EU automakers struggle to solve problems: conference

EU automakers are in a difficult position due to declining consumer demand for new cars and increased competition from technologically advanced Chinese suppliers, and they have little prospect of improving the situation. While large automakers have financial reserves, smaller auto parts manufacturers are feeling the brunt of this trend.

This was stated by the participants of the automotive session at the European Economic Congress in Katowice last week, which was attended by Callanish.

Compared to the peak reached before the pandemic in 2019, the annual number of new car registrations in the EU has decreased by about 2 million tons. "I don't see anything on the horizon that would indicate that we will be able to restore these 2 million registrations," said Jakub Faris, president of the Polish Automobile Industry Association. Poland, however, stands out from the general background, where a record number of passenger cars and light commercial vehicles were registered in 2025.

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Meanwhile, Chinese automakers have increased their EU market share from 2% in 2024 to 8% in 2025 and to 11% in the first quarter of 2026. "Competition is a normal part of our market, but it is developing very quickly," he said. The heads of Chinese automakers have stated that they intend to reach 15% in the short term. "This means that 1.5 million cars will not be produced in Europe".

"The state of the automotive industry in Europe as a whole poses many questions, dilemmas and problematic issues that we do not have an answer to," said Janusz Puzon, director of the Stellantis automotive plant in Tychy. Since the 1950s and 60s, the automotive industry has developed rapidly, mainly due to European technological solutions, but the situation is changing, which requires a struggle to maintain market share.

Consumer attitudes are also changing. Once upon a time, owning a car was "like a dream," he continued. "For many of us, many years ago, it was the only form of communication, it was something very important; but today, I have the impression that it has become an addition to a mobile phone or laptop."

From the point of view of auto parts suppliers, who have lost more than 100,000 jobs in recent years, "there is no particular idea[solution]at the moment," said Tomasz Beben, president of the Polish Association of Distributors and Manufacturers of Automotive Parts. The industry is in dialogue with the automotive industry and the European Commission, which has led to "the first signs of change."

He added: "We're talking about some form of local content to support the core of the automotive industry.