Automotive Sector
Data collected by the ACEA (European Automotive Manufacturers Association) shows that after the first wave of the virus, between mid-March and May, the EU market declined by 41.5%, with car sales plummeting by more than 95% in major EU markets in May.
[6] Since 13.8 million Europeans work in this industry and 11.4% of all EU manufacturing jobs are in the automotive sector, it is a strong possibility that there will be targeted economic support to limit unemployment levels over the next quarter.
“As we work on putting the wheels back in motion, we must look for win-win solutions, addressing the pressing environmental, industrial and broader societal needs,” – Sigrid de Vries, CLEPA Secretary General.
On 14th May, the European Commission held a meeting with Automotive CEO’s. It was expressed that the purpose of any automotive recovery measures will be to target investment in renewable energy carriers and infrastructure to boost industry growth through technology solutions.
[7] As a result, fiscal measures in the form of tax benefits or purchase incentives for buyers have been implemented in 26/27 EU countries to stimulate electric vehicle sales, bar Lithuania.
[8]
Additionally, out of the € 42 billion allocated to Germany’s green projects, around 22% will be allocated towards the automotive sector, with €2.5bn used to expand Germany’s charging infrastructure for electric cars. The French car industry will also receive a similar aid package, totalling roughly €8bn, to be invested heavily in Renault for electromobility.
[9] As a result of the strong desire from the EU to push policies that accelerate the secular trend towards electric vehicles through supply chain innovation and sustainable growth within this sector, the automotive market is set for a strong recovery towards the end of this year.