German autos supplier Bosch CEO Stefan Hartung expects very little growth in car and commercial vehicle markets worldwide this year and next, he said in an interview with Reuters.
"Demand in the car market (globally) is lower than the industry expected five years ago," Hartung said on the sidelines of the IAA Transportation trade fair in Hanover, Germany.
Europe was expected to produce a few million fewer cars than projected five years ago, he said without giving specific details, adding it would take a few years for demand to recover.
The region's carmakers are struggling with high labour and energy costs as well as rising competition from lower cost Asian rivals shipping more cars to Europe.
Europe's largest carmaker by sales Volkswagen said early this month it was considering shutting some plants in Germany for the first time in its history as part of a cost-cutting drive to compete against Asian rivals.
Hartung also sees a slowdown in growth in the electric vehicle market, though he said battery electric car sales were growing compared to last year, albeit at a slower pace, as consumers shift to plug-in hybrids, including in China.
Bosch will continue pursuing its electrification strategy, as corrections on the market were normal, Hartung said.
He again would not rule out more job cuts at Bosch sites, including large ones, due to clients postponing their EV parts orders.
Europe's largest automotive supplier said in February it would cut around 3,500 jobs in the home appliance division by 2027, and later in April warned of more cost cuts and staff reductions.
Global automakers are scaling down their electrification targets, hurt by slowing demand for full EVs due to a lack of affordable models, slow roll-out of charging points, growing trade tensions and increased competition from Chinese rivals.
Bosch chief sees stagnating growth in car markets worldwide
Image: Newspress UK
German autos supplier Bosch CEO Stefan Hartung expects very little growth in car and commercial vehicle markets worldwide this year and next, he said in an interview with Reuters.
"Demand in the car market (globally) is lower than the industry expected five years ago," Hartung said on the sidelines of the IAA Transportation trade fair in Hanover, Germany.
Europe was expected to produce a few million fewer cars than projected five years ago, he said without giving specific details, adding it would take a few years for demand to recover.
The region's carmakers are struggling with high labour and energy costs as well as rising competition from lower cost Asian rivals shipping more cars to Europe.
Europe's largest carmaker by sales Volkswagen said early this month it was considering shutting some plants in Germany for the first time in its history as part of a cost-cutting drive to compete against Asian rivals.
Hartung also sees a slowdown in growth in the electric vehicle market, though he said battery electric car sales were growing compared to last year, albeit at a slower pace, as consumers shift to plug-in hybrids, including in China.
Bosch will continue pursuing its electrification strategy, as corrections on the market were normal, Hartung said.
He again would not rule out more job cuts at Bosch sites, including large ones, due to clients postponing their EV parts orders.
Europe's largest automotive supplier said in February it would cut around 3,500 jobs in the home appliance division by 2027, and later in April warned of more cost cuts and staff reductions.
Global automakers are scaling down their electrification targets, hurt by slowing demand for full EVs due to a lack of affordable models, slow roll-out of charging points, growing trade tensions and increased competition from Chinese rivals.
READ MORE:
China warns carmakers of risks in building plants overseas: sources
Stellantis pauses production of electric Fiat 500 due to poor demand
Lynk & Co won’t raise prices because of tariffs, says Europe CEO
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most read
Latest Videos