There will be tougher times ahead for European auto market even as automakers in the mainstream, high-end and luxury segments posted relatively strong results despite persistently high inflation and growing concerns about the economic outlook.
As supply chains improve and more new vehicles hit the market, automakers will lose pricing power, and investors are signaling tougher times are ahead. Senior analyst Felipe Munoz said: "With new electric models trying to attract consumer interest and Tesla continuing to exert pressure, there could be a lot of instability in the European auto market over the next 12 months.
Growth in Europe's auto market is under threat from inflation and geopolitical pressures, and a price war could put many consumers off buying new vehicles. " On top of that, European officials raised their inflation forecasts, and higher interest rates have made it more expensive to borrow money to buy a car. Tesla's price cuts have added to pressure on sales, putting automakers under pressure to lower prices and sacrificing margins by focusing on more expensive models during the chip supply crisis.
More popular news:
'Bond King' Jeffrey Gundlach Says Sharp Fed Rate Cuts By Year-End Will Push Up Gold Prices
Copper Shortage Is Irreparable Even after Biggest Mergers and Acquisitions, Here’s Why
G7 to Expand Sanctions Covering Metals on Russia, Promises Further Support for Ukraine
Zinc Prices to Plunge by 2025, Here's Why
IMF: US Debt Defaults Will Take a Heavy Toll on Global Economy, Global GDP Growth Can Plunge
BofA Sharply Lowers Forecast for Oil Price, Global Oil Consumption in 2023
Takeaways of Warren Buffett and Berkshire Hathaway’s 2023 Annual Meeting
US Treasury Bill Rates Soar to Record High on Debt Ceiling Jitters
No Other Country can Replace China's Manufacturing Industry Including India
SMM Daily Comments (May 5): LME Base Metals Rose across the Board, SHFE Nickel Plunged


![Los precios del cobre dejan de caer y se estabilizan; las empresas de aprovechamiento de chatarra compran activamente [Análisis diario del cobre secundario de SMM]](https://imgqn.smm.cn/usercenter/DpfYZ20251217171714.jpeg)
