Motoring Production Capitals

What are the car-building capitals of the world?

World auto production saw a significant decline in 2019, with global production decreasing more than 5% for the year. The year 2020 continued to see a decline in automobile production because of the economic crisis that began during the COVID-19 pandemic.

Here at GoShorty, we decided it was high time to take a closer look at the top car-producing countries of the world, now that the economic impact of the pandemic has had somewhat of a chance to recover.

We will look at a range of factors across Europe and beyond, from annual car production figures and numbers compared to previous years, to the number of people employed in the automotive industry.

At GoShorty, we provide affordable temporary car insurance, whether you need insurance to drive a car for an hour, a day, a week or a month. As we have an interest in the automotive world, we delved into the data to discover the motoring production capitals of the world.

Our statistics are based on data from the International Organisation of Motor Vehicle Manufacturers in 2021. We based our car production capitals on the total number of cars and commercial vehicles produced annually, and we found that the countries were geographically diverse in location. 

1 – China

Total Commercial Vehicles and Cars Manufactured in 2021: 26,082,220

China produced the most cars and commercial vehicles, with a total of 26 million manufactured in 2021. China is well known for being the world’s biggest manufacturer of cars and its domestic production is expected to reach 35 million vehicles by the year 2025.

2 – United States 

Total Commercial Vehicles and Cars Manufactured in 2021: 9,167,214

The United States produced the second-highest number of cars and commercial vehicles in 2021, with a total of 9.16 million vehicles manufactured. The General Motors Company is an American multinational automotive manufacturing company and is the largest automaker in the US.

In December 2021, President Joe Biden imposed a new executive order that states that by 2035, all new light-duty vehicles sold in the US must be 100% all-electric vehicles, to help with climate change and air pollution issues in the country.

3 – Japan

Total Commercial Vehicles and Cars Manufactured in 2021: 7,846,955

Japan is the third biggest car manufacturing country in the world, with a total of 7.8 million cars and commercial vehicles produced in 2021. In 2008, Japan’s car industry flourished, when Toyota surpassed American General Motors to become the world’s largest car manufacturer.

Japan’s market share has decreased slightly in recent years, due to new competition in South Korea, China and India. Automobile export remains the country’s most profitable industry and is a part of its recovery plan for the economic crisis of the pandemic.

We also wanted to take a look into the countries with the smallest car manufacturing industries. This ranking is based on the total number of cars and commercial vehicles produced in 2021:

1 – Serbia

Total Commercial Vehicles and Cars Manufactured in 2021: 21,263

Serbia had the smallest number of vehicles manufactured in 2021, with a total of 21,263 commercial vehicles and cars produced annually. The high point of the automotive industry in Serbia came in 1989 when Zastava produced 250,000 cars, which were exported to 70 countries all over the world, including the UK and the US. Political problems and economic sanctions imposed on the country during the 1990s halted the development of this export.

The break-up of former Yugoslavia had a huge impact on Zastava’s supply chain, leaving it with a depleted market. Since 2000, the Serbian automotive industry has rapidly re-emerged because of the privatisation process, and government support.

2 – Egypt

Total Commercial Vehicles and Cars Manufactured in 2021: 23,754

Egypt had the second lowest number of vehicles manufactured in 2021, with a total of 23,754 commercial vehicles and cars produced annually. 

Egypt’s automotive industry has been developing for 50 years. It can sell more than 200,000 vehicles annually and is now the second-largest market in Africa. Egypt’s car manufacturing industry has experienced many failures and successes but is now focusing on assembly operations, rather than car manufacturing.

3 – Kazakhstan 

Total Commercial Vehicles and Cars Manufactured in 2021: 92,417

Kazakhstan followed behind Egypt and Serbia for the third smallest number of vehicles manufactured in 2021, with a total of 92,417 commercial vehicles and cars produced. 

Kazakhstan’s automotive industry saw a substantial increase of 24 percent by the end of 2021 and its automotive industry is rapidly expanding. The country is set to launch electric vehicle car production this year.

We will now take a look into the countries seeing the highest percentage increases in car manufacturing compared to the previous year, 2020. 

1 – Argentina

% change in Variation in Car Manufacturing 2020/2021: 69%

Argentina saw the highest percentage increase in car manufacturing in 2021 compared to 2020, at a rate of 69%. Argentina’s motor vehicle production was reported at 434,753 units in Dec 2021. This records an increase from the previous number of 257,187 units for Dec 2020.

This year, Argentina’s Senate has approved a bill to promote the automotive industry. The initiative was spearheaded and supported by IndustriALL affiliates in the country.

2 – Indonesia

% change in Variation in Car Manufacturing 2020/2021: 63%

Indonesia had the second highest increase in car production in 2021 compared to 2020, at an increase of 63%. As well as being the fourth most populous country in the world, Indonesia is one of the largest car-producing countries in the ASEAN region. 

3 – India

% change in Variation in Car Manufacturing 2020/2021: 30%

India was the country that witnessed the third highest increase in car production in 2021 compared to the previous year, at an increase of 30%. Although India’s change in variation in car manufacturing is substantially less than in Indonesia and Argentina, the automotive sector is benefiting from a host of improvements. These include global supply-chain rebalancing and government incentives to increase exports.

We will now explore which countries had the biggest decreases in car production between 2020 and 2021.

1 – Slovenia

% Change in Variation in Car Manufacturing 2020/2021: -32%

Slovenia had the lowest increase in car production in 2021 compared to 2020, with a decrease in production of -32%. Slovenia’s motor vehicle production was reported at 95,797 units in Dec 2021. This records a decrease from the previous number of 141,714 units for Dec 2020.

