Portuguese Auto Market in 2025 is on the rise. Full-year sales rose by 7.3%, surging again despite the early-year contraction. EV sales grew by 29.9%, with BYD driving growth, soon to overtake Tesla.
Economic Environment
Portugal’s economic outlook remains relatively resilient, with real GDP growth projected at 1.9% in 2025 and strengthening to 2.2% in 2026 before easing to 1.8% in 2027. Growth is being driven primarily by robust domestic demand, supported by a tight labour market, rising minimum wages, income tax cuts and moderate inflation, which together are sustaining private consumption. Investment is expected to receive a temporary boost from increased disbursements of Recovery and Resilience Plan (RRP) funds in 2025–26, particularly through higher public investment. By contrast, export growth is likely to remain subdued amid weak external demand, elevated uncertainty and higher US tariffs, despite the relatively small direct exposure of Portuguese exports to the US market.
Inflation is projected to decline only gradually, reaching around 2% by 2027, reflecting persistent services price pressures and strong labour demand. Fiscal policy is expected to remain expansionary in 2026 before turning contractionary in 2027 as RRP funding phases out, underscoring the importance of fiscal prudence and structural reforms to sustain growth, boost productivity and keep public debt on a firm downward path.
Automotive Industry Trend and Outlook
Despite negative performance in the first months of 2025, the portuguese automotive sector is recovering, with full-year sales growing 7.3% and reaching 225,038 units.
Brand-wise, the leader was still Peugeot in 1st (+0.2%), followed by Renault -up 2 spots- in 2nd (+19.8%) and Mercedes -down 1 spot- in 3rd (+6.7%).
Dacia -down 1 spot- ranked 4th (+7.6%) followed by BMW in 5th (+4.9%), Volkswagen in 6th (+9.9%), and Toyota in 7th (-0.7%).
Citroen -up 1 spot- ranked 8th (-1.1%), followed by Nissan -up 2 spots- in 9th (+3.9%), and Kia -up 2 spots- which closed the top 10 (+2%).
Looking at specific models, reported in the dedicated article, the Renault Clio sold the most units, growing 28.3% and climbing 1 spot. The 2nd most sold car was the Peugeot 2008, despite falling 0.8% in year-on-year volume.
EV Market Trend and Outlook
Portugal’s EV sector defied the overall car market, growing 29.9% in 2025. Reaching a share of 19%, and with the highest EV penetration among southern european countries, Portugal is on track to become a regional leader in electric mobility.
Tesla was still the leader despite losing 22.3%, while BYD in 2nd seems to be eyeing future leadership, up 94.1% and 1 spot. BMW in 3rd also reporte notable growth, up 13.9%.
Medium-Term Market Trend
The Portuguese car market expanded significantly over the decade from 2014 to 2024. Starting at 142,826 units in 2014, it recorded a four-year growth streak, reaching a decade high of 228,323 in 2018, a cumulative increase of 59.9%.
The arrival of the COVID-19 pandemic in 2020 caused a sharp 35% contraction, pulling annual sales back down to 145,417 units. A modest recovery followed in 2021, with sales ticking up to 146,635 (+0.8%), and then growing another 6.6% in 2022 to 156,310 units.
Recovery gained momentum in 2023 with a 27.7% jump to 199,572 units, followed by a 5.1% increase in 2024 to 209,716 units. This rebound was driven by easing supply chain constraints, delayed consumer purchases from prior years, and supportive fiscal measures stimulating car demand.
Meanwhile, the Portuguese EV sector charted a markedly different trajectory. Apart from a temporary slowdown in 2020 due to COVID-19 (-12.1%), it posted uninterrupted growth throughout the decade. Key milestones included a 152.4% surge in 2018 and a dramatic 128.5% increase in 2023, which brought EV registrations to 26,142 units.
Growth continued in 2024, rising another 22.5% to 41,741 units, with battery electric vehicles capturing nearly 20% of the market. This expansion was fueled by government incentives, an expanding charging infrastructure, and a wider range of EV models entering the market.
Tables with sales figures
In the tables below we report sales for all Brands, top 10 Manufacturers Group and top 10 Models
