Core Insights - The European Automobile Manufacturers Association (ACEA) released a report indicating a significant divergence in the global automotive market, with strong growth in China while Europe faces demand and production challenges [1] Economic Outlook - The economic outlook for the EU remains cautiously optimistic, with a projected GDP growth of 1.1% in 2025 and inflation expected to decrease to 2.3% [1] - The average inflation rate for 2026 is forecasted at 1.9%, which is below the European Central Bank's target of 2% [1] - Employment is expected to continue increasing, with the unemployment rate projected to drop to a historical low of 5.7% by 2026 [1] Global Automotive Market Performance - Global vehicle registrations increased by 5% in the first half of the year, reaching 37.4 million units [1] - The Chinese market experienced a robust growth of 12%, driven by supportive policies [1] - The North American market saw a growth of 2.5%, while the overall European market declined by 2.4%, with the EU market specifically down by 1.9% [1] - However, Turkey, EFTA countries, and the UK provided stability in the European market [1]