The automotive industry in Romania

Romania is one of the most important and fastest-growing automotive locations in Central and Eastern Europe. With two major OEMs, a dynamic supplier industry, a strong IT and engineering sector, and growing expertise in electromobility, the country has become an integral part of the European value chain.
The sector is one of the country’s most significant economic drivers and is currently undergoing a comprehensive modernization and electrification initiative.

1. Industry structure and key market players

Romania’s automotive sector is divided into two parts: strong vehicle manufacturers and a broad, export-oriented supplier landscape.

The two major OEMs

• Dacia (Renault Group) in Mioveni (Pitesti)
  The largest plant in the country and one of the most important locations of the Renault Group.

  • Focus on price-oriented models

  • Expansion of production of hybrid and electric variants

  • important engine and component manufacturing

• Ford Otosan in Craiova.
  Taken over from Ford to the Turkish manufacturer Ford Otosan.

  • Production of small cars and light commercial vehicles

  • Expansion of electric and hybrid manufacturing

  • planned expansion of supply chains in Romania

These two plants make Romania a fully-fledged OEM location within the EU.

2. Supplier industry and industrial base

Romania has more than 1,000 automotive suppliers that manufacture components for OEMs in Germany, France, Italy, the UK and the CEE region.

Key areas of the suppliers

• Cable harnesses, electrical engineering and sensor systems

• Plastic and metal components

• Chassis components

• Seats and interior parts

• Engine and transmission components

• Software and Engineering

Key international suppliers in Romania

• Continental

• Bosch

• Valeo

• Schaeffler

• Draxlmaier

• Leoni

• Flex

• Autoliv

• Pirelli (tire manufacturing)

Romania is a significant production location, especially for electronics, cable harnesses, engineering and cost-sensitive components .

3. Economic importance of the industry

The automotive industry is one of the central pillars of the Romanian economy:

• over 200,000 direct and indirect employees

• over 12% of GDP

• approximately 25% of exports

• Annual production of more than 500,000 vehicles

• continuous inflow of foreign investment

Its importance continues to grow due to the transformation to electromobility and digitalization.

4. Transformation to electromobility

Romania is increasingly investing in new technologies and the modernization of its factories.

Electrification of OEMs

• Dacia is expanding its electric model range, particularly in the price-oriented segment.

• Ford Otosan produces hybrid and electric models and plans further electrification projects.

Batteries and energy storage

Romania is actively working to attract investors for:

• Battery housing manufacturing

• Electric drive structures

• Components for cell and module technology

to attract. The proximity to Hungary (with several gigafactories) is an advantage for joint cluster solutions.

Digital Transformation

Many works implement:

• industrial sensors

• AI-based manufacturing control

• networked production systems

• Automation and robotics

Romania has an above-average strong IT sector, which facilitates the Industry 4.0 transformation.

5. Labor market and location factors

Strengthen

• high technical qualification in engineering and IT

• growing research capacities

• competitive labor costs

• strong English-speaking talent pool

• good industrial infrastructure in economic centers

challenges

• increasing shortage of skilled workers

• Rising labor costs, especially in the industrial center of Cluj and in the capital

• Partially overloaded transport infrastructure

• regional differences in education and industrial development

The government is promoting training partnerships and vocational schools to combat shortages.

6. Risks and structural challenges

Dependence on the European market

Romania exports the majority of its automotive products to the EU single market. Global crises have a significant impact on demand.

Internal combustion engine reliability

A large part of current production is still based on combustion engines. The transition to electric drives requires significant investment.

Hungary and Poland as strong competitors

These countries are currently securing many large investments in the battery sector. Romania needs to promote this more aggressively to avoid falling behind.

Supply chain vulnerability

Cable harnesses, electronics and mechanical components are susceptible to material and chip shortages.

7. Opportunities and growth prospects

Despite the challenges, Romania has excellent future prospects:

1. Strong IT sector as an advantage

Romania could become a leader in:

• • Vehicle software

  • Testing and validation

  • Connectivity

  • Smart Manufacturing

2. Expansion of e-mobility

OEMs and suppliers are increasingly investing in:

• • Hybrid and electric models

  • electric commercial vehicles

  • modular drive components

3. Location for nearshoring

Romania benefits enormously from the relocation of production chains back to Europe.

4. Qualified engineering landscape

The excellent training in mechanical engineering, computer science and electrical engineering strengthens the location sustainably.

Our conclusion

Romania has long been a key player in the European automotive industry. With two strong OEMs, a diverse supplier landscape, high IT expertise, and growing innovative capacity, the country offers ideal conditions for the electric age.

The main challenges lie in modernizing the value chain, competing for major investments, and combating the skills shortage.
If Romania consistently pursues its industrial and technology policy, the country can further strengthen its position as a high-quality and competitive automotive location in Europe.