European leaders adjusting manufacturing, commerce, and capabilities as lasting changes unfold across Europe

The European automotive industry is navigating a period of significant change, with digital tools and sustainable practices taking centre stage. According to the European Automobile Manufacturers' Association (ECG), the sector is "setting the course for digital transformation, CO transparency, and enhanced global cooperation."

In a recent member survey, ECG found that 51% of companies are currently experiencing a drop in volume. This trend is not unique to Europe, as the industry grapples with broader headwinds. However, Spain is one of the few economies showing resilience amid these challenges.

One area where digitalisation is making a marked difference is in vehicle inspections. Toyota Motor Europe is leveraging AI to streamline this process, aiming to improve speed and accuracy. The main challenge in adopting AI, however, is not the technology itself, but the workforce's ability to adapt to a more digital world.

The Port of Barcelona is preparing to tender a third ro-ro terminal to accommodate expected throughput growth. This expansion is part of a broader trend towards digitalisation in the sector. In Antwerp-Bruges, a 25.6% increase in imported vehicles from China was recorded in 2024, yet the port saw a reduction of approximately 334,000 vehicles overall. This indicates shifting sourcing trends and the need for ports to adapt to new patterns of trade.

The Port of Emden, in collaboration with Deutsche Telekom, is trialling a 5G-powered marshalling system to automate vehicle flow and address labour constraints. Meanwhile, Luka Koper in Slovenia has opened a new vehicle storage zone with space for 4,000 additional units and upgraded rail links to accommodate growing inland demand.

BLG Logistics has announced the formation of a new subsidiary in Turkey to serve as a bridge to Eastern Europe and the Middle East. This move underscores the importance of regional connectivity in the evolving automotive landscape.

The discourse at the ECG General Assembly suggests that today's challenges are not short-term fluctuations but deeper transformations in trade policy, market demand, and technological capability. The sector's focus on digital tools is a key part of this transformation, as companies strive to optimise performance across emissions and cost structures.

However, it's important to note that much of the growth in battery electric vehicles is due to base effects and distortions that began in 2023. According to Justin Cox, director of global production at GlobalData, it still represents a weak number. The recovery of the European automotive market, forecast for 2025, is unlikely to restore volumes to their pre-2017 peak.

The sector's digital transformation also extends to supply chain transparency. Perceptive AI can help get information from the physical world into the virtual world, enabling companies to make more informed decisions. Over 60% of EU exports remain intra-European, exposing untapped potential for further digital integration and cooperation.

In conclusion, the European automotive industry is undergoing a significant transformation, driven by digitalisation, sustainability, and a shifting global trade landscape. As companies adapt to these changes, they are finding new ways to optimise performance, streamline processes, and stay competitive in a rapidly evolving market.

European leaders adjusting manufacturing, commerce, and capabilities as lasting changes unfold across Europe