Bosch CEO Sees Little Growth in Car Market, EV Slowdown Ahead

German auto supplier Bosch’s CEO, Stefan Hartung, expects minimal growth in global car and commercial vehicle markets this year and next, according to a recent interview with Reuters.

Hartung noted that the demand for cars is lower than the industry anticipated five years ago, with Europe expected to produce a few million fewer cars than initially projected. The region’s carmakers are grappling with high labor and energy costs, as well as increasing competition from lower-cost Asian rivals.

Global Car Market Struggles

Hartung’s comments come as Europe’s largest carmaker by sales, Volkswagen, considers shutting down some of its plants in Germany for the first time in its history. This move is part of a cost-cutting drive to stay competitive against Asian rivals.

The industry is facing significant challenges, including high labor and energy costs, which are putting pressure on manufacturers to find ways to reduce expenses.

Slowdown in EV Market

Despite the overall slowdown, Hartung sees growth in battery electric car sales compared to last year, although at a slower pace. Consumers are shifting towards plug-in hybrids, including in China.

Bosch remains committed to its electrification strategy, viewing market corrections as normal. However, Hartung did not rule out further job cuts at Bosch sites due to clients postponing their EV parts orders.

Job Cuts and Cost Reductions

Bosch announced in February that it would cut around 3,500 jobs in the home appliance division by 2027. Later, in April, the company warned of further cost cuts and staff reductions.

Global automakers are scaling down their electrification targets due to slowing demand for full EVs. Factors contributing to this slowdown include a lack of affordable models, slow roll-out of charging points, growing trade tensions, and increased competition from Chinese rivals.

EVXL’s Take

The slowdown in the EV market is a reminder that the transition to electric vehicles is not without its challenges. However, it’s important to remember that this is a long-term shift, and setbacks are to be expected. As Bosch continues to pursue its electrification strategy, it’s clear that the industry remains committed to a more sustainable future. For more insights on the EV market, check out our recent articles on Tesla.

What are your thoughts on the current state of the EV market and the challenges ahead? Leave your comments below!

Photos courtesy of Bosch.