Bosch CEO Stefan Hartung has predicted modest growth in the global markets for cars and commercial vehicles for this year and the following due to lower-than-expected demand. The demand for automobiles has not kept up with industry expectations from five years ago, Hartung told Reuters at the IAA Transportation trade show in Hanover, Germany.
According to Reteurs Hartung did not give precise figures but it is anticipated that car production in Europe will be significantly lower than originally estimated. He told the news wire that it might take many years for demand to rebound as the region’s automakers battle with high labor and energy costs and increasing competition from lower-cost Asian manufacturers who are exporting more automobiles to Europe.
According to Reuters, Volkswagen the largest automobile manufacturer in Europe by sales stated earlier this month that it was considering the first-ever closure of some of its German plants as part of a cost-cutting effort to remain competitive against rivals in Asia.
Hartung also underlined a deceleration in the expansion of the electric vehicle (EV) market according to Reuters. Battery Sales Cost of Ownership: Electric vs Gasoline Vehicles Due to the growing popularity of plug-in hybrids, particularly in China and other developing nations, the number of electric vehicles has increased over the previous year albeit more slowly. As stated by Reuters.
He told the news wire that despite these challenges in the market Bosch plans to continue concentrating on electrification. Nonetheless Hartung would not totally rule out the possibility of more layoffs at Bosch facilities as a result of clients postponing their purchases for electric vehicle parts. Bosch has warned about further cost cuts and staff layoffs after revealing earlier this year that it will lose roughly 3,500 roles in its home appliance division by 2027, according to Reuters.
As per Reuters, international automakers are altering their electrification objectives due to several factors such as the postponed establishment of charging infrastructure, scarcity of fairly priced electric vehicle models, increased rivalry from Chinese manufacturers, and intensifying trade tensions.
