COMPETITIVENESS OF EUROPEAN UNION'S AUTOMOTIVE INDUSTRY

Automotive sector plays a key role in the EU, that provides around 12,6 million jobs and creates 4% of the EU's GDP. The EU accounts 20% of global vehicles production, the EU's automotive sector is the largest private investor in R&D. EU policy aim to strengthen the competitiveness of the EU automotive industry. In 2014 European Automobile Manufacturers' Association (ACEA) presented policy manifesto, which pointed out three main pillars necessary to improve competitiveness of automotive industry. Those pillars are: driving innovation, fostering growth through international trade and building a supportive regulatory framework. The main goal of the article is to analyse competitiveness of the EU automotive sector. The economic performance of the EU automotive sector is evaluated. In the first part of the paper main indicators for automotive sector will be presented, for instance production, employment, trade. Authors will focus on innovation, as a key factor for economic growth. In second part of the article major challenges for automotive sector will be presented. The article is based on critical review of the literature of the subject and international reports and analysis. The statistical data is sourced from the main international statistics. Main research method employed are comparative studies. In conclusion authors emphasized that the main challenge for EU automotive industry is raising world share of Chinese automotive sector. In addition huge challenge will be adaptation new technologies - electric, hybrid and e-gas (CNG and NGV) cars, as this will require huge R&D investments. However this may gain the leadership position for EU in the global chain in automotive industry. This research can be used by policy makers in developing countries for the purposes of advancing conditions for automotive sector and stimulating economic growth.