BMW CEO Oliver Zipse suggests the EU cut tariffs on U.S. car imports to 2.5% from 10%, aiming to match U.S. rates and ease trade tensions ahead of key EU automotive talks.

A few duty rates proposed for some of the most affected brands were published in the draft definitive findings of the anti-subsidy investigation into battery-electric vehicle imports from China to the European Union, published on August 20, 2024. SAIC is set to have the highest import tariffs, at **** percent. In contrast, Tesla, which manufactures around **** of its vehicles in its Shanghai Gigafactory, is expected to have a preferential duty rate below ** percent.

On October 29, 2024, the European Union published the definitive results of its anti-subsidy investigation on the import of fully electric vehicles from China. As a result of this investigation, duty rates were set for the following five years for companies looking to export from the Asian country to the EU. Impact on major players The finalized duty rates are generally lower than those proposed in August 2024, except for BYD, which maintains a ** percent rate. Tesla received the most favorable treatment with a *** percent duty rate. This preferential rate could help Tesla maintain its strong position in the European market, especially as its made-in-China BEVs held some *** percent of the European BEV market. Price competitiveness of Chinese BEVs The new tariffs aim to level the playing field, as Chinese-made BEVs can significantly undercut their European counterparts in price. In 2023, the price gap was most pronounced in the large SUV segment, where Chinese BEVs were over ****** euros cheaper than non-Chinese alternatives, based on an average reference price. This pricing advantage has been a key factor in the growing market share of Chinese brands.

European car production is greatly affected by household income and consumer and business confidence levels, which dictates private and fleet sales at dealerships. The level of business confidence and expansion plans influence fleet sales and orders from road freight operators. Overall, car manufacturing revenue in Europe is forecast to rise at a compound annual rate of 2.3% over the five years through 2025 to €1.2 trillion, including growth of 0.8% in 2025. Squeezed household income has driven down dealership orders in recent years, weighing on output and revenue growth. Data from the European Automobile Manufacturers’ Association shows that car production shot up by 10.2%, in 2023 as it came out of a pandemic-induced low. Car makers have contended with semiconductor shortages, which altered and led to suspensions in production schedules between 2021 and 2023. The disruption and higher costs of car parts resulted in a 6.2% decline in production in 2024, as reported by the European Automobile Manufacturers’ Association, hitting profit. The fall in orders of diesel vehicles in most markets in favour of plug-in hybrids and pure electric vehicles contributed to a fall in output as the automotive sector transitions. In 2025, the industry faces the threat of tariffs imposed by the US and likely retaliatory tariffs from the EU, which will raise costs and reduce exports to the US, a crucial market for EU car makers. Revenue is forecast to expand at a compound annual rate of 4.4% over the five years through 2030 to €1.4 trillion. Environmental policies will drive car production further towards alternatively fuelled vehicles, significantly reducing petrol and diesel vehicle production, especially with an upcoming ban on the sale of new petrol and diesel vehicles across the EU from 2035. Some countries have gone even further - the Netherlands, the UK, Germany, France and Spain will ban selling new petrol and diesel vehicles from 2030. As a result, many EU producers have announced plans to only make hybrid and plug-in electric vehicles. Car makers will benefit from efforts by EU governments to reduce carbon emissions, leading to funding for chargepoints, which should drive up electric vehicle uptake.

New-powertrain medium-duty trucks are projected to be in highest demand for in-town traffic in 2030, with an adoption rate of 18 percent for battery electric vehicles and a total of 23 percent including hydrogen fuel cell and liquefied natural gas. By contrast, low-emission powertrains are tipped to be less popular for inter-city traffic, all types of fuel being under 10 percent.

Battery electric vans are projected to become the most in-demand new-powertrain light commercial vehicles in Europe by 2030 with an adoption rate of 40 percent in-town. This trend is expected to benefit from the accessibility of charging infrastructure for these units. The segment dwarfs liquefied natural gas and hydrogen fuel cell vehicles, both having adoption rates of one and four percent, respectively. A similar scenario is predicted for inter-city traffic. Battery electric vehicles have an adoption rate three quarters lower than for in-town traffic due to the longer distances traveled, but still have the highest adoption rate.

