The Competitiveness of EU Member Statesin the Export of Electric and Hybrid Vehicles– With an Outlook on the Central and EasternEuropean Region

Abstract

Electromobility now defines the present and, according to current trends, the future of the automotive industry. This study focuses on the extent to which a demonstrable export advantage can be observed in the trade structure of European Union Member States regarding the international trade of alternatively powered (hybrid or fully electric) passenger cars compared to traditional internal combustion engine vehicles. The research aims to determine which EU Member States have developed a comparative advantage in the export of both conventionally powered and alternatively powered passenger vehicles. Furthermore, the study provides an in-depth analysis of three selected countries from the Central and Eastern European (CEE) region: Hungary, Slovakia, and the Czech Republic. The research question is addressed using various foreign trade indicators. The empirical analysis is based on data from the International Trade Centre (ITC) Trade Map database, utilizing the six-digit product codes of the Harmonized System (HS). To measure comparative advantage and competitiveness, this study employs Balassa’s Revealed Comparative Advantage (RCA) index, the Relative Trade Advantage (RTA) index, and Vollrath’s Revealed Competitiveness (RC) index. The results indicate that in 2024, depending on the methodology used, 11–12 EU Member States possessed a demonstrable competitive advantage in the export of conventional passenger cars, whereas for electric and hybrid vehicles, a competitive advantage could be identified for 6–8 countries. The analysis reveals a particularly strong and persistent export competitive advantage for Germany, Slovakia, Hungary, and the Czech Republic. The outstanding performance of the CEE region suggests that it plays a crucial role in European automotive value chains, not only in conventional vehicle manufacturing but also in the context