European automotive industry faces structural shift and rising Chinese competition

The European automotive industry is experiencing a shift in its labor market and global positioning. According to data from CLEPA, automotive suppliers announced 18,900 job cuts in the first half of 2026, a 35 percent decrease compared to the 29,250 layoffs reported in the second half of 2025.

While the pace of layoffs is slowing, the sector faces structural challenges. The industry is seeing an increase in component imports from China and a decline in EU exports, leading to a shrinking trade surplus. The crisis is increasingly defined by Europe’s position in the global value chain rather than just factory closures.

However, there are signs of transition toward new technologies. The number of new jobs created in the first half of 2026 rose to 5,440, a 40 percent increase over the previous period. Notably, 66 percent of these new positions are related to electromobility.