Automotive markets are shrinking around the world
Fewer vehicles will be sold this year than previously assumed in all major automotive markets around the world. The German Association of the Automotive Industry (VDA) is now assuming a decline. Now that Germany and Europe have concluded too few trade deals, it is taking its toll.
D.The German Association of the Automotive Industry (VDA) has lowered its sales forecasts for all major world markets for the current year. “Things are currently getting worse in all regions,” VDA President Hildegard Müller said in an interview with WELT AM SONNTAG. “For the world market, we previously assumed growth of plus one percent, which we have now reduced to minus one.”
In Europe, a three percent increase has been forecast and new registrations should now only be at the level of the previous year. For the US, the VDA lowers the forecast to minus one percent, after previously plus two. And for China, the forecast for auto sales has been lowered from plus two to minus two.
“The situation is still uncertain and unstable overall,” Müller said, referring to Russia’s aggressive war against Ukraine, the crown blockade in China, the shortage of semiconductors and crises in commodity markets. “Global upheavals are mutually reinforcing.”
Müller criticized that “the need for major reforms” had not yet arrived in politics. “If Germany has one of the highest industrial electricity prices, the longest planning processes, a lack of security for raw materials and high taxes and duties in international comparison, then there is a risk that production will be relocated. “, he has declared.
It shows that Germany and Europe have concluded too few trade agreements. “This is not only an economic mistake, but also a geostrategic mistake,” she said. Trade and investment agreements are now needed, as well as energy partnerships. “The turning point requires concrete action on the part of all of us”.