2025 European auto industry slowdown affects IT service providers, impacting TCS and Infosys.

The European automotive industry is experiencing a slowdown in FY25, adversely affecting auto engineering businesses of major IT service providers like TCS and Infosys. This decline is driven by supply chain challenges, regulatory changes, and increased competition from China, leading to reduced car demand and profits for manufacturers like Volkswagen and Mercedes-Benz. Job losses in the sector have reached about 86,000 since 2020. However, IT leaders remain hopeful for growth in non-automotive sectors.

October 28, 2024
3 Articles