Europe threatens to continue to lose its leading position in the global automotive market. A current report by Acredia in cooperation with Allianz Trade shows that the European automotive sector faces serious structural challenges. While the global car market only grew by 1.7 percent in 2024, a slight increase of two percent is expected for 2025 – but supported by China (4.0 percent) and the USA (2.5 percent). Europe, on the other hand, remains with only 1.5 percent growth, in particular due to high production costs, innovation deficit and increasing customs disputes. “”The automotive industry is the backbone of the European economy. But due to a lack of investments in innovation and electromobility, we threaten to finally lose our lead
”Warns Gudrun Meierschitz, director of Acredia. “It’s time for a strategic change of course.”
Encourage instead of punishment
China dominates the EV market with a growth of 40 percent in 2024, while Europe is the only large market of falling EV sales. At the same time, Asian manufacturers benefit from the hybrid boom with an increase of 20 percent. “”China invests billions, the USA protect its markets – but Europe relies on fines instead of targeted support. That is not sustainable
”Warns Gudrun Meierschitz.
A 10-point plan for Europe’s auto industry is supposed to recover lost competitiveness: this includes targeted investments in battery and charging infrastructure, a slim model range and stronger international cooperation. Success models such as China ($ 231 billion funding), Norway (extensive charging infrastructure) and Tesla (technology leader with a few, efficient models) show the way. Now industrial policy is needed that specifically strengthens innovation and production to secure Europe as a automotive location.
New markets and investments
European car manufacturers have to reduce their model range to five to six competitive hybrid and electric vehicles and invest more in battery production and charging infrastructure in order to reduce the dependency on China. At least ten percent of sales should flow into research and development, while new markets such as India, Vietnam and South America offer growth potential. At the same time, political measures are required: 40 to 50 percent tariffs on imports with less than 75 percent European production share could bring in two billion euros annually. An investment package of 150 to 200 billion euros for charging infrastructure and a 15 percent purchase bonus for e-cars under 45,000 euros with European added value should drive electromobility. In addition, five percent of the EU horizon program for battery research, autonomous driving and recycling should be used to secure Europe’s innovative strength in the long term.
Act now – Europe’s future is at stake
The European automotive industry is at a historic turning point. Without targeted reforms, the market share threatens to shrink while China and the United States expand their management positions. “”Europe has to take control itself again. With the right mix of innovation, strategic investment and industrial policy support, the automotive location of Europe can not only survive, but flourish
“Says Meierschitz.
The entire study on the auto industry can be downloaded here (PDF).
About the Acredia Group
Acredia is Austria’s leading credit insurance and protects open claims at home and abroad over a total value of over 35 billion euros. Acredia is a subsidiary of Austria Control Bank AG and Allianz Trade, the world market leader in credit insurance. In 2023, the sales of the Acredia Group was 95.2 million euros. As part of the United Nations Global Compact, Acredia volunteered to organize strategy and business on the universal principles of human rights, work, environment and combating corruption and to take measures in order to advance social goals. www.acredia.at