European Auto Industry Rebounds After Energy Crisis, Sales Up 16% in 2023
The European automotive industry has weathered a storm of soaring energy prices and operational costs in recent years. The European Association of Producers of Parts for the Automotive Industry (Clepa) sounded the alarm in 2022, warning of the sector's vulnerability to these challenges.
The energy crisis of 2022 threatened the very survival of European automotive industries, with competition from rivals in China and the US adding to the pressure. Some medium-sized companies have since turned the tide by adopting intelligent, data-based forecasting models and professional energy management software. These measures have helped reduce electricity expenses by up to 15%, providing better planning security and cost control.
Despite these improvements, finished vehicle and automotive components costs surged across major European markets in 2023. The 2022 energy crunch struck the industry at a particularly vulnerable time, as it was still recovering from the COVID-19 pandemic and facing pressures from the conflict in Ukraine. However, lowering energy tariffs prevented operational costs from spiralling out of control. The rise in costs was largely attributed to the growth of transport equipment and labour costs, rather than energy prices alone.
By 2023, the energy crisis was essentially over, according to European politicians. This, coupled with improved energy management strategies, facilitated the European automotive industry's post-coronavirus rebound. Western Europe recorded sales of 14.1 million finished vehicles in 2023, marking a 16% increase from the previous year. While challenges remain, the industry has shown resilience in the face of adversity.
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