The automotive industry, a driving force of the European economy
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Article summary
Did you know that a car contains more lines of code than a commercial aircraft? That it is one of the most recyclable everyday products? Do you know the economic weight of the automotive industry in Europe ? Ahead of the Paris Motor Show, we invite you to discover a series of surprising facts and figures that offer a fresh perspective on the automotive industry. Dive into the expertise behind a sector where some of today’s most significant transformations are taking shape, often far removed from clichés and conventional wisdom. Ready to be surprised?
With 13.6 million jobs nearly 7% of total employment in Europe—and more than €400 billion in tax revenue each year, the automotive industry is one of Europe’s major economic engines. Far from being an industry of the past, the sector remains a lever for sovereignty, competitiveness and transformation. Through its industrial footprint and investment choices, Renault Group directly contributes to this European momentum. Here is a closer look.
Key takeaways
- 6 million jobs depend on the automotive industry in the European Union, representing 6.9% of total employment, including 2.5 million direct manufacturing jobs[1].
- With €84.6 billion invested in 2023, the automotive industry accounts for 34% of R&D investment by European companies—more than twice the amount invested by pharmaceuticals[3].
- Vehicles generate €414.7 billion in tax revenue each year in the EU’s main markets, including €94.6 billion in France[4].
- In France, the automotive industry employs 329,000 people and accounts for 1.1% of GDP[6].
- Renault Group has 39,000 employees across 17 sites in France and generates 35,000 indirect jobs among its suppliers; 69% of Renault 5’s value added* is generated in France[7].
- €13 billion invested in France since 2021, with a further €13 billion planned by 2030[9].
In Europe, the automotive industry carries considerable economic weight. One job in fourteen (6.9%) depends directly or indirectly on the sector 13.6 million people[1], according to the European Automobile Manufacturers’ Association (ACEA).
This figure covers two realities: direct and indirect jobs. Direct jobs are positions with vehicle manufacturers, which design vehicles, operate industrial sites, organise production and invest in technologies. Indirect jobs are generated among suppliers, subcontractors and service providers that produce the materials, parts, electronic systems, batteries and services required for vehicle manufacturing.
This value chain is what makes the automotive industry such a powerful engine of the European economy. Manufacturing accounts for 2.5 million jobs, but these are only the most visible part of the industry[1]. Within this industrial base itself, suppliers account for as many jobs as manufacturers: 1.19 million jobs are in parts and accessories, compared with 1.09 million in vehicle assembly. In addition, 4.2 million jobs are linked to sales, maintenance, repairs, fuel distribution or vehicle rental, while several million more depend on road transport, related services and infrastructure. In other words, the automotive industry is not limited to producing vehicles: it supports entire regions, sustains a vast industrial and service network, and forms a major foundation of European employment[2].
What the automotive industry contributes to the European economy
Employment is only one aspect of the automotive industry’s contribution to the European economy. Another is the wealth it creates and returns to society and this is where comparisons with other industries are particularly revealing. According to the European Commission’s 2024 EU Industrial R&D Investment Scoreboard, as reported by ACEA, EU vehicle manufacturers and suppliers invested €84.6 billion in research and development in 2023, accounting for 34% of all R&D investment by European companies[3]. This is more than twice the amount invested by pharmaceuticals and biotechnology (€40.1 billion), nearly four times that of technology hardware (€21.5 billion), and almost eleven times that of aerospace and defence (€7.7 billion)[3]. No other sector in the ranking reaches this level.
The industry also makes a major contribution to public finances. From vehicle purchases and fuel to maintenance, insurance and tolls, vehicles generate €414.7 billion in tax revenue each year in the EU’s main markets, according to the latest data compiled by ACEA for thirteen countries[4]. In France, this revenue reached €94.6 billion in 2023[4]. Vehicles therefore help finance public services far beyond the automotive industry itself.
Employment in France’s automotive industry
Looking more specifically at employment in France, vehicle manufacturing directly employs 215,000 people, representing 6.7% of national manufacturing employment[5]. Taking the entire industry into account, from design to recycling, INSEE (French National Institute of Statistics and Economic Studies) counted 4,080 companies and 329,000 employees working directly for the automotive sector at the end of 2023, generating €31.2 billion in value added equivalent to 1.1% of gross domestic product and 11% of French manufacturing value added[6]. Once again, the assembly plant is only the visible part of a much broader value chain: with 84,600 employees, vehicle manufacturing itself accounts for only one quarter of this workforce. The manufacture of components such as bumpers, tyres and dashboards employs 123,210 people[6].
Curbing deindustrialisation through direct and indirect jobs
Renault Group provides a clear example of how a manufacturer creates both direct jobs at its sites and indirect jobs among its suppliers. The Group has 39,000 employees in France across 17 sites, including nine plants, seven technical centres and its headquarters[7]. These sites produce Renault and Alpine vehicles as well as engines, chassis and components[7]. Renault Group’s workforce in France represents 39% of the Group’s total global employment, while France accounts for 22% of its worldwide sales and 21% of its production[8]. This gap shows that Renault Group maintains a larger industrial and engineering base in France than the French market’s share alone would suggest. In addition, the Group’s activities generate 35,000 indirect jobs within its French supplier network[7].
On the tax side, Renault Group’s contribution in France is significant: taxes and duties related to its operations amounted to €275 million, while social contributions and payroll taxes totalled €894 million for the 2025 financial year.
