The automotive industry in the Netherlands
At first glance, the Netherlands doesn’t seem like a typical heavyweight in mass-produced passenger cars—but the country’s automotive industry plays a unique strategic role in Europe: as a supplier and technology hub, an export center, and an innovation laboratory for new mobility and environmental technologies. The Dutch automotive industry is well-connected, highly technology-oriented, and plays a key role in the European value chain.
1. Structure & Importance of the Industry
The Dutch automotive industry comprises a wide variety of companies — manufacturers, suppliers, commercial vehicle specialists, but also service providers, research institutes and mobility providers.
In total, tens of thousands of people are employed in the automotive industry — whether in manufacturing, supply, research or services — with the share of employment in supplier companies and technology centers being relatively high.
The sector is characterized by a strong export orientation: many products and components originate from the Netherlands and are delivered throughout Europe or globally — from classic car parts to high-tech components such as software, sensors or special vehicles.
This structure makes the Netherlands an important link in European automotive networks — even if they do not deliver the same production volumes as traditional large producers.
2. Manufacturers & Specialists – Who is involved
The country is home to several manufacturers and specialist producers — from commercial vehicles and specialty vehicles to niche providers of handcrafted sports cars. Examples include specialized manufacturers of light commercial vehicles or small-series production.
In addition, there is a strong supplier and component industry: Many companies supply international OEMs with parts, software, electronics, and specialized solutions—from transmissions and electronic modules to smart mobility services. This diversity makes the Dutch automotive industry particularly flexible and innovative.
Research and mobility innovations also play a major role — suppliers, universities, research centers and companies are working together on future-oriented solutions such as sustainable mobility, new drive systems, smart vehicle technology and services related to cars.
3. Electromobility, innovation and technological orientation
The Netherlands are among the pioneers in the field of electromobility and sustainable mobility concepts:
The share of new registrations with electric drive has increased sharply in recent years — electric cars are strongly represented in the Dutch market.
The industry is focusing on smart manufacturing, digitalization and sustainability: Many companies are modernizing their production processes, relying on recycling, modular manufacturing and flexible structures — in order to be able to respond to changing market demands.
The innovation landscape: The combination of industry, research, education and government initiatives forms a strong “triple helix” system — meaning that business, science and politics work closely together to drive technological developments, mobility solutions and sustainable production methods.
This positions the Netherlands not primarily as a mass producer of combustion engine cars, but as an innovation, technology and high-quality location for the European automotive industry.
4. Market, Demand & Mobility Behavior
The Dutch passenger car market is evolving — with a rapidly increasing share of electric vehicles and hybrid models. Electric cars are gaining more and more market share, reflecting demand, sustainability, and the changing landscape of mobility.
Mobility in the Netherlands is characterized by a high willingness to innovate, a partial abandonment of classic individual mobility, good infrastructure, strong urbanization of transport and openness to new mobility concepts — this makes the Netherlands an attractive market for new mobility solutions, car sharing, electric commercial vehicles or alternative mobility services.
For manufacturers and suppliers, the domestic market offers a good basis — however, exports and international networking remain crucial, as the Dutch market alone is not large enough to fully utilize industrial capacities.
5. Challenges & Risks
Even though the Dutch automotive industry has many strengths — the transformation brings challenges:
The decline in classic mass production (especially of combustion engine vehicles) makes traditional manufacturing and supply more difficult.
Competitive pressure from countries with low production costs, but also the growing global competitive pressure on suppliers and component providers, forces specialization and innovation investments.
Technological change (electromobility, digitalization, software, smart mobility) requires significant investments — especially for small and medium-sized enterprises to remain competitive.
Export pressure and dependence on global supply chains make the industry vulnerable to geopolitical and economic fluctuations.
6. Opportunities & Future Options
Despite the challenges, the Dutch automotive industry offers good prospects:
Innovation leadership : By combining research, industry, supply and mobility services, the sector can develop and export technologies for electric cars, sustainability, automation and new mobility concepts.
Niche manufacturing & special solutions : Small series, special vehicles, high-quality components or services offer opportunities for manufacturers and suppliers to position themselves in specialized segments.
Growth in electromobility & services : The growing market for electric vehicles, alternative mobility services, infrastructure and smart mobility solutions is opening up new business areas — nationally and internationally.
International networking & export strength : Thanks to a good export orientation and a strong network, Dutch industry can operate globally and benefit from trends in other markets.
Our conclusion:
The Netherlands is not a typical mass-market manufacturer—and that’s precisely its strength: With a focus on innovation, supply chain management, flexibility, and sustainability, the Dutch automotive industry is positioning itself as a key technology and export hub within Europe. The shift to electromobility and new mobility concepts presents a challenge—but also offers the opportunity to future-proof the industry.
