It is against this backdrop, analysts say, that the industry will be bracing for a bumpy ride next year. Julia Poliscanova, senior director for vehicles and e-mobility supply chains at the campaign group Transport & Environment, described the outlook for European automakers as “quite bleak.” “They are behind on electrification, their products are just not as good as the formidable Chinese competition – and that is not anyone’s fault but the carmakers,” Poliscanova told CNBC via video call. Poliscanova highlighted the fact that car sales in Europe remain below pre-Covid-19 levels as the industry continues its struggle with getting to grips with higher interest rates. Some of Europe’s original equipment manufacturers (OEMs) have expressed concern about the next tightening of carbon regulations, particularly as electric vehicle demand falters.