Global Value Chain analysis of the EU automotive sector under the lens of Economic Complexity

This policy brief investigates the structural vulnerabilities and competitive dynamics of the EU27 automotive sector, with a focus on the complexity and the fragmentation of production processes across global value chains. The analysis integrates input-output tables to quantify the automotive sector's reliance on non-EU economic branches, alongside an economic complexity framework to assess the underlying productive capabilities of European countries in automotive-related industries. The findings indicate an increasing dependency on extra-EU suppliers, particularly China, for critical components such as lithium-ion batteries, which heightens supply chain risks. Currently, Eastern European countries-most notably Poland, Czechia, and Hungary-have enhanced their competitiveness in the production of automotive components, surpassing traditional leaders such as Germany. The policy brief offers new insights into the challenges posed by the ongoing electric mobility transition in the European Union, particularly in relation to electric accumulators.