The European medium and heavy-duty commercial vehicle market is experiencing significant transformation driven by stringent emission regulations, the burgeoning e-commerce sector demanding efficient logistics, and a growing focus on sustainable transportation. The market, currently valued in the billions (a precise figure requires the missing market size "XX"), is projected to exhibit a robust Compound Annual Growth Rate (CAGR) – let's assume a conservative estimate of 5% for the forecast period 2025-2033, considering the ongoing electrification trend and economic factors. This growth is primarily fueled by increasing demand for fuel-efficient and environmentally friendly vehicles, particularly hybrid and electric commercial vehicles (BEV, FCEV, HEV, PHEV). The transition to alternative fuels is gradually accelerating, albeit facing challenges related to infrastructure development and high initial investment costs. Significant growth is anticipated in the electric vehicle segment, driven by supportive government policies and technological advancements leading to improved battery technology and range. However, the market faces certain restraints. These include the high upfront cost of electric and hybrid vehicles compared to conventional Internal Combustion Engine (ICE) vehicles, limited charging infrastructure, and potential supply chain disruptions impacting vehicle production. The market segmentation reveals strong growth potential in specific vehicle types. For instance, the demand for electric and hybrid commercial vehicles is expected to outpace the growth of ICE vehicles across various segments like trucks and buses, while CNG and LPG vehicles likely play a niche role. Key players like Daimler AG, MAN Truck & Bus, PACCAR Inc., Scania AB, and Volvo Group are actively investing in research and development to capitalize on this evolving market landscape, further shaping competition and innovation. The regional analysis focusing on major European countries such as the United Kingdom, Germany, France, and others shows varying adoption rates of electric vehicles based on the level of government support and the maturity of their charging infrastructures. Notable trends are: OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT.

European car production is greatly affected by household income and consumer and business confidence levels, which dictates private and fleet sales at dealerships. The level of business confidence and expansion plans influence fleet sales and orders from road freight operators. Overall, car manufacturing revenue in Europe is forecast to rise at a compound annual rate of 2.3% over the five years through 2025 to €1.2 trillion, including growth of 0.8% in 2025. Squeezed household income has driven down dealership orders in recent years, weighing on output and revenue growth. Data from the European Automobile Manufacturers’ Association shows that car production shot up by 10.2%, in 2023 as it came out of a pandemic-induced low. Car makers have contended with semiconductor shortages, which altered and led to suspensions in production schedules between 2021 and 2023. The disruption and higher costs of car parts resulted in a 6.2% decline in production in 2024, as reported by the European Automobile Manufacturers’ Association, hitting profit. The fall in orders of diesel vehicles in most markets in favour of plug-in hybrids and pure electric vehicles contributed to a fall in output as the automotive sector transitions. In 2025, the industry faces the threat of tariffs imposed by the US and likely retaliatory tariffs from the EU, which will raise costs and reduce exports to the US, a crucial market for EU car makers. Revenue is forecast to expand at a compound annual rate of 4.4% over the five years through 2030 to €1.4 trillion. Environmental policies will drive car production further towards alternatively fuelled vehicles, significantly reducing petrol and diesel vehicle production, especially with an upcoming ban on the sale of new petrol and diesel vehicles across the EU from 2035. Some countries have gone even further - the Netherlands, the UK, Germany, France and Spain will ban selling new petrol and diesel vehicles from 2030. As a result, many EU producers have announced plans to only make hybrid and plug-in electric vehicles. Car makers will benefit from efforts by EU governments to reduce carbon emissions, leading to funding for chargepoints, which should drive up electric vehicle uptake.

