The EU automotive sector is bracing for its worst downturn since the Covid-19 pandemic, with car sales plummeting and no immediate recovery in sight, according to industry expert Ferdinand Dudenhoeffer.
Sales within the bloc have dropped by 200,000 vehicles in the first eight months of 2024 compared to the previous year, and the situation is expected to worsen. Electric vehicle sales have taken a significant hit, down 8.3%, with 140,000 fewer units sold.
Dudenhoeffer, founder of the Center for Automotive Research, warns that major markets like Germany and Italy are already experiencing declines, and car manufacturers are attempting to offset losses by raising prices.
Gasoline-powered models are now about 10% more expensive.
The expert predicts the industry faces an even more challenging period than during the pandemic, with Germany particularly vulnerable.
Volkswagen has already hinted at potential plant closures and layoffs, further reflecting the deepening crisis. A recovery in the market is not expected before 2026.
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