According to the Economic and Steel Market Outlook 2022-2023/Q1 2022 Report from the Economic Committee of the European Steel Association (EUROFER), automotive output in the EU fell by 14.4 percent year on year in the third quarter last year, following an exceptional increase of 70.5 percent recorded in the previous quarter. This has ended the positive growth trend seen since the fourth quarter of 2020, when the sector experienced a faster-than-expected rebound in activity from the lows seen in 2020.
According to EUROFER, ongoing disruptions on the supply side, in particular the shortage of semiconductors affecting the supply of vehicles, as well as hikes in energy prices and shipping costs went on taking a considerable toll on the automotive industry. This also contributed to the continued depressed demand and consumer uncertainty. According to the latest data, in 2021 passenger car registrations in the EU decreased by 2.4 percent, down to 9.7 million units.
EUROFER stated that the ongoing disruptions in the supply chain are expected to persist up to the second quarter of 2022. In addition, car demand is expected to be negatively impacted due to modest disposable income developments.
EUROFER expects automotive output in the EU to recover by 10.3 percent in 2022, followed by a six percent rise in 2023, both year on year.