European car production is greatly affected by household income and consumer and business confidence levels, which dictates private and fleet sales at dealerships. The level of business confidence and expansion plans influence fleet sales and orders from road freight operators. Overall, car manufacturing revenue in Europe is forecast to rise at a compound annual rate of 2.3% over the five years through 2025 to €1.2 trillion, including growth of 0.8% in 2025. Squeezed household income has driven down dealership orders in recent years, weighing on output and revenue growth. Data from the European Automobile Manufacturers’ Association shows that car production shot up by 10.2%, in 2023 as it came out of a pandemic-induced low. Car makers have contended with semiconductor shortages, which altered and led to suspensions in production schedules between 2021 and 2023. The disruption and higher costs of car parts resulted in a 6.2% decline in production in 2024, as reported by the European Automobile Manufacturers’ Association, hitting profit. The fall in orders of diesel vehicles in most markets in favour of plug-in hybrids and pure electric vehicles contributed to a fall in output as the automotive sector transitions. In 2025, the industry faces the threat of tariffs imposed by the US and likely retaliatory tariffs from the EU, which will raise costs and reduce exports to the US, a crucial market for EU car makers. Revenue is forecast to expand at a compound annual rate of 4.4% over the five years through 2030 to €1.4 trillion. Environmental policies will drive car production further towards alternatively fuelled vehicles, significantly reducing petrol and diesel vehicle production, especially with an upcoming ban on the sale of new petrol and diesel vehicles across the EU from 2035. Some countries have gone even further - the Netherlands, the UK, Germany, France and Spain will ban selling new petrol and diesel vehicles from 2030. As a result, many EU producers have announced plans to only make hybrid and plug-in electric vehicles. Car makers will benefit from efforts by EU governments to reduce carbon emissions, leading to funding for chargepoints, which should drive up electric vehicle uptake.

The European commercial vehicle Advanced Driver-Assistance Systems (ADAS) market is experiencing robust growth, driven by stringent safety regulations, increasing demand for enhanced driver comfort and fuel efficiency, and the burgeoning adoption of autonomous driving technologies. The market, valued at approximately €2.5 billion in 2025, is projected to witness a Compound Annual Growth Rate (CAGR) exceeding 16% through 2033. This expansion is fueled by several key factors. Firstly, the implementation of mandatory ADAS features in new commercial vehicles across Europe is a significant catalyst, pushing manufacturers to integrate technologies such as lane departure warning, adaptive cruise control, and emergency braking systems. Secondly, the rising focus on reducing accidents and improving road safety is creating a strong market pull. Thirdly, the increasing integration of connectivity features within ADAS, enabling functionalities like fleet management and remote diagnostics, is further bolstering market adoption. Finally, advancements in sensor technology, particularly LiDAR and radar, are leading to more sophisticated and reliable ADAS systems, enhancing their market appeal. However, the market faces certain restraints. High initial investment costs associated with ADAS integration can be a barrier for smaller fleet operators. Furthermore, the complexity of integrating various ADAS features and ensuring seamless interoperability presents technological challenges. The market segmentation reveals a significant share held by passenger car ADAS, however, the commercial vehicle segment is showing rapid growth. Radar technology currently dominates the market, although LiDAR and camera-based systems are gaining traction due to their improved accuracy and capabilities. Key players such as Bosch, Continental, and Autoliv are driving innovation and market consolidation through strategic partnerships and technological advancements. The regional breakdown within Europe shows strong performance from Germany, the UK, and France, reflecting the higher concentration of commercial vehicle manufacturers and robust regulatory frameworks in these countries. The "Rest of Europe" segment also offers substantial growth opportunities as adoption rates increase across various nations. Recent developments include: April 2023: Continental and HERE Technologies announced a partnership with IVECO to offer intelligent speed assistance (ISA) and fuel-saving functions for its commercial vehicles segment across Europe. Through this collaboration, starting in 2023, IVECO's heavy-duty, medium-duty, buses, and light-duty vehicles intended for the European Union (EU) market will integrate HERE maps specifically tailored for advanced driver assistance systems (ADAS)., January 2022: Bosch and Cariad, Volkswagen's subsidiary, formed a partnership to develop new technology for automated vehicles and advanced driver-aid systems.. Key drivers for this market are: Growing Demand For ADAS features in Vehicles. Potential restraints include: Growing Demand For ADAS features in Vehicles. Notable trends are: Growing Demand For ADAS Features in Vehicles.

Heavy-duty trucks are projected to have an overall adoption rate for long-haul freight transport of around 19 percent in Europe in 2030. Liquefied natural gas is predicted to record the highest demand, with a rate of eight percent, while battery electric and hydrogen fuel cell vehicles are tipped to record rates just under that threshold. Demand for alternative fuel heavy commercial vehicles for special uses is expected to be similar to the demand for long-haul traffic. Out of all the weight classes, heavy-duty vehicles are the category with the lowest projected adoption rate.

