New H1 2026 figures from European automotive components supplier association CLEPA suggest Europe’s auto industry is experiencing a growing imbalance on its trade with China.
CLEPA said that Europe’s automotive supply industry continues to face ‘intensifying pressure from unfair international competition, driving further restructuring’.
Suppliers announced 18,900 job cuts in the first semester of 2026, making this the third consecutive year of significant workforce reductions, it said. While this is 35% below H2 2025, the trend remains ‘concerning’, and the 4,840 jobs created are far below the number lost.
At the heart of this pressure is the growing imbalance in Europe's automotive trade: China is not only exporting more to Europe, but is also capturing an increased share of the automotive value chain. Chinese component imports reached €5 billion in H1 2026, up 23% year-on-year. The impact is highly visible in Europe’s overall trade performance, which shows the EU increasingly importing while exporting less.
CLEPA said Europe’s automotive trade position is ‘deteriorating at an accelerating pace.’ While imports continue to grow, exports are moving in the opposite direction: EU automotive exports fell to €24.4 billion in H1 2026, down from €28.9 billion two years earlier. Exports to traditional trading partners such as the UK and Mexico have largely stagnated, while the deterioration in trade with China is particularly striking, CLEPA maintains.
CLEPA figures show that EU exports to China have almost halved in just two years, falling from €5.4 billion in H1 2024 to €3.2 billion in H1 2026. At the same time, imports from China continue to surge, putting growing pressure on Europe’s trade balance.
The result is a rapid erosion of Europe’s automotive trade surplus. After peaking at €14.2 billion in H2 2023, the surplus had fallen to just €8.6 billion by H1 2026. The reversal is most dramatic in trade with China, where a €1.9 billion surplus in H1 2024 had turned into a €1.8 billion deficit just two years later.
CLEPA said that Europe is restructuring its automotive industry just as its position in the global value chain is weakening. ‘Without a targeted industrial strategy to reverse deterioration in production, and policy and market Made in Europe-incentives, this restructuring will lead to the decline of our region’s industrial base,’ CLEPA said.
Benjamin Krieger, CLEPA Secretary General, said: “Job losses are the visible symptom of a deeper problem: unfair competition. We are entering a third year of significant restructuring. Fewer jobs are being cut, but the overall negative trend continues. Meanwhile, China captures an ever-growing share of Europe’s manufacturing base, while shutting the door on our exports."