Global car manufacturers like Renault have made plans to cut production in the country. Renault has cut production in its Revoz Slovenia unit and reduced its staff by 350 people.

2 – Canada

% Change in Variation in Car Manufacturing 2020/2021: -19%

Canada had the second biggest decrease in car production in 2021 compared to the previous year, a decrease in production of -19%. The low production numbers, down from 1.4 million in 2020 and close to two million in 2019, came as the global auto sector was hit by a shortage of semiconductor chips, caused by pandemic-related production issues and a surge in demand for electronics.

3 – Uzbekistan

% change in Variation in Car Manufacturing 2020/2021: -15%

Uzbekistan had the third biggest decrease in car production in 2021 compared to the previous year, a decrease in production of -15%. In 2021, Uzbekistan produced 236,667 passenger cars. That means that compared to 2020, production decreased by 15%. Despite the reduction in production, Uzbekistan increased the export of cars by more than a third.

With over 2.5 million manufacturing jobs in the automotive industry, we wanted to look at how many jobs account for EU manufacturing employment. This data from 2020 shows the share of direct automotive employment in total manufacturing for each of the 27 member states of the European Union:

1 – Slovakia

Share of Direct Automotive Employment in Total Manufacturing: 16.2%

Slovakia had the highest share of total manufacturing, and its automotive employment accounts for 16.2% of employment within total manufacturing employment.

The automotive industry is one of the key industries and a driving force of the economy in Slovakia. The country is the world’s biggest car producer per capita, as well as the 7th biggest car producer in the EU. Vehicle production accounts for 12% of the whole GDP and 35% of the exports in Slovakia, and the industry is a source of employment for more than 80,000 Slovakians. 

2 – Romania

Share of Direct Automotive Employment in Total Manufacturing: 15.2%

Romania had the second highest share of automotive manufacturing jobs, with a total of 15.2% of employment within total manufacturing employment. The car industry is very important to many EU countries, especially Romania, which ranks second in Europe.

Recent research showed that 15.2% of all employees in the Romanian manufacturing industry are directly involved in the automotive sector, including both the production of machines and production of components for them. 

3 – Czech Republic

Share of Direct Automotive Employment in Total Manufacturing: 13.8%

Czech Republic had the third highest share of automotive manufacturing jobs with a total of 13.8% of employment within manufacturing.

The automotive industry is one of the most important industries in the Czech Republic. It produces more than 20% of production volume and directly employs more than 120,000 people. At full capacity, the country produces more than 1.3 million passenger cars per year, which is a car every 23 seconds (as of 2017).  In total, the automotive industry accounts for 35% of the Czech economy.

3 – Sweden

Share of Direct Automotive Employment in Total Manufacturing: 13.8%

Sweden tied with Czech Republic for the third highest share of automotive manufacturing jobs with a total of 13.8% of employees in the Swedish manufacturing industry directly working in the automotive sector.

The automotive industry is of major importance to Sweden. The export share is large, and the country has a very special position in the global market with two large manufacturers of heavy vehicles.

We will now explore which countries in the European Union had the lowest share of direct automotive employment in total manufacturing. 

1 – Greece

Share of Direct Automotive Employment in Total Manufacturing: 0.5%

Greece had the lowest share of automotive manufacturing jobs with a total of 0.5% of employees in the manufacturing industry involved in automotive. The automotive sector in Greece is under the process of consolidation and debt restructuring. Importers are facing financial constraints and are seeking alternative development opportunities like spare parts trading, which shows significantly higher margins than auto imports.

Overall, the Greek automotive market remains underdeveloped and the car ownership levels are lower than in most of the EU countries, while constant taxation changes create an unstable market environment.

2 – Cyprus

Share of Direct Automotive Employment in Total Manufacturing: 0.5%

Cyprus had the lowest share of automotive manufacturing jobs alongside Greece, with a total of just 0.5% of employees in manufacturing working within the automotive sector. The automotive industry in Cyprus is one of the smallest within the EU, and it was severely hit by the financial crisis during the period of 2010 to 2013, before recovering and anticipating economic growth. 

Due to the COVID-19 Pandemic, annual sales for 2020 were just 10,061, reporting a decline of 17.7% compared to 2019.

3 – Croatia 

Share of Direct Automotive Employment in Total Manufacturing: 0.9%

Croatia had the second lowest share of automotive manufacturing jobs behind Greece and Cyprus, with a total of 0.9% of employees in manufacturing working within automotive services.

Research revealed that every year, 50.000 young people leave Croatia for other EU countries. In Croatia, the unemployment rate is one of the highest in the EU currently 7.3% and the youth unemployment rate is 20.9%. The automotive industry in Croatia employs around 10,000 people in over 130 companies.

Methodology:

We started by taking the International Organisation of Motor Vehicle Manufacturers’ 2021 PRODUCTION STATISTICS to get World Motor Vehicle Production figures, to find the total number of commercial vehicles and car production for each country. This data is accurate as of 01/11/2022.

Ukraine and Russia were omitted due to the ongoing conflict between the two countries.

We ranked our countries based on their total production of both commercial vehicles and cars in 2021. We were also able to rank these countries based on their % change in variation between the years of 2020/2021 to find which countries had an increase in the number of produced cars in recent years.

We used ACEA’s Share of direct automotive employment in the EU, by country, to find the total share of direct automotive employment in total manufacturing for each of the 27 member states of the European Union in 2020. We were able to rank each country by the share of automotive employment. This data is accurate as of 01/11/2022.