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The share of European car production will fall to five percent

In 2030, Western Europe will account for only five percent of world car production, up from 15 percent last year. European manufacturers, including those from the Czech Republic, will cope with the effects of the global pandemic and at the same time will have to comply with strict emission limits, which will lead to more expensive cars. The survey, which was attended by more than 1,100 executives from 30 countries, including the Czech Republic, was conducted by KPMG Global Automotive Executive Survey.

According to Jan Linhart from KPMG, Europe’s share in ten years may be even smaller due to the significant impact of the pandemic in the region. On the contrary, China, which accounted for 27 percent of production last year, will continue to strengthen.

“Europe is in a period of transition to tighten emission limits, which will lead to higher prices. This is another blow that carmakers will find it difficult to cope with. The solution would be to postpone the validity of the new emission limits for several years, negotiations on this option are already underway. The decline may be more than 30 percent if no measures in the form of deferral or support for the acquisition of new cars are taken, “said Linhart.


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The market is awaiting consolidation, thus entering into new partnerships, mergers and acquisitions. Car leaders expect that in the future to dramatically reduce the number of stores by up to 30 percent, the current crisis will accelerate this trend.

In addition, more than 80 percent of managers believe that the role of showrooms needs to change as automakers increasingly rely on digital channels, flexible contracts and data handling.


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Access to natural resources will also play a key role. China has the upper hand in this direction, controlling raw materials for the production of battery cars. European automakers are clearly in favor of battery-powered electric cars (83 percent) and hybrid cars (80 percent) in the future, and North American manufacturers want to continue investing in internal combustion engines (89 percent).


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