The European automotive supply chain is facing mounting pressure from Chinese competition, rising imports and geopolitical uncertainty, according to Cosmin Bakai of Autoliv.
Speaking at the Eurometal Steel Day & YISAD Flat Steel Conference, Bakai highlighted that global vehicle production is expected to grow by only around 1.3% by 2030, while Europe’s market outlook remains largely stagnant.
A key concern is the rapid rise in component imports. China-origin automotive component imports into Europe reached $8 billion last year—nearly doubling in just three years.
Bakai emphasized that component trade is growing faster than vehicle trade, intensifying pressure on European manufacturers.
At the same time, European vehicle production is declining due to import competition, while Chinese automakers are steadily increasing their global market share.
Although Chinese companies are investing in new facilities across Europe—including Italy, Poland, Hungary, Spain and Turkey—these projects are initially small in scale and will take time to significantly impact demand.
The sector also faces additional risks from tariffs, protectionist policies, energy costs and geopolitical instability, all of which are expected to shape the future of Europe’s automotive and steel industries.
Bakai concluded that without supportive industrial and trade policies, a near-term recovery for Europe’s automotive and steel sectors remains unlikely.
VietnamSteel by Hoa Sen Group
