Bosch CEO Stefan Hartung has predicted minimal growth in global car and commercial vehicle markets for both this year and the next, citing lower-than-expected demand. Speaking to Reuters at the IAA Transportation trade fair in Hanover, Germany, Hartung noted that global car demand has not met the industry’s expectations from five years ago.
In Europe, car production is projected to be significantly below earlier forecasts, though Hartung did not specify exact figures, Reteurs reported. He told the news wire that it may take several years for demand to recover, as the region’s carmakers face high labor and energy costs alongside increasing competition from lower-cost Asian manufacturers, who are exporting more vehicles to Europe.
Volkswagen, Europe's largest automaker by sales, announced earlier this month that it was considering shutting down some of its German plants for the first time in its history as part of a cost-cutting effort to remain competitive against Asian rivals, Reuters reported.
Hartung also highlighted a slowdown in electric vehicle (EV) market growth, according to Reuters. While battery electric vehicle sales are increasing compared to last year, the growth is slower as more consumers turn to plug-in hybrids, particularly in markets like China. Reuters reported.
Despite these market challenges, Bosch plans to maintain its focus on electrification, he told the news wire. However, Hartung did not rule out the possibility of further job cuts at Bosch facilities due to clients delaying orders for EV components. Earlier this year, Bosch announced plans to cut around 3,500 jobs in its home appliance division by 2027 and has since warned of further cost reductions and staff layoffs, Reuters reported.
Global automakers are adjusting their electrification goals in response to factors such as the slow rollout of charging infrastructure, lack of affordable EV models, increased competition from Chinese manufacturers, and rising trade tensions, Reuters reported.