According to Ver Elst, the automotive sector continues to play a key role in the European economy, accounting for around 7 percent of Europe’s GDP and providing employment to approximately 13 million people directly and indirectly across the European Union.
He noted that electrification represents a major transformation for the industry, but the momentum behind it is coming mainly from China rather than Europe. According to him, most electric vehicle batteries are produced in China, placing European manufacturers in a more challenging position.
Ver Elst pointed out that 2025 marks a turning point for the sector, as for the first time more cars produced in China are being imported into Europe than European-made cars exported to China. In his view, this is leading to declining production volumes and a shrinking global market share for Europe’s automotive industry.
According to him, around 80 percent of the components in internal combustion engine vehicles are still produced in Europe, while in electric vehicles the share of European-made content falls below 50 percent and, according to recent analyses, reaches approximately 45 percent.
Ver Elst also noted that Europe remains the only major market that has not yet recovered car sales to pre-COVID-19 levels.
He stressed that the industry must remain pragmatic and realistic about the challenges in order to turn them into opportunities. According to him, one of the main objectives of Automotive Cluster Bulgaria is to support the country’s automotive ecosystem and work toward attracting new investments.
Among the sector’s main priorities, Ver Elst highlighted the need for a stable and predictable tax system. He stated that, in the industry’s view, the government should focus on improving tax collection and reducing the shadow economy rather than increasing taxes.
He also commented on the proposed incentives for research and development, describing them as a step in the right direction, but still insufficient compared to levels in other European countries.
Ver Elst drew attention to the increase in wages in Bulgaria in recent years. According to him, continued double-digit wage inflation is limiting the industry’s ability to raise productivity quickly enough to offset rising costs.
He emphasized the need for more effective use of state aid for businesses, noting that Bulgaria remains among the countries with the lowest levels of state support in the European Union.
Among the main challenges for investors, Ver Elst pointed to administrative procedures and the lack of sufficient digitalization. According to him, Bulgaria can no longer rely solely on low labor costs to attract investment, but must instead offer faster and more coordinated administrative services.
He added that a more centralized approach between different state institutions is needed when supporting new investments and business projects.
Ver Elst also stated that Automotive Cluster Bulgaria will continue working on the exchange of best practices among companies, the development of sector partnerships, and support for the European “Industrial Acceleration Act,” which, according to him, could create better conditions for the automotive industry in Europe.
