According to Reuters, Stefan Hartung, chief executive officer of German auto parts supplier Bosch Group, said that growth in the global automotive and commercial vehicle markets is expected to be very slow this year and next.
Stefan Hartung said in the off-site area of the IAA Transportation Trade Fair in Hannover, Germany, that the demand in the global automotive market is currently lower than what the automotive industry expected five years ago, in which the number of cars produced in Europe is expected to be a few million units less than the expected number 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 demand for cars.
Stefan Hartung also said that the growth of the global electric vehicle market will also slow down, but with consumers shifting to plug-in hybrids, global (including China) pure electric vehicle sales are still growing compared to last year.
Stefan Hartung said that Bosch will continue to pursue its electrification strategy, as 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) are likely to further layoffs.
In February, Bosch said it would lay off about 3,500 employees by 2027 in its appliance division. Then in April this year, Bosch warned of further cost cuts and layoffs.
Global automakers are scaling back their electrification targets as demand for purely electric vehicles is slowing due to a lack of affordable models, a slow rollout of charging stations, heightened trade tensions and increased competition from Chinese rivals.
European automakers are facing high labor and energy costs and growing competition with low-cost models from Asian rivals that are shipping more cars to Europe.
Earlier this month, Volkswagen, Europe’s top-selling automaker, said it was considering closing some of its plants in Germany to cut costs to compete with Asian rivals.