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European Auto Supply Chain Faces Fresh Pressure from China and Sluggish Growth

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Europe 25 Mar 2026 05:01 PM IST Steel Orbis

 Europe’s automotive supply chain is facing mounting strain as rising Chinese competition, growing component imports, and weak vehicle demand reshape the market. Speaking at the Eurometal Steel Day & YISAD Flat Steel Conference in Istanbul on March 24, 2026, Cosmin Bakai of Autoliv said global light vehicle production may grow only about 1.3 percent by 2030, while Europe is expected to remain largely stagnant. China-origin component imports into Europe reached about $8 billion last year, nearly double the level seen three years earlier. Bakai also noted that Chinese automakers are planning facilities in Italy, Poland, Hungary, Spain, and Turkey, though these projects may take time to generate major steel and component demand. He added that tariffs, protectionism, energy costs, and geopolitical risks are increasing pressure on the sector, leaving the short- and medium-term outlook for Europe’s automotive and steel industries uncertain.