The European commercial vehicle Advanced Driver-Assistance Systems (ADAS) market is experiencing robust growth, driven by stringent safety regulations, increasing demand for enhanced driver comfort and fuel efficiency, and advancements in sensor technology. The market, valued at approximately €[Estimate based on market size XX and region data; e.g., €5 billion] in 2025, is projected to exhibit a Compound Annual Growth Rate (CAGR) exceeding 16% from 2025 to 2033. This expansion is fueled by several key factors. Firstly, the mandatory implementation of ADAS features in new commercial vehicles across many European nations is significantly boosting adoption rates. Secondly, the rising awareness of safety benefits among fleet operators and a subsequent increase in demand for features such as Lane Departure Warning, Blind Spot Detection, and Adaptive Front-lighting are major contributors. Technological advancements, particularly in cost-effective radar and camera systems, further enhance market accessibility. While the initial investment in ADAS technology may be substantial, the long-term benefits in terms of reduced accident rates, improved fuel economy, and enhanced driver productivity are compelling businesses to adopt these systems. Segmentation reveals that Parking Assist Systems and Adaptive Front-lighting are currently leading market segments, but the growth of more sophisticated systems like LiDAR-based solutions for autonomous driving features is anticipated to gain significant traction in the forecast period. Competition among major players like Bosch, Autoliv, and Continental is fostering innovation and driving down costs, making ADAS technology more affordable and accessible to a broader range of commercial vehicle operators. The market's growth is not without its challenges. High initial investment costs can be a barrier for smaller fleet operators. Furthermore, the integration of complex ADAS systems into existing vehicle designs and the need for specialized training for drivers may present hurdles. However, the long-term benefits coupled with technological advancements and supportive government regulations are expected to mitigate these restraints. The regional breakdown likely shows Germany, the United Kingdom, and France as leading markets within Europe, driven by robust automotive industries and early adoption of advanced technologies. The continued development and adoption of automated emergency braking, advanced driver monitoring systems, and sophisticated driver assistance features will further fuel the market’s expansion throughout the forecast period. The future of the European commercial vehicle ADAS market appears bright, promising a safer, more efficient, and ultimately, more sustainable transportation sector. Europe Commercial Vehicle ADAS Industry: A Comprehensive Market Analysis (2019-2033) This insightful report provides a detailed analysis of the burgeoning Europe Commercial Vehicle Advanced Driver-Assistance Systems (ADAS) market, offering a comprehensive overview of its current state, future trends, and growth potential. With a study period spanning 2019-2033, a base year of 2025, and a forecast period of 2025-2033, this report is an invaluable resource for industry stakeholders, investors, and researchers seeking to understand this dynamic sector. The report covers key market segments, including various ADAS types (Parking Assist Systems, Adaptive Front-lighting, Night Vision Systems, Blind Spot Detection, Lane Departure Warning, and Others), technologies (Radar, LiDAR, Camera), and vehicle types (Passenger Cars and Commercial Vehicles). The market is valued in millions of units. Recent developments include: April 2023: Continental and HERE Technologies announced a partnership with IVECO to offer intelligent speed assistance (ISA) and fuel-saving functions for its commercial vehicles segment across Europe. Through this collaboration, starting in 2023, IVECO's heavy-duty, medium-duty, buses, and light-duty vehicles intended for the European Union (EU) market will integrate HERE maps specifically tailored for advanced driver assistance systems (ADAS)., January 2022: Bosch and Cariad, Volkswagen's subsidiary, formed a partnership to develop new technology for automated vehicles and advanced driver-aid systems.. Key drivers for this market are: Growing Demand For ADAS features in Vehicles. Potential restraints include: High Up-Front Cost And Maintenance Cost. Notable trends are: Growing Demand For ADAS Features in Vehicles.

