According to the Economic and Steel Market Outlook 2026-2027/Q2 2026 of the Economic Committee of the European Steel Association (EUROFER), production in the EU automotive sector is expected to remain under pressure in 2026, while the steel pipe sector is forecast to see only limited growth amid a gradual and uneven recovery in demand from steel-using sectors.
EUROFER said the auto sector remained the weakest core steel-using sector, with output declining for six straight quarters and remaining well below pre-pandemic levels. Although the sector posted a slight 0.8 percent year-on-year recovery in the third quarter of 2025, output fell again by 1.3 percent in the fourth quarter, reflecting continued manufacturing weakness, slower-than-expected electric vehicle uptake and lower consumer demand.
Automotive production fell sharply 9.6 percent in 2024 and fell further 4.3 percent in 2025, due in part to uncertainty related to U.S. tariffs and a weak manufacturing environment. EUROFER expects auto production to contract by 0.2 percent in 2026, down from a previous forecast of 0.9 percent growth, as trade and geopolitical tensions and higher energy prices continue to weigh on the sector.
The association expects the auto sector to return to growth only in 2027, with output increasing by 2.9 percent. EUROFER noted that, as a highly export-oriented industry, the automotive
