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How Italian car manufacturers contributed to the EU's automotive market?
The Automobile industry plays a significant role in enhancing a country’s economy as it is linked with multiple other industries too. This mobility sector is among the sectors having the highest number of employees, which enhances the employment rate along with the daily income of individuals. This mobility ecosystem gives rise to business growth in multiple other sectors including steel, chemicals, ICT, and a lot more, which makes a significant impact on a country’s economic growth. Let us try to understand the impact of the Italian Automobile market on the EU’s automobile market.
Significance of the European Market In the Automobile Sector
The European market is among the most significant markets on the global scale and among these markets, Europe’s automobile market marks a significant impact with its key benefits. These key benefits are listed below which would broaden your understanding of the impact of the Automobile industry on Europe’s economy.
The European Automobile market is the source of employment for over 13.8 million Europeans (direct and indirect jobs) which contributes around 6.1% of overall EU employment. Europe is the biggest private investor in the Automobile Research and Development sector to ensure its lead ahead of its competitors. The European Automobile Industry is the catalyst in multiple industries like chemicals, steel, ICT, mobility services, and much more. The Automobile Industry contributes over 7% of the EU’s GDP.
The European Automobile industry has a lot of potential, which can be justified by forecasts for the coming decade. With market leaders like Volkswagen, Daimler AG, Ford Motor Company, Toyota Motor Corporation, Honda Motor Company, and many more European Automobiles market size is expected to grow with a CAGR of 3.38% from 2020 to 2030.
Contribution of Italian Car Manufacturers in the European Automobile Sector
A clear image of the European Automobile market and its impact would have taken place in your mind, now let us narrow down the market to a single country with high potential in the Automobile Industry, Italy. Calling a country high potential without evidence is like playing a lost war, so here are some reasons that ensure the contribution of Italy to the EU’s automobile industry.
1. In terms of vehicle sales Italian market are 4th largest in Europe and 9th in the world
2. Italy’s market holds the 3rd position in the Eurozone and 8th on the global level with its GDP.
3. Italy is one of the countries with the highest patent growth rate which justifies its high investment in the Research and Development sector.
4. Italy’s Automotive market value turnover stands at $113.7 billion USD which constitutes 11% of manufacturing turnover
5. Italy’s Automobile industry contributes 6.2% to the country’s GDP.
These numbers display the potential and significance of Italy’s Automobile industry in the European economy. There are some other factors too which ensure its long-term growth and better returns in the coming decade.
What factors influenced the Italian car manufacturer’s impact on European Automobile Sector?
Multiple factors allow the companies to settle their faith in Italy’s automobile industry and some of them are discussed below. These factors would allow you to seek fundamental factors that would help in creating a long-term impact in the automobile industry.
Dedicated Research and Development
The dedicated research and development sectors allow the automobile industry to stay ahead of its competitors and work on advanced methods to minimize costs and induce the latest technologies.
Italy is home to a wide range of luxury cars that have made an everlasting impact on the automobile market. The focus on innovative designs and the creation of a luxury vibe allows them to stay at the top of the list.
A walk towards advancing sectors
Electric Vehicles have made quite a name for themselves in the automotive industry and continue to provide sustainable automobiles for the rising demand. The market projection of the electric vehicle market is around $7.50 billion in 2023 with a 9.3% contribution in the automotive sector. Italy’s focus on this sector makes it easier to stay ahead of its competitor and maintain a unique place for itself on the list.
These factors and numbers allow people to have a better understanding and faith in the Italian automobile market. In the coming decade, it is going to display a rise at a greater pace based on multiple factors and its dedicated focus on being an industry leader in the automobile market.
Frequently Asked Questions (FAQs)
The Automotive Market size in Europe was valued at USD 14.94 Billion in 2022 and the total Automotive Market in Europe . This market keeps on expanding and provide great potential for upcoming business opportuinties.
There are multiple branching to automotive industry with OEMs showing a potential growth. The demand and manufacturing had boosted exponentially with rising customer requirements.
Italy’s Automotive market value turnover stands at $113.7 billion USD which constitutes 11% of manufacturing turnover