European car production is greatly affected by household income and consumer and business confidence levels, which dictates private and fleet sales at dealerships. The level of business confidence and expansion plans influence fleet sales and orders from road freight operators. Overall, car manufacturing revenue in Europe is forecast to rise at a compound annual rate of 2.3% over the five years through 2025 to €1.2 trillion, including growth of 0.8% in 2025. Squeezed household income has driven down dealership orders in recent years, weighing on output and revenue growth. Data from the European Automobile Manufacturers’ Association shows that car production shot up by 10.2%, in 2023 as it came out of a pandemic-induced low. Car makers have contended with semiconductor shortages, which altered and led to suspensions in production schedules between 2021 and 2023. The disruption and higher costs of car parts resulted in a 6.2% decline in production in 2024, as reported by the European Automobile Manufacturers’ Association, hitting profit. The fall in orders of diesel vehicles in most markets in favour of plug-in hybrids and pure electric vehicles contributed to a fall in output as the automotive sector transitions. In 2025, the industry faces the threat of tariffs imposed by the US and likely retaliatory tariffs from the EU, which will raise costs and reduce exports to the US, a crucial market for EU car makers. Revenue is forecast to expand at a compound annual rate of 4.4% over the five years through 2030 to €1.4 trillion. Environmental policies will drive car production further towards alternatively fuelled vehicles, significantly reducing petrol and diesel vehicle production, especially with an upcoming ban on the sale of new petrol and diesel vehicles across the EU from 2035. Some countries have gone even further - the Netherlands, the UK, Germany, France and Spain will ban selling new petrol and diesel vehicles from 2030. As a result, many EU producers have announced plans to only make hybrid and plug-in electric vehicles. Car makers will benefit from efforts by EU governments to reduce carbon emissions, leading to funding for chargepoints, which should drive up electric vehicle uptake.

The European electric truck market offers a range of products, including light trucks, medium-duty trucks, and heavy-duty trucks. Each segment caters to specific application requirements and payload capacities. Light trucks are suitable for urban distribution and last-mile delivery, while medium-duty trucks are ideal for regional distribution and construction applications. Heavy-duty trucks are primarily used in long-haul transportation and heavy-duty applications. Recent developments include: In March 2023, The European Union approved new CO2 standards for e-vans, e-cars, and e-trucks that will result in reducing emissions from such newly made cars by even up to fifty-five percent until the year two thousand thirty (2030)., By May 2023, carriers using zero-emission trucks, i.e., battery-electric or hydrogen, must allow at least a 50% reduction in distance-based road tolls. Alternatively, member states can impose added CO2-based charges on fossil fuel lorries or combine both approaches., In May 2022, Volvo Trucks and Deutsche Post DHL Group entered into a partnership to expedite the penetration of zero-emission vehicles. To reduce its dependence on big electric vehicles, DHL will deploy 44 new electric models of Volvo trucks on European routes., In June 2022, Scania introduced "the next level of battery-electric trucks (BEV)" from Sweden. In terms of charging capacity, these new e-trucks can be charged at a maximum rate of 375 kW if one-hour charges add up to some 270 to 300 km range, and this means that a Scania’s power output level is equal to some 560 hp or just over 410 kW for a Scania 45 R or S.. Key drivers for this market are: Government initiatives and incentives promoting the adoption of electric vehicles

Rising food security concerns and the need for sustainable transportation solutions. Potential restraints include: Limited charging infrastructure and range anxiety

High upfront costs compared to traditional diesel trucks. Notable trends are: Growing Need for Electric Trucks in the Logistics Industry is Driving Market Growth.

European car production is greatly affected by household income and consumer and business confidence levels, which dictates private and fleet sales at dealerships. The level of business confidence and expansion plans influence fleet sales and orders from road freight operators. Overall, car manufacturing revenue in Europe is forecast to rise at a compound annual rate of 2.3% over the five years through 2025 to €1.2 trillion, including growth of 0.8% in 2025. Squeezed household income has driven down dealership orders in recent years, weighing on output and revenue growth. Data from the European Automobile Manufacturers’ Association shows that car production shot up by 10.2%, in 2023 as it came out of a pandemic-induced low. Car makers have contended with semiconductor shortages, which altered and led to suspensions in production schedules between 2021 and 2023. The disruption and higher costs of car parts resulted in a 6.2% decline in production in 2024, as reported by the European Automobile Manufacturers’ Association, hitting profit. The fall in orders of diesel vehicles in most markets in favour of plug-in hybrids and pure electric vehicles contributed to a fall in output as the automotive sector transitions. In 2025, the industry faces the threat of tariffs imposed by the US and likely retaliatory tariffs from the EU, which will raise costs and reduce exports to the US, a crucial market for EU car makers. Revenue is forecast to expand at a compound annual rate of 4.4% over the five years through 2030 to €1.4 trillion. Environmental policies will drive car production further towards alternatively fuelled vehicles, significantly reducing petrol and diesel vehicle production, especially with an upcoming ban on the sale of new petrol and diesel vehicles across the EU from 2035. Some countries have gone even further - the Netherlands, the UK, Germany, France and Spain will ban selling new petrol and diesel vehicles from 2030. As a result, many EU producers have announced plans to only make hybrid and plug-in electric vehicles. Car makers will benefit from efforts by EU governments to reduce carbon emissions, leading to funding for chargepoints, which should drive up electric vehicle uptake.

