Portuguese Auto Market in 2025 is bouncing back. Sales up to April rose 1.2%, while EVs surged 36.7%, with BYD closing in on Tesla for the top spot. Fiat and Renault also climbed the EV rankings, though not necessarily reflecting their overall performance.
Economic Environment
In 2025, Portugal’s GDP is forecast to grow by 2.4%, supported by strong momentum from Q4 2024 despite a less dynamic Q1. Inflation is expected to average 2.2% this year, slightly revised upward due to signs of economic strength and rising wages. Employment is at an all-time high, with unemployment at 6.5% in 2024, and projected to remain stable as job growth continues around 1.2% annually. Consumer spending remains resilient, especially on non-durable goods, even as business sentiment has slightly weakened.
Portugal’s current account surplus rose sharply in 2024 to 2.2% of GDP, driven by tourism, services exports, and a reduced energy deficit. Foreign debt levels have declined to their lowest since 2005, and net foreign investment liabilities also dropped significantly. Public debt closed 2024 at 95.3% of GDP and is projected to fall further to around 90% in 2025, thanks to strong economic activity and a positive primary balance.
Automotive Industry Trend and Outlook
Despite negative performance in the first months of 2025, the portuguese automotive sector is recovering, with sales growing 1.2% up to April 2025 and reaching 77,287 units.
Looking at cumulative data up to April 2025 brand-wise, the leader was still Peugeot in 1st (+5%), followed by Renault in 2nd (+2.7%) and Dacia in 3rd (+0.1%).
Mercedes ranked 4th (+4.3%) followed by BMW -up 1 spot- in 5th (+8.8%), Toyota -up 1 spot- in 6th (+1.8%), and Volkswagen -up 1 spot- in 7th (+14.9%).
Nissan -up 1 spot- ranked 8th (+13.1%), followed by Citroen -down 4 spots- in 9th (-25%), and Kia -up 1 spot- which closed the top 10 (+1.6%).
Looking at specific models, reported in the dedicated article, the Renault Clio sold the most units, growing 9.1% and climbing 2 spots. The second most sold car was the Peugeot 2008, growing 6.3% in year-on-year volume.
EV Market Trend and Outlook
Portugal’s EV sector defied the overall car market, growing 36.7% up to April 2025. Despite short-term headwinds, continued investment from French automotive firms, the country’s second-largest foreign investors, reflects strong confidence in the sector’s long-term potential.
Tesla was still the leader despite losing 26.7%, while BYD in 2nd seems to be eyeing future leadership, up 189.5% and 3 spots. BMW in 3rd and Citroen in 4th also reporte notable growth, up 15.2% and 94.7% respectively.
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
