EU Automotive Production Forecast
Decline and Recovery in Production:
EU automotive production is projected to decrease by 0.9 percent in 2026, a revision from a previous forecast of 0.2 percent. However, a recovery of 3.5 percent is expected in 2027, as highlighted in the European Steel Association’s (EUROFER) latest Economic and Steel Market Outlook for 2026-2027.
Challenges Facing Production:
Several factors are contributing to this revised outlook:
- Trade Uncertainty: Ongoing trade and geopolitical tensions.
- Rising Energy Costs: Elevated energy prices affecting manufacturing.
- Weak Consumer Demand: Slower adoption of electric vehicles.
Despite the anticipated recovery, output is expected to be well below pre-pandemic levels.
Car Registrations on the Rise:
In the first half of 2026, EU passenger car registrations rose by 5.7 percent year-on-year, bolstered by market support measures:
- Hybrid-electric vehicles: 37% of registrations.
- Battery-electric cars: 20.7% of registrations.
However, weaknesses in the automotive sector continue to stall recovery in steel-consuming industries. The combined steel-weighted output is expected to increase by 1.5 percent in 2026 and 2.5 percent in 2027, driven by sectors like construction and mechanical engineering.
For detailed information, you can read more on the SteelOrbis website.
