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We expect that production of new cars will start growing again.<\/p>\n
Despite the doom and gloom surrounding the European automotive sector, we expect that production of new cars will start growing again in the next years, with 2.4% growth in 2026 and 3.8% in 2027.<\/p>\n
However, the future is much bleaker than the past\u2014the number of cars produced in Europe will not return to the levels seen throughout the 2000s and 2010s.<\/p>\n
What you will learn:<\/p>\n
- \n
- We expect that the positive trend will be fuelled by a combination of increasing domestic demand, which should accrue disproportionately to domestic producers, and companies\u2019 progress in the EV transition.<\/li>\n
- One of the key headwinds is the transition to EVs: global demand for cars is being increasingly driven by this segment, and European car producers are lagging their Chinese competitors.<\/li>\n
- The other major headwind is on the domestic demand front. While part of the dramatic drop in car sales since Covid-19 (-19% from 2019 to 2024) is cyclical and will be reversed over the coming quarters and years, a portion can also be attributed to a lasting downshift in demand for cars.<\/li>\n
- Europe used to regularly produce over a fifth of the world\u2019s total cars, but over the long run, will now have to be satisfied with maintaining rather than growing output levels. We expect that it will record a steadily shrinking share of global production over the coming decades, from 15.4% in 2024 to 13.6% by 2050.<\/li>\n<\/ul>\n
You might also be interested in<\/p>\n
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