Car Production in Portugal Increases 2.7% in 2025, But Faces Challenges

The last year has brought new growth in automobile production in Portugal, but the total remains below the pre-pandemic period. The association that represents the sector warns of risks of bureaucracywhich he says compromises the market.

In 2025, a total of 341,361 cars left factories established in Portugal, which means a year-on-year increase of 2.7%. Compared to 2019, however, there is a decrease of 1.3%. On the other hand, in the number of new registrations, data prior to the pandemic were surpassed for the first time.

According to data from the Automobile Association of Portugal (ACAP), revealed this Tuesday, the 10th, last year brought 225,039 new car registrations. At stake are increases of 7.3% compared to 2024 and 0.6% compared to 2019.

This is what the automotive market balance for 2025 carried out by ACAP indicates. The study is issued annually and naturally focuses largely on the electrification of the national vehicle fleet.

December 2025 was the month with the most registrations of 100% electric cars ever, on a national scale. A total of 5,590, which brought the total recorded that year to 52,256. At stake is a growth of more than ten thousand units, compared to 2024.

That said, electric passenger cars (BEV) already weigh 23.2% of the total number of new passenger cars registered. A fact that places Portugal above the EU average (17.4%)in sixth place among Member States and leading among southern European countries. Comparisons are based on data from the European Automobile Manufacturers Association (ACEA).

Regulations still create many barriers

“We are still full of bureaucracy”said Sérgio Ribeiro, president of ACAP, when presenting the report. A scenario that, according to him, “aggravates the uncertainties” felt by businesspeople.

“The automotive industry does its job, but its hands are tied”, according to the person in charge. Thus, it points to “politicians’ lack of correct priorities”in a criticism directed at the current Government and previous ones.

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