European automotive ecosystems are facing a pivotal moment. While national contexts differ, the challenges shaping the future of the industry are strikingly similar across regions. This became clear during the European Automotive Cluster Network (EACN) Round Table, where cluster leaders from Finland, Poland, Slovenia and Spain shared first-hand insights into the structural pressures facing the European automotive sector.
VAMOS Ecosystem Lead Tuulia Haveri of DIMECC actively participated in this high-level European dialogue as part of a knowledge-driven expert community connected to Europe’s key automotive discussions, gaining valuable insight into the shared challenges shaping Europe’s industrial future.
A Shared European Challenge: Competing in a Global Market Shaped by China
One of the strongest common themes emerging from the round table was global competitiveness, particularly the growing impact of Chinese automotive manufacturers on European markets. This challenge was highlighted most clearly in Poland and Spain.
In Poland, Chinese investments in Europe were described as creating an uneven value distribution: while manufacturing activities are located locally, high-value functions such as R&D, design and strategic decision-making largely remain in China. As a result, local suppliers are often positioned mainly as production capacity, limiting long-term value creation and weakening Europe’s strategic autonomy within the global automotive value chain.
A similar dynamic was identified in Spain, where Chinese manufacturers are entering the market through both greenfield investments and the takeover of existing plants. While these investments increase production volumes, they also intensify competition at a time when European manufacturers face very high costs linked to electrification, clean technologies and innovation.
The discussion underlined a clear need for stronger European coordination, deeper integration of local suppliers, and shared strategies to ensure that innovation, skills and value creation remain anchored in Europe.
During the discussion session, Paul Butler, CEO of the North East Automotive Alliance (NEAA, UK), provided an additional perspective. He noted that Chinese EV models already accounted for three of the top ten best-selling cars in the UK in 2025, in a market with no EV tariffs. This rapid market entry has forced UK automotive actors to focus on cost reduction, process optimisation and intensified cooperation between national automotive clusters to maintain competitiveness.
Uncertainty, Investment Hesitation and Fragmentation
Beyond global competition, economic and political uncertainty is weighing heavily on automotive ecosystems across Europe.
In Poland, uncertainty and a lack of predictability in market development were identified as major barriers to investment. Fluctuating demand and unclear future order volumes are causing companies to hesitate, even where there is a clear willingness to invest and grow.
In Slovenia, both economic and political instability are having a significant impact. With the automotive sector accounting for around 10% of national GDP and 25% of exports, delayed policy clarity linked to upcoming elections has led many decision-makers to postpone strategic choices and investments. At the same time, high energy costs and taxation, combined with rising expectations for speed and flexibility, are reducing competitiveness in a traditionally long-cycle industry.
Another recurring issue, raised particularly from the Polish perspective, is fragmentation. OEMs, suppliers, aftermarket actors and distributors are often organised separately, resulting in fragmented representation and limited influence at European level. The round table highlighted that better alignment between automotive stakeholders could significantly strengthen Europe’s collective voice in industrial and policy discussions
Electrification and the Pace of Change
The transition to electrified and sustainable mobility was described in Spain as the most structural transformation currently facing the automotive industry. Electrification requires not only the adaptation of combustion-engine plants and production lines but also significant investments in innovation capacity, charging infrastructure and customer support systems, many of which fall outside the traditional scope of automotive manufacturing.
The EACN round table demonstrated the value of cross-border ecosystem collaboration. While challenges manifest locally in Finland, Poland, Slovenia and Spain, their root causes, global competition, electrification and value-chain imbalances, are European and global in nature.
As Europe’s automotive industry accelerates its transformation, being connected matters more than ever.
The EACN round table speakers:
Tuulia Haveri, VAMOS Ecosystem (Finland)
Bartosz Mielecki, Polish Automotive Group – PGM (Poland)
Tanja Mohorič, GIZ ACS – Slovenian Automotive Cluster (Slovenia)
Josep Nadal, CIAC – Catalan Automotive Industry Cluster (Spain)