Automotive market update: navigating an evolving industry landscape

The automotive industry is in a constant state of motion, moving 1.6 billion components every year to support the manufacturing of approximately 85 million cars worldwide.

With around 20,000 parts required per vehicle, the sheer scale of supply chain activity is immense, particularly for the 960 million components that must be imported via rail, road, sea, or air to reach production sites.

Metro’s Automotive Operational team plays a crucial role in keeping this complex system running, managing parts, accessories, and vehicles against stringent delivery KPIs to ensure timely, in-full deliveries, no matter the challenges. As global supply chains adapt, Metro’s expertise in overcoming obstacles helps to keep the automotive world moving.

Chinese EV Imports causing waves
European automakers are facing significant pressure from an influx of more affordable electric vehicles (EVs) from China. Chinese brands have quickly gained ground in Europe, rising from less than 1% market share in 2019 to an estimated 8% today. With forecasts suggesting that this figure could double by 2025, European automakers are now contending with vehicles priced as much as 20% lower than EU-made models. In response, the European Union has implemented additional tariffs on Chinese EVs, raising import duties by up to 45.3% after a high-profile trade investigation aimed at protecting the European market.

China has responded by advising its automakers to reduce investments in European countries that support the new tariffs. This escalating trade tension highlights the competition between Chinese and European manufacturers, especially as China’s surplus production capacity of 3 million EVs annually—double the total EU market—seeks new outlets following similar tariff impositions in the US. Germany’s Volkswagen, for example, plans to restructure its domestic operations, including shutting factories and reducing staff, in response to mounting cost pressures and competitive challenges posed by Chinese EVs.

Autonomous driving advances with electric
As the automotive sector continues its shift toward electric mobility, autonomous driving technology is expected to advance alongside it, with early implementation focused on well-defined urban areas. Inner-city environments, where infrastructure and controlled conditions better support this technology, will likely see the first deployments of automated driving. 

Projections estimate that widespread adoption of self-driving passenger vehicles in the UK could save 3,200 lives and prevent over 50,000 serious accidents by 2040, resulting in an economic boost worth £38 billion. Public openness to this technology is growing, with nearly a third of adults willing to try automated passenger services and even higher interest among Generation Z.

Metro’s automotive logistics

The automotive logistics team has had a busy month, handling over 150 cars transported via road, air, and sea, as well as shipping more than 500 containers of automotive components globally and managing around 30 full trailer loads of parts across Europe. 

When time is critical, Metro steps in to provide airfreight solutions for urgent deliveries, whether it’s a customer’s car for a deadline or a new vehicle heading to an event or press reveal. This month, Metro helped a client successfully re-import a car from China to the UK, overcoming delays caused by complex regulatory challenges. For automotive manufacturers, private collectors, and high-profile individuals, Metro ensures that vehicles arrive securely and on time, whatever the destination.

As the automotive industry adapts to new market conditions, from the rise of Chinese EV imports to the advancement of autonomous technology, Metro remains a dependable partner, supporting clients across every stage of the supply chain and helping them navigate the complexities of a fast-evolving global market.

If you have any questions or concerns about your Automotive supply chain, please EMAIL our Automotive team who are standing by to assist.