R5 E-Tech production line at the Douai plant, France
Preparation of after-sales parts orders, Renault Villeroy
Battery Chemistry Laboratory in Lardy, France
Employment hubs that strengthen economic sovereignty
Renault Group’s footprint in France extends far beyond assembly lines. A vehicle’s value is created well before it reaches the assembly line, starting in design offices and test centres. The Group carries out 60% of its research and development expenditure in France, at the Technocentre and the technical centres in Lardy and Aubevoye, placing the country at the forefront of innovation within Renault Group[9].
This footprint is supported by a long-term financial commitment. Since 2021, Renault Group has invested €13 billion in France. A further €13 billion is planned by 2030 to develop nine new models for the Group’s brands and four additional models for its partners[9]. For Renault 5 E-Tech electric, 69% of the value added* is generated in France[7]. This means that a large proportion of the wealth created by this vehicle from design and production to components and industrialisation is generated in France.
Renault Group driving simulator, Technocentre, Guyancourt, France
Test drive at Renault Group Technical Center in Aubevoye, France
Every French automotive plant attracts dozens of partners
An industrial site has an even greater impact on its region when it attracts production for other manufacturers. The Batilly, Maubeuge, Sandouville and Douai sites assemble vehicles for Nissan; Douai also assembles vehicles for Mitsubishi Motors, while Sandouville and Batilly produce light commercial vehicles for Renault Trucks[11]. In December 2025, Ford selected Renault Group to produce two electric vehicles in northern France, with the first expected to reach dealerships in early 2028[12]. The Group also supported the establishment in France of AESC’s battery gigafactory, close to the assembly lines[8][11]. Light commercial vehicles illustrate this approach. Renault describes itself as the only manufacturer to design and produce its entire range of light commercial vehicles in France: Kangoo in Maubeuge, Trafic in Sandouville and Master in Batilly[13]. The Batilly plant in Meurthe-et-Moselle the country’s only production site for large vans has 1,920 permanent employees and is recruiting 105 permanent staff in 2026 to strengthen its production capabilities[13].
These figures point to a simple reality: the automotive industry is not an industry of the past. It remains a foundation for jobs, innovation and sovereignty in Europe. This is the purpose of Renault Group’s ambition: to become Europe’s reference carmaker with a global reach, and thereby help ensure that the automotive industry remains a lasting engine of activity and prosperity for Europe.
* Value added is the wealth created by an economic activity: it is the difference between what the activity produces or sells and what it has to purchase in order to produce it.
Batilly light commercial vehicle plant, France
Nissan Micra unveiled at the Douai plant, France
FAQ
01
How many jobs depend on the automotive industry in Europe?
02
How many jobs depend on the automotive industry in France?
03
Where are Renault and Alpine vehicles manufactured in France?
04
What is an indirect job?
05
How much does the automotive industry contribute to public finances?
In 2023, the automotive industry in Europe accounted for 13.6 million jobs, or nearly 7% of total European employment, according to ACEA[1].
Vehicle manufacturing directly employs 214,958 people in France, according to 2023 Eurostat data compiled by ACEA[5]. Taking the entire industry into account, from design to recycling, Insee recorded 329,000 employees at the end of 2023[6]. Renault Group alone accounts for 39,000 employees and 35,000 indirect jobs[7].
Renault Group has nine plants in France, including Douai, Maubeuge and Ruitz within the ElectriCity cluster, as well as Sandouville, Batilly, Cléon and Le Mans[7][10]. The Kangoo, Trafic and Master light commercial vehicles are assembled in Maubeuge, Sandouville and Batilly[13]. These sites also produce vehicles for Nissan, Mitsubishi Motors and Renault Trucks[11]. Alpine vehicles are produced at Renault Group’s Douai and Dieppe plants.
An indirect job is a position created among a company’s suppliers, subcontractors and service providers as a result of the business it generates for them. In the European automotive industry, ACEA estimates that the industry supports 11.1 million indirect jobs, compared with 2.5 million direct manufacturing jobs[1].
Sources
[1] ACEA, The Automobile Industry Pocket Guide 2025/2026, pp. 5, 8 and 9, Eurostat 2023 data (provisional), European Union.
[2] ACEA, Pocket Guide 2025/2026, p. 10, automotive share of EU manufacturing employment, 2023.
[3] ACEA, Pocket Guide 2025/2026, pp. 73 and 74, based on The 2024 EU Industrial R&D Investment Scoreboard (European Commission), 2023 data.
[4] ACEA, Pocket Guide 2025/2026, pp. 6, 81 and 82, vehicle-related public revenue, latest available data by country (France: 2023).
[5] ACEA, Pocket Guide 2025/2026, pp. 11 and 12, direct employment in automotive manufacturing by country, Eurostat 2023 data (provisional).
[6] Insee, Insee Première No. 2083, “The economic weight of the French automotive industry: 329,000 employees and 1.1% of GDP”, 2 December 2025, 2023 industry survey.
[7] Renault Group, “Renault Group in France” brochure, July 2026, pp. 5, 9 and 26.
[8] Renault Group, renaultgroup.com magazine, “How Renault Group supports local industrial employment in France”, 13 July 2026.
[9] Renault Group, “Renault Group in France” brochure, July 2026, pp. 10 and 38; renaultgroup.com magazine, “Renault Group’s industrial footprint in France”, 17 July 2026.
[10] Renault Group, “Renault Group in France” brochure, July 2026, pp. 12 and 14.
[11] Renault Group, “Renault Group in France” brochure, July 2026, p. 19; 2025 Universal Registration Document, p. 46.
[12] Renault Group, press release, “Renault Group and Ford form a strategic partnership in passenger and commercial vehicles”, 9 December 2025.
[13] Renault Group, “Renault Group in France” brochure, July 2026, p. 15.
