European Steel Association EUROFER in latest Economic & Steel Market Outlook 2023-24 has outlined that European automotive industry after a severe slump of 19% in 2020 due to the impact of the pandemic & modest rebound of 3% in 2021, is expected to experience growth again, albeit moderately, in 2022 at 2.7%, revised upwards from minus 1.7%, mostly as a result of the rebound from the very low output levels seen for several quarters since 2021. Growth is expected to continue, albeit more moderately, also in 2023 at 1.1%, provided that war related disruptions and uncertainty will ease substantially as a result of an improved economic and industrial outlook. However, output levels will remain rather low in historical terms and the sector will continue to be exposed to external factors, with a drop in output, albeit modest, foreseen for 2024 at minus 0.6%.EUROFER said “Major downside factors are expected to persist at least until the second quarter of 2023. In addition, subdued consumer confidence, due to modest disposable income developments, has continued to impact car demand since the second half of 2018.Overall, in 2022 the number of newly-registered passenger cars dropped by minus 4.6%, mainly due to the impact of component shortages in the first half of the year. Although the market improved from August to December 2022, cumulative volumes stand at 9.3 million units, the EU's lowest level since 1993. Commercial vehicle registrations dropped as well minus 15.6% in the first eleven months of 2022 compared to the same period of the previous year, recording also a year-on-year drop in November of minus 0.67%EUROFER said “Ongoing disruptions on the supply side, in particular the shortage of semiconductors, as well as the unprecedented hike in energy prices, went on taking a considerable toll on the automotive industry during 2022. This situation also contributed to continued depressed demand and consumer uncertainty. Supply chain issues and war-related disruptions, coupled with low consumer confidence and squeezed incomes due to high inflation and war-related economic uncertainty, have continued to weighing on vehicle output.”
European Steel Association EUROFER in latest Economic & Steel Market Outlook 2023-24 has outlined that European automotive industry after a severe slump of 19% in 2020 due to the impact of the pandemic & modest rebound of 3% in 2021, is expected to experience growth again, albeit moderately, in 2022 at 2.7%, revised upwards from minus 1.7%, mostly as a result of the rebound from the very low output levels seen for several quarters since 2021. Growth is expected to continue, albeit more moderately, also in 2023 at 1.1%, provided that war related disruptions and uncertainty will ease substantially as a result of an improved economic and industrial outlook. However, output levels will remain rather low in historical terms and the sector will continue to be exposed to external factors, with a drop in output, albeit modest, foreseen for 2024 at minus 0.6%.EUROFER said “Major downside factors are expected to persist at least until the second quarter of 2023. In addition, subdued consumer confidence, due to modest disposable income developments, has continued to impact car demand since the second half of 2018.Overall, in 2022 the number of newly-registered passenger cars dropped by minus 4.6%, mainly due to the impact of component shortages in the first half of the year. Although the market improved from August to December 2022, cumulative volumes stand at 9.3 million units, the EU's lowest level since 1993. Commercial vehicle registrations dropped as well minus 15.6% in the first eleven months of 2022 compared to the same period of the previous year, recording also a year-on-year drop in November of minus 0.67%EUROFER said “Ongoing disruptions on the supply side, in particular the shortage of semiconductors, as well as the unprecedented hike in energy prices, went on taking a considerable toll on the automotive industry during 2022. This situation also contributed to continued depressed demand and consumer uncertainty. Supply chain issues and war-related disruptions, coupled with low consumer confidence and squeezed incomes due to high inflation and war-related economic uncertainty, have continued to weighing on vehicle output.”
