Archive:International trade in cars

Data from June 2008, most recent data: Further Eurostat information, Main tables and Database.

Graph 1: EU and other major players in international motor car trade in 2006 (EUR billion)

The car industry is of prime importance to the economy of the European Union and plays a major role in external trade. New and used motor cars accounted for close to 6 % of the total value of all extra-EU exports in 2007, and well over 2 % of the total value of all extra-EU imports.

This article describes the development of trade in motor cars both within the EU (intra-EU trade) and outside of the EU (extra-EU trade). It shows that the USA and Japan are the EU's main trading partners while among EU Member States Germany is the leading exporter of cars.

Main statistical findings

Table 1: Extra-EU trade in motor cars with top 20 trading partners (EUR million)

Table 2: Extra-EU trade in total road vehicles (EUR billion)

Table 3: Extra-EU trade in total motor cars (EUR million)

In 2007, the EU exported motor cars worth EUR 71.1 billion. Imports in that same year amounted to roughly half that value (EUR 33.6 billion), giving an EU trade surplus of EUR 37.5 billion.

The value of extra-EU exports of motor cars increased by an average 6 % per year between 2000 and 2007. During the same period, extra-EU imports grew faster, at an average 8 % per year.

In 2007, the United States remained, by a large margin, the EU's main partner for motor car exports (35 % of the total), ahead of Russia (9 %) Switzerland and Japan (both 6 %). Since 2000, EU motor car exports to Russia have grown particularly rapidly.

Over a third (35 %) of all extra-EU motor car imports in 2007 came from Japan, followed by South Korea (20 %), the United States (19 %) and Turkey (13 %). Chinese imports, although at a low level in absolute terms, have increased fastest in recent years.

Within the broader ‘road vehicles’ category (which includes lorries, road tractors, motorcycles, trailers and motor-vehicle parts), motor cars represented 60 % of extra-EU exports and 57 % of extra-EU imports in 2007. Parts and accessories of motor vehicles had a share of 22 % and 21 % respectively.

Germany was responsible for over half (57 %) of total extra-EU motor car exports and was the only Member State to show a positive trade balance of noticeable size.

At the same time, Germany was also the biggest importer of motor cars in 2007; about one quarter of the total value of extra-EU imports can be ascribed to Germany, well ahead of Belgium, Spain and the United Kingdom.

Trading partners

In 2007, over a third (35 %) of extra-EU motor car imports came from Japan (see Table 1), well ahead of South Korea (20 %) and the USA (19 %). Imports from the USA and South Korea have been growing at an average 17 % and 10 % per year, respectively, between 2000 and 2007. Imports from Turkey increased much faster during the same period (+33 % per year on average). The strongest relative growth was registered for imports from China (+94 % per year between 2000 and 2007) but absolute values remained low.

The value of European motor car imports from the United States in 2007 was EUR 28.2 billion, while US imports were nearly four times that value, resulting in a EUR 81.3 billion US trade deficit. Conversely, Japan was the biggest net exporter with a trade surplus of EUR 69.2 billion. The EU trade balance for motor cars in 2006 showed a surplus of EUR 36.1 billion: exports worth EUR 68.1 billion stood against imports valued at EUR 31.9 billion (see Graph 1).

In 2007, the USA remained the number one partner for extra-EU exports with a share of 35 % (close to EUR 25 billion). At EUR 6.7 billion, Russia overtook Switzerland and Japan to became the second export market for EU cars (9 % share) due to a particularly strong growth (+34% per year on average between 2000 and 2007). Starting from a low level in absolute terms, exports to China displayed an impressive average growth rate between 2000 and 2007 of 46 % per year.

Contribution of Member States

Looking at the 2007 exports of motor cars by the individual Member States, Germany alone was responsible for well over half (57 %) of the EU total and was the only country to show a highly positive trade balance (EUR 32 billion – see last column of Table 3). The United Kingdom, ranking second, registered only a fifth of the German export value with a share of 12 %. In relative terms, i.e. compared to the total trade, exports of motor cars from countries, such as Slovakia, Austria and the Czech Republic were fairly significant.

