In this article, we will look at the 15 highest paying countries for automotive engineers. We have also discussed the global automotive market.
Recent Updates on the Automotive Market in 2024
The global trend of online car sales, offering the entire purchasing process digitally, is set for a substantial increase, projected to reach between 7.1 and 7.3 million units by 2024. Numerous electric vehicle (EV) manufacturers are embracing this shift towards online sales, making their offerings accessible in key markets worldwide. Leading this evolution is North America, commanding over a third of the global market share, closely followed by the Asia-Pacific (APAC) region, especially spurred by tech-savvy younger demographics. This phenomenon encompasses both new and used vehicles, with online platforms providing unparalleled convenience and transparency.
In 2024, Cox Automotive predicts a return to normalcy in the US auto market after the tumultuous years following the global pandemic of 2020. With slow economic growth projected, consumer spending may be limited, but the absence of a recession offers stability. Despite expectations of weak growth, unemployment levels are anticipated to remain low, supporting a healthy auto industry. This stability is welcome after years of unprecedented volatility.
Moreover, vehicle supply is expected to rebound in 2024, favoring consumers with increased inventory and downward pressure on prices. New-vehicle transaction prices are forecasted to decline moderately, with higher incentives and discounts contributing to improved affordability. The used-vehicle market is also expected to grow, albeit modestly, reflecting increased demand for certified pre-owned vehicles and a normalization trend in depreciation.
2024 is dubbed the “Year of More” for electric vehicles (EVs), with increased models, incentives, discounting, advertising, and sales efforts expected. Despite challenges in consumer acceptance, Cox Automotive anticipates EV sales to exceed previous records, with electric vehicles likely constituting over 10% of total sales.
Jobs in the Automotive Industry in 2024
In 2023, Toyota Motor Corp (NYSE:TM)’s investment in North Carolina’s battery factory increased to $8 billion, doubling jobs to 5,000 by 2025. With a total investment nearing $14 billion, it aims to sell 1.5-1.8 million electric/hybrid vehicles in the US by 2030, adding 8 production lines. North Carolina promises incentives for job creation and investment, anticipating a revival in the Greensboro area.
Moreover, Toyota’s $2.2 billion investment in Brazil aims to create 2,000 jobs and introduce hybrid and SUV models at its Sao Paulo factory. This strategic decision responds to global demands for eco-friendly vehicles, focusing on Toyota Motor Corp (NYSE:TM)’s commitment to sustainable transportation. The investment also confirms Brazil’s importance in the automotive industry’s future and Toyota Motor Corp (NYSE:TM) role in it.
On the other hand, Tesla Inc (NASDAQ:TSLA), the electric vehicle behemoth, is facing mounting concerns over potential job cuts as reports indicate the company is evaluating the necessity of each role. Amidst rumors, Bloomberg reveals Tesla’s query to US managers to assessing job criticality which has left employees anxious. With over 140,000 global employees, Tesla’s response to inquiries remains pending. CEO Elon Musk’s warning of sales slowdown and global competition exacerbates uncertainties. These anxieties coincide with a surge in US layoffs, reflecting economic challenges, automation trends, and cost-cutting measures across various sectors.
To read more about electric vehicles, see 20 Best Electric Cars of 2024.
How is an Automotive Engineer Different From a Mechnical Engineer?
Mechanical engineers have a broad skill set applicable across various industries. They design, analyze, and maintain mechanical systems, ranging from engines to machinery to thermal systems. Their expertise spans mechanics, materials science, fluid dynamics, and thermodynamics. It is worth highlighting that the US and Switzerland are the highest paying countries for mechanical engineers whereas countries like Australia and Canada are countries with the highest demand for mechanical engineers.
On the other hand, automotive engineers specialize in the design, development, and manufacturing of vehicles and their components. They delve deep into automotive systems, such as engines, transmissions, chassis, and electrical systems. Automotive engineers also prioritize aspects like vehicle safety, fuel efficiency, and environmental impact.
While both fields require a strong foundation in math and physics, automotive engineering typically involves more specialized coursework in automotive-specific topics like vehicle dynamics, powertrain design, and emissions control.
In terms of career opportunities, mechanical engineers have a broader range of industries to work in, including aerospace, manufacturing, and energy, whereas automotive engineers often find employment with automotive manufacturers, suppliers, or related industries. Ultimately, the choice between the two depends on one’s specific interests and career goals within the engineering field.
A driver standing in front of an electric car, demonstrating the company’s electric vehicle leasing capabilities.
Our Methodology
To list the highest paying countries for automotive engineers we identified the countries with the highest demand for automotive engineers and then made a list for 35 countries with the average salaries for automotive engineers. Of those 35, the 15 with the highest average salaries were selected and have been ranked. We acquired the data for average salaries of automotive engineers for each country from the Economic Research Institute (ERI). The list is presented in ascending order.
