Car parts exports grow but costs rise

Albania’s car parts industry is still growing, but companies say rising costs are making it harder to compete.

Exports of machinery, equipment and spare parts, which include automotive components, reached about 39.7 billion lek in 2025, up around 6% from a year earlier.

The sector has grown strongly over the past decade, but exports are now close to their 2022 peak, showing that rapid growth has slowed.

Companies say a weaker euro, higher wages and higher transport costs linked to the Middle East conflict are cutting profit margins.

Some firms are still winning new contracts, including parts linked to electric vehicles.

But industry managers say Albania must now compete on speed, quality and productivity, not just low costs.

Source: Monitor.al