The European automobile industry faces significant challenges, including the slow shift to electrification, a shortage of affordable electric vehicles (EVs), insufficient charging infrastructure, and heightened competition from China. Analysts describe the outlook as bleak, with manufacturers struggling to meet new carbon regulations and grappling with stagnant car sales exacerbated by rising interest rates. While some firms are launching low-cost EVs to regain market share, experts caution that financial prospects are grim, as many companies remain reliant on less profitable internal combustion engine models. The European Automobile Manufacturers’ Association calls for regulatory relief, emphasizing the need for more affordable EVs.
