Stefan Hartung, CEO of Bosch, has projected minimal growth in the global automotive market for the remainder of this year and the next. In an interview with Reuters at the IAA Transportation trade fair in Hanover, Germany, Hartung indicated that demand in the automotive sector is falling short of what was anticipated five years ago.
Hartung noted that Europe is likely to produce several million fewer vehicles than previously forecasted, though he did not provide specific figures. He expects that it will take several years for the market demand to fully recover. European automakers are facing challenges such as high labor and energy costs and increased competition from lower-cost Asian manufacturers.
Volkswagen, Europe’s largest carmaker by sales, recently mentioned the possibility of shutting down some German plants for the first time in its history as part of a cost-saving initiative to stay competitive against Asian rivals.
Hartung also observed a deceleration in the growth of the electric vehicle (EV) market, although sales of battery electric cars are still increasing compared to last year, albeit at a slower rate. This slowdown is attributed to a shift in consumer preferences towards plug-in hybrids, especially in China. Bosch remains committed to its electrification strategy despite these market adjustments.
Hartung did not rule out potential job cuts at Bosch facilities due to delays in client orders for EV components. Earlier in the year, Bosch announced plans to reduce around 3,500 jobs in its home appliance division by 2027 and later warned of possible further cost-cutting and staff reductions.
Global automakers are revising their electrification targets due to slower demand for full EVs, driven by factors such as the lack of affordable models, slow expansion of charging infrastructure, trade tensions, and increased competition from Chinese manufacturers.
