According to Reuters, Stefan Hartung, CEO of German auto parts supplier Bosch Group, said that growth in the global automobile and commercial vehicle market is expected to be very slow this year and next.
Stefan Hartung said in the off-site area of the IAA Transportation Trade Show in Hanover, Germany that demand in the global automobile market is currently lower than what the automobile industry expected five years ago, with the number of cars produced in Europe expected to be several million less than what was expected five years ago.
At the same time, he added that it will take several years for the market to return to its original level of car demand.
, Stefan Hartung also said that the growth rate of the global electric vehicle market will also slow down, but as consumers turn to plug-in hybrid vehicles, global sales of pure electric vehicles (including China) are still growing compared to last year.
Stefan Hartung said Bosch will continue to pursue its electrification strategy because it is normal for the market to adjust.
However, he reiterated that if customers delay orders for electric vehicle parts, Bosch factories, including large factories, may lay off further employees.
In February this year, Bosch said it would lay off about 3,500 people in the home appliance division by 2027.
Then in April this year, Bosch warned that it would further cut costs and lay off employees.
Photo source: Bosch, Due to a lack of affordable models, slow launches of charging stations, rising trade tensions and intensified competition from Chinese competitors, global automakers are scaling back their electrification goals as demand for pure electric vehicles is slowing.
, European carmakers are facing high labor and energy costs, as well as increasing competition from low-cost models from Asian competitors who are shipping more cars to Europe.
, Earlier this month, Volkswagen, Europe’s largest carmaker by sales, said it was considering closing some of its German plants to cut costs to compete with Asian rivals.
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