Between 2000 and 2007, extra-EU exports grew particularly fast in Poland and Slovakia, although the shares remain of lesser importance (1.2 % and 2.7 %, respectively, of the EU total). Conversely, the value of car exports from the Netherlands dropped sharply over the period to reach EUR 281 million, less than a third of what it was in 2000 (EUR 1.1 billion).

With a value of EUR 8.3 billion, Germany’s share in total EU car imports was the most significant (25 % of the EU total), followed by Belgium and Spain, with shares of around 12 %. Looking at the development between 2000 and 2007, German imports displayed a continuous annual increase (6 % on average), with a sharp rise between 2005 and 2006. Romania stands out as the Member State where imports have experienced the most noticeable relative increase (50 % per year on average), followed by Slovenia (45 %).

Apart from Germany, ten other Member States featured trade surpluses in 2007. Conversely, Spain, the Netherlands, and Belgium registered large deficits, with values ranging between EUR 1.5 billion and EUR 1.3 billion.

Road vehicles

‘Road vehicles’ - cars and other motor vehicles, as well as cycles - represented 10.3 % (EUR 119.1 billion) of total extra-EU exports and 4.4 % (EUR 59.5 billion) of total extra-EU imports in 2007 (see Table 2). All subcategories of ‘road vehicles’ generated trade surpluses except ‘motor cycles and cycles’, which accumulated a deficit of EUR 4.4 billion.

‘Motor cars and other motor vehicles’ is the main category of ‘road vehicles’, with a share of around 60 % of exports and 57 % of imports. ‘Parts and accessories of motor vehicles’ follows with shares of around 20%.

In relative terms of exports versus , two sectors are noteworthy: ‘motor cycles and cycles’ are mainly imported (10 % of road vehicle imports), whereas ‘road vehicles, not elsewhere specified’, such as road tractors are mainly exported (4 % of road vehicles exports).

Data sources and availability

Products of the road vehicles sector are defined according to the fourth revision of the Standard international trade classification. They include divisions for 781 motor cars and other motor vehicles for transporting people; 782 motor vehicles for the transport of goods and special-purpose motor vehicles; 783 road vehicles, not elsewhere specified (tractors, etc); 784 parts and accessories of motor vehicles; 785 motor cycles and cycles, motorized and non-motorized; invalid carriages, as well as 786 trailers and semi-trailers.

EU data are compiled according to EU guidelines and may, therefore, differ from the national data published by the Member States.

Context

The automobile industry remains of prime importance for the EU, producing one third of the world total of cars. The industry accounts for 6 % of employment in the EU and is an important contributor to many of the EU's national economies. In Germany, for example, the industry's share in manufacturing as a whole is close to 20 %, according to the European Automobile Manufacturers' Association.

Trade in new and used motor cars accounts for a substantial part of the EU total, with close to 6 % of the total value of all extra-EU exports in 2007, and well over 2 % of the total value of all extra-EU imports.

The industry has suffered from the financial crisis which started in 2008 and is also under pressure from environmental regulation to curb tailpipe emissions.

Further Eurostat information

Publications

External and intra-European Union trade - data 2002-2007

Main tables

External Trade

External trade aggregated data (t_ext)

External Trade (t_externaltr)

External trade of machinery and transport equipment (SITC 7), by declaring country (tet00009)

Extra-EU27 trade of machinery and transport equipment (SITC 7), by main partners (tet00045)

Extra-EU27 trade of machinery and transport equipment (SITC 7), by Member State (tet00052)

Database

External Trade

External trade aggregated data (ext)

External trade long-term indicators (ext_lti)

Extra-EU trade of machinery and transport equipment (SITC 7) by main partner countries (ext_lt_mainmach)

Methodology / Metadata

External trade data (ESMS metadata file - ext_esms)