Europe: Automotive Market Expected To Contract 10% This Year

Economedia reported on the 7th that the European Automobile Manufacturers Association (ACEA) said on Friday that the EU car market is expected to contract by 10% this year to 9.6 million vehicles, after predicting a market rebound. This forecast is down 26% compared to pre-pandemic 2019 data. According to ACEA, Brexit, the coronavirus pandemic, semiconductor shortages and the Ukraine crisis have hit the European automotive industry hard. The recovery of the automotive industry will require a number of framework conditions, such as greater resilience of European supply chains, EU-level legislation to ensure strategic access to the raw materials needed for electric vehicles, and accelerated expansion of electric vehicle charging infrastructure. The EU automotive industry is said to house 12.7 million employed people (direct and indirect), accounting for 6.6% of all jobs in the EU. 11.5% of jobs in EU industry (around 3.5 million) are in the automotive industry.