According to the Economic and Steel Market Outlook 2023-2024/Q2 2023 Report from the Economic Committee of the European Steel Association (EUROFER), automotive output in the EU increased for the third consecutive quarter by 6.8 percent year on year in the fourth quarter last year, following a rise of 20.3 percent recorded in the previous quarter.
According to EUROFER, despite the increases recorded over the last three quarters of 2022, output in the EU automotive sector remained well below the pre-pandemic levels, and even below the pre-2019 recession levels. Supply chain issues, war-related disruptions, high inflation and energy prices, and economic uncertainty continued to weigh on vehicle output in 2022.
EUROFER stated that major downside factors are expected to persist at least until the second quarter of 2023. Demand is anticipated to remain weak until the macroeconomic outlook improves. Growth is expected to be at 1.2 percent, compared to a 1.1 percent increase guidance in the previous report, provided that war-related disruptions and uncertainty will ease substantially as a result of an improved economic and industrial outlook. However, output levels will remain rather low in historical terms as the sector is expected to continue to be exposed to external factors. EUROFER expects automotive output in the EU to decrease by 1.8 percent in 2024.