According to the Economic and Steel Market Outlook 2022-2023/Q2 2022 Report from the Economic Committee of the European Steel Association (EUROFER), automotive output in the EU fell for second consecutive quarter, decreasing by 14.6 percent year on year in the fourth quarter last year, following a decrease of 15.3 percent recorded in the previous quarter. The sector experienced a rebound starting from the third quarter of 2020, due to the end of lockdown measures, culminating in an exceptional increase of 65.0 percent in the second quarter of 2021.
Meanwhile, the continued supply chain issues experienced over the summer of 2021 increasingly resulted in a shortage of components and semiconductors, a rise in energy prices and production costs, and a slowdown in global trade. The invasion of Ukraine by Russia in late February 2022 has worsened the already subdued outlook even further. This situation also contributed to continued depressed demand and consumer uncertainty. According to the latest data, car sales in the EU fell by 12.3 percent in the first quarter of 2022 and by 20.5 percent in March alone, both year on year.
EUROFER stated that the ongoing disruptions in the supply chain are expected to persist at least throughout 2022.
EUROFER expects automotive output in the EU to grow by 4.9 percent year on year in 2022, despite the severe repercussions of the ongoing supply chain disruptions and the war in Ukraine. As for 2023, EUROFER expects it to be another difficult year for the sector, with a smaller growth in output by 0.8 percent year on year.