased competition from Chinese brands and high logistics costs. European manufacturers such as Peugeot, Mercedes-Benz, and BMW continue to lead in sales, but brands like MG (up 172.9%) and BYD are quickly gaining market share through aggressive strategies and hybrid models. Íris Marçal Íris Marçal