According to the Economic and Steel Market Outlook 2025-2026/Q2 2025 Report from the Economic Committee of the European Steel Association (EUROFER), in the fourth quarter of 2024 automotive output in the EU dropped by 11.8 percent year on year, slightly slower compared to the 15.6 percent decrease in the previous quarter.
Since the global economic outlook remains highly unpredictable for car manufacturers, new car registrations in the EU recorded a 1.9 decline year on year in the first quarter of 2025. Demand is projected to remain weak until the macroeconomic picture and consumer disposable income substantially improve.
The sector experienced a stronger contraction in output in 2024 at 9.7 percent, compared to the previous estimates at 8.7 percent. Forecast for 2025 has been revised as 2.6 percent decline, compared to the earlier expectations of 2.1 percent growth, as a result of increasing global uncertainty and very low confidence.