Bosch CEO Stefan Hartung stated at the IAA Mobility trade fair in Hannover, Germany, that due to lower-than-expected demand, global growth in the passenger car and commercial vehicle markets will be minimal this year and next. Global automotive demand has not yet reached the industry's expectations from five years ago. European car production is expected to be significantly lower than earlier forecasts, and demand may take several years to recover as European automakers face high labor and energy costs, along with fierce competition from low-cost Asian car manufacturers.

Growth in the electric vehicle market is also slowing. While sales of pure electric vehicles have increased compared to last year, the growth rate has decelerated as consumers shift toward plug-in hybrid vehicles. Bosch still plans to remain focused on electrification but does not rule out further layoffs due to customers delaying orders for EV components. Earlier this year, Bosch had already announced layoffs and warned of further cost-cutting and job reductions.