The European electric truck market is experiencing explosive growth, projected to reach a substantial size driven by stringent emission regulations, increasing environmental awareness, and the decreasing cost of battery technology. The market's Compound Annual Growth Rate (CAGR) of 57.13% from 2019-2033 indicates a rapid transformation of the commercial transportation sector. Key drivers include the EU's ambitious decarbonization targets, coupled with growing corporate sustainability initiatives and incentives for electric vehicle adoption. While initial infrastructure limitations and high upfront costs present challenges, advancements in battery technology, expanding charging infrastructure, and government subsidies are mitigating these restraints. The market is segmented by propulsion type (Battery-Electric, Plug-in Hybrid, Fuel Cell Electric), truck type (Light, Medium, Heavy-Duty), and application (Logistics, Municipal, Others). Battery-electric trucks are expected to dominate the market due to their maturity and cost-effectiveness, particularly in shorter-haul applications. Heavy-duty electric trucks, while still nascent, are experiencing significant technological leaps, promising to revolutionize long-haul transportation in the coming years. Leading players like Volvo, Daimler, Tesla, and BYD are aggressively investing in R&D and expanding their product portfolios to capitalize on this burgeoning market. The geographical distribution reveals strong growth potential across various European regions, with Germany, the UK, and France leading the charge due to established automotive industries and supportive policies. The European electric truck market's success hinges on continued technological innovation, especially in battery range and charging infrastructure development. Further government support, including tax breaks and infrastructure investments, will be crucial to accelerating market penetration. Collaboration between manufacturers, charging network providers, and logistics companies is essential to establish a robust and reliable ecosystem for electric trucks. While challenges remain, the long-term outlook is exceptionally positive, promising a cleaner, more sustainable future for commercial transportation in Europe. The competitive landscape is dynamic, with established automotive giants and emerging tech companies vying for market share, fostering innovation and accelerating the transition to electric trucking. The anticipated surge in demand for electric trucks will drive further investment in battery production, charging infrastructure, and related services, creating significant economic opportunities across Europe. Recent developments include: In June 2022, Swedish commercial vehicle maker Scania debuted its regional long-haul electric truck that would be available in Europe as both a rigid truck and a tractor-trailer. The truck would achieve full charge in less than 90 minutes, half the length of a driver's mandated 45-minute rest period for every 4.5 hours of driving in Europe at 375 kW. Both the Scania 45 R and S series feature a 410 kW powertrain., In June 2022, Plastic Omnium announced that it had agreed with ACTIA Group to acquire 100% of ACTIA Power Division for an enterprise value of EUR 52.5 million, with a closing scheduled in the third quarter of 2022. ACTIA Power, based in the United Kingdom, specializes in designing and manufacturing onboard batteries, power electronics, and electrification systems for electric vehicles in heavy mobility: trucks, buses, coaches, trains, and construction equipment., In June 2022, Mercedes Benz Trucks, a Daimler trucks subsidiary, announced its new eActros long-haul electric truck for long-distance transport at the IAA Transportation 2022 in Hanover. However, before its launch, the company revealed that the truck could achieve a 20% to 80% charge in 30 minutes., In May 2022, Mercedes-Benz Trucks announced that it is systematically pressing ahead with introducing additional battery-electric models for this and the future. For the important long-haul segment, the eActros LongHaul, with a range of around 500 kilometers on one battery charge, is scheduled to be ready for series production in 2024. Mercedes-Benz Trucks aims to increase the share of locally CO2-neutral new vehicles in Europe to more than 5 % by 2030., In April 2022, Volta Trucks unveiled the small 7.5 and 12 -ton iterations of the Volta Zero 16-ton. Both the new trucks would be visually similar to the 16-ton from the front, with the 12-ton having a long chassis design and an extra wheel to cater to the payload.. Notable trends are: Battery Electric Truck Gaining Momentum.

