The European automotive industry is facing serious challenges due to the slow transition to electric vehicles, high energy costs, and increasing competition from China, said Benjamin Krieger, Secretary General of CLEPA, during the international conference Automotive Forum Bulgaria 2026 held at the John Atanasoff Innovation Forum in Sofia.
The forum, organized by Automotive Cluster Bulgaria, brought together representatives of the automotive industry, the technology sector, and public institutions.
Krieger pointed out that the transformation of automotive powertrains has already begun and that by 2030 the market will simultaneously include internal combustion engine vehicles, hybrids, and fully electric vehicles. However, according to him, the process is not advancing fast enough to ensure a return on investments in electrification.
He warned that there is a risk newly built electric vehicle factories could remain underutilized due to insufficient market demand. According to Krieger, electrification is necessary, but its success will require changes in the regulatory environment and stronger support for the industry’s competitiveness.
He also stated that the European Union’s 2035 targets cannot be achieved in their current form, as the electric vehicle market is still being driven primarily by regulations rather than real consumer demand.
Krieger highlighted the growing pressure from Chinese manufacturers, which continue to increase their global market share. According to him, China currently has advantages both in electrification and in terms of energy costs and speed of product development.
“European companies are competitive in China when the conditions are equal — with the same electricity prices, labor costs, and regulations,” Krieger said. In his words, Europe must ensure “a level playing field” for competition with Chinese manufacturers.
As a positive development, Krieger pointed to the European Commission’s planned “Industrial Acceleration Act,” which for the first time proposes definitions for a “European automotive component” and a “Made in Europe vehicle,” as well as incentives for manufacturing within the EU.
According to him, Europe’s automotive industry is suffering from high energy prices and excessive regulation, making it difficult to compete with the United States and Asia. He noted that, according to CLEPA analyses, the sector’s business environment has remained in crisis since 2018.
Krieger also stated that around 100,000 jobs in the EU automotive sector have either already been cut or are expected to be cut over the past two years, despite earlier expectations of employment growth.
Despite these difficulties, Europe continues to maintain strengths in innovation, engineering expertise, and the development of new technologies, he emphasized. According to Krieger, software and digitalization will be among the key drivers of growth in the sector.
He called on the European Union to increase funding for industrial innovation and joint development projects through Horizon Europe and initiatives for connected and autonomous vehicles. Krieger also stressed the importance of cooperation between businesses, industry clusters, and European institutions in shaping the future policies of the automotive sector.
