Adler Pelzer, Antolin, Pasubio, Standard Profil - comment

The EU is reportedly considering proposals to ease the planned 2035 ban on combustion engines. The objective is to support European OEMs and domestic manufacturing, which would be broadly positive for automotive suppliers. It remains unclear whether this shift would reduce capital expenditure requirements at the supplier level, as the urgency of the transition to battery electric vehicles may be moderated.

The impact on order books is likely to be limited. Existing contracts that were previously in run-off may be extended, while volume assumptions for more recent BEV-related contract awards could be revised downward. Over the longer term, however, we remain cautious. While these measures may ease the transition for European manufacturers, they risk ceding market share to more modern Chinese competitors, who are increasingly bringing their own vertically integrated supplier capacity into the market.