According to the Economic and Steel Market Outlook 2023-2024/Q4 2023 Report from the Economic Committee of the European Steel Association (EUROFER), automotive output in the EU increased by 9.5 percent year on year in the second quarter after rising by 14.8 percent in the previous quarter. This rebound was partly due to the low-base effect.
The automotive sector was affected more than any other steel-using sector during the pandemic, though its output rebounded in early 2021. Yet, the sector has been under pressure from severe disruptions in the supply chain, the uncertain outlook in the market, and low demand due to consumer uncertainty.
According to the latest monthly passenger car registrations data, in August passenger car registrations in the EU rose by 21 percent year on year to 787,626 units. The double-digit increase indicates that the EU auto sector is rebounding from last year’s component shortage.
Automotive output in the EU is expected to increase by seven percent in 2023, compared to the previous forecast of a 6.4 percent increase. However, output levels will remain relatively low in historical terms, far below the levels seen in 2018 and 2019, and the sector is projected to experience a 4.6 percent decrease in 2024.