By the way, Insider Monkey is an investing website that uses a consensus approach to identify the best stock picks of more than 900 hedge funds investing in US stocks. The website tracks the movement of corporate insiders and hedge funds. Our top 10 consensus stock picks of hedge funds outperformed the S&P 500 stock index by more than 140 percentage points over the last 10 years (see the details here). So, if you are looking for the best stock picks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
Here is a list of the countries with the highest paying countries for automotive engineers:
15. Finland
Average Salary: $83,977
Finland is one of the countries that pay the highest salaries to automotive engineers because the country has a strong automotive engineering sector with advanced technology, innovative research institutes, and a focus on sustainable mobility. Its high-quality education system, supportive work environment, and emphasis on work-life balance make it an ideal choice for professionals seeking dynamic career opportunities in the automotive industry.
14. United Arab Emirates
Average Salary: $86,985
The UAE pays high salaries to automotive engineers primarily due to its robust economy fueled by oil revenue and diversified sectors like tourism and finance. With a burgeoning automotive industry and ambitious infrastructure projects, there’s a high demand for skilled engineers to design, develop, and manage advanced transportation systems and luxury vehicles.
With average salary of $86,985, UAE is one of the highest paying countries for automotive engineers in Asia.
13. Iceland
Average Salary: $87,847
It is one of the best countries for automotive engineering jobs as Iceland pays high salaries to automotive engineers owing to its small domestic market and the demand for specialized skills in industries like renewable energy, geothermal technology, and electric vehicle development. Additionally, the country’s high cost of living and need to attract talent contribute to competitive compensation packages.
12. Ireland
Average Salary: $87,906
Infineon Technologies, Germany’s leading semiconductor manufacturer, is set to solidify its R&D presence in Ireland, aiming to create over 100 automotive engineering jobs in Dublin and Cork over the next four years. The expansion reflects Infineon’s commitment to capitalizing on Ireland’s vibrant engineering ecosystem for automotive and consumer market innovation.
Infineon’s strategic focus on R&D in Ireland aligns with its mission to advance semiconductor-based solutions for clean, safe, and smart mobility. This initiative not only boosts job opportunities but also underlines Ireland’s pivotal role in shaping the future of automotive technology.
11. Netherlands
Average Salary: $90,817
In the Netherlands, the automotive engineering sector experienced a decline in job opportunities, with a reduction of 11.9 thousand full-time equivalent (FTE) positions from the peak year of 2018 to 2022. In 2022, the motor vehicle industry contributed 20.0 thousand FTE jobs, while supplying sectors witnessed 22.5 thousand FTE positions. Notably, employment agencies suffered the most, with a decrease of 3.7 thousand FTE jobs. Despite this decline, technical roles remained crucial, constituting 44% of hours worked in exports from the motor vehicle industry in 2021.
Despite the job losses, Netherlands is one of the highest-paying countries for automotive Engineers in Europe.
10. Austria
Average Salary: $91,140
Austria’s high demand for automotive engineers stems from its strong automotive industry, including companies like BMW, Magna Steyr, and AVL. With a focus on innovation and production of electric vehicles, Austria requires skilled engineers for research, development, and manufacturing, driving the demand for automotive expertise.
9. Norway
Average Salary: $91,987
Norway’s oil wealth also allows for generous compensation packages. Moreover, the scarcity of talent in this specialized field of automotive engineering contributes to competitive salaries. With a high quality of life and work-life balance, Norway is one of the best countries for automotive engineering jobs.
8. Germany
Average Salary: $93,318
Germany is the best country for automotive engineers as it offers unparalleled opportunities with its strong automotive industry. Companies like Volkswagen AG, BMW, and Mercedes-Benz are global leaders, providing a rich environment for skill development and innovation. The country has world-renowned engineering schools such as RWTH Aachen University and Technical University of Munich, fostering talent through cutting-edge research and education.
7. Australia
Average Salary: $94,477
With an average salary of $94,477, Australia is one of the countries that pay automotive engineers the most. In Australia, the University of Melbourne, Monash University, and the University of New South Wales (UNSW Sydney) are the top choices for automotive engineering education. The University of Melbourne has a strong reputation for its engineering programs, offering students a comprehensive curriculum that emphasizes innovation and research in automotive engineering.
6. Belgium
Average Salary: $97,516
Belgium has a strong automotive industry presence, with companies like Volvo, Audi, and others establishing significant operations there. This creates demand for skilled automotive engineers and hence, offer high salaries, making Belgium one of the countries where automotive engineers get paid the most.
5. United Kingdom
Average Salary: $102,803
The demand for automotive engineers in the UK remains strong due to several factors. Firstly, the automotive industry is a major contributor to the UK economy, with renowned companies like Jaguar Land Rover, Aston Martin, and Bentley operating within its borders. These companies constantly seek skilled engineers to design, develop, and innovate vehicles to meet evolving consumer demands and stringent regulations. Additionally, the rise of electric and autonomous vehicles has spurred further demand for engineers with expertise in these cutting-edge technologies. As a result, the limited pool of qualified automotive engineers drives up their salaries, reflecting the high demand and specialized skill set required.
Moreover, automotive engineering is a highly specialized field that demands a deep understanding of mechanical engineering, electrical systems, computer-aided design (CAD), and materials science. Engineers must also stay updated with the latest advancements in vehicle technology and industry trends to remain competitive.