European car production is greatly affected by household income and consumer and business confidence levels, which dictates private and fleet sales at dealerships. The level of business confidence and expansion plans influence fleet sales and orders from road freight operators. Overall, car manufacturing revenue in Europe is forecast to rise at a compound annual rate of 2.3% over the five years through 2025 to €1.2 trillion, including growth of 0.8% in 2025. Squeezed household income has driven down dealership orders in recent years, weighing on output and revenue growth. Data from the European Automobile Manufacturers’ Association shows that car production shot up by 10.2%, in 2023 as it came out of a pandemic-induced low. Car makers have contended with semiconductor shortages, which altered and led to suspensions in production schedules between 2021 and 2023. The disruption and higher costs of car parts resulted in a 6.2% decline in production in 2024, as reported by the European Automobile Manufacturers’ Association, hitting profit. The fall in orders of diesel vehicles in most markets in favour of plug-in hybrids and pure electric vehicles contributed to a fall in output as the automotive sector transitions. In 2025, the industry faces the threat of tariffs imposed by the US and likely retaliatory tariffs from the EU, which will raise costs and reduce exports to the US, a crucial market for EU car makers. Revenue is forecast to expand at a compound annual rate of 4.4% over the five years through 2030 to €1.4 trillion. Environmental policies will drive car production further towards alternatively fuelled vehicles, significantly reducing petrol and diesel vehicle production, especially with an upcoming ban on the sale of new petrol and diesel vehicles across the EU from 2035. Some countries have gone even further - the Netherlands, the UK, Germany, France and Spain will ban selling new petrol and diesel vehicles from 2030. As a result, many EU producers have announced plans to only make hybrid and plug-in electric vehicles. Car makers will benefit from efforts by EU governments to reduce carbon emissions, leading to funding for chargepoints, which should drive up electric vehicle uptake.

European car production is greatly affected by household income and consumer and business confidence levels, which dictates private and fleet sales at dealerships. The level of business confidence and expansion plans influence fleet sales and orders from road freight operators. Overall, car manufacturing revenue in Europe is forecast to rise at a compound annual rate of 2.3% over the five years through 2025 to €1.2 trillion, including growth of 0.8% in 2025. Squeezed household income has driven down dealership orders in recent years, weighing on output and revenue growth. Data from the European Automobile Manufacturers’ Association shows that car production shot up by 10.2%, in 2023 as it came out of a pandemic-induced low. Car makers have contended with semiconductor shortages, which altered and led to suspensions in production schedules between 2021 and 2023. The disruption and higher costs of car parts resulted in a 6.2% decline in production in 2024, as reported by the European Automobile Manufacturers’ Association, hitting profit. The fall in orders of diesel vehicles in most markets in favour of plug-in hybrids and pure electric vehicles contributed to a fall in output as the automotive sector transitions. In 2025, the industry faces the threat of tariffs imposed by the US and likely retaliatory tariffs from the EU, which will raise costs and reduce exports to the US, a crucial market for EU car makers. Revenue is forecast to expand at a compound annual rate of 4.4% over the five years through 2030 to €1.4 trillion. Environmental policies will drive car production further towards alternatively fuelled vehicles, significantly reducing petrol and diesel vehicle production, especially with an upcoming ban on the sale of new petrol and diesel vehicles across the EU from 2035. Some countries have gone even further - the Netherlands, the UK, Germany, France and Spain will ban selling new petrol and diesel vehicles from 2030. As a result, many EU producers have announced plans to only make hybrid and plug-in electric vehicles. Car makers will benefit from efforts by EU governments to reduce carbon emissions, leading to funding for chargepoints, which should drive up electric vehicle uptake.

In 2019, internal combustion engine trucks were overall cheaper than their electric counterparts in Europe. Heavy-duty ICE commercial vehicles had an average selling price of 109,000 U.S. dollars, 34,000 U.S. dollars less than electric heavy-duty trucks. Medium-duty trucks, which are overall cheaper than their heavy-duty counterparts, followed the same pattern, with a difference of 21,000 U.S. dollars between ICE and electric trucks,

French cognac producers are close to securing a deal on minimum import prices with China, amid ongoing trade tensions and declining sales.