16:42 15-10-2025

Europe’s auto market stalls as Chinese brands surge and the Green Deal faces a rethink

Europe’s car market is losing momentum. Research from AlixPartners points to a 2% drop in sales in 2025, while Chinese brands are set to grow their share from 8% to 13% by 2030. For European manufacturers, that trajectory translates into roughly 800,000 fewer vehicles made at home.

At the Automotive Forum, speakers argued that the Green Deal needs urgent recalibration for the auto sector. Industry figures and policymakers noted that the shift to electric cars is unfolding more slowly than anticipated and that prices remain stubbornly high. At the same time, Chinese models are steadily building presence in Europe, combining aggressive pricing with up-to-date technology — exactly the pressure point where local brands feel the squeeze.

Roberto Vavassori, president of ANFIA, said around 100,000 jobs in the automotive components sector have disappeared in Europe over the past year. Industry representatives suggested postponing the post-2035 ban on internal combustion engines and allowing more flexibility in technology choices. A pause like that would buy suppliers time to adapt without losing the thread of innovation.

Several members of the European Parliament also backed a rethink of the Green Deal, emphasizing technological neutrality to protect competitiveness and preserve jobs across the continent’s automotive ecosystem. The signal from Brussels is edging toward pragmatism: goals matter, but so does keeping Europe’s car industry in the game.