Despite the current wave of job cuts, the automotive sector remains one of Europe's most important industrial pillars, supporting around 14 million jobs across manufacturing, supply chains, sales and servicing.

LONDON, March 10 (Xinhua) -- A wave of layoffs announced by major European carmakers is highlighting mounting pressures on the region's automotive industry, as weakening external demand, intensifying global competition and the costly transition to electric vehicles (EVs) force manufacturers to restructure.

The latest and most striking example comes from German carmaker Volkswagen, which said in its annual report that about 50,000 jobs in Germany are expected to be cut by 2030 as part of a sweeping restructuring plan.

"The scale is absolutely huge," David Bailey, an automotive industry expert at the University of Birmingham, said in an interview with Xinhua on Tuesday, describing the move by Volkswagen as evidence of a "perfect storm" facing European carmakers.

He added that the decision reflects the severity of the challenges confronting the auto industry across the continent.

In Britain, luxury carmaker Aston Martin said earlier this year it plans to cut up to 20 percent of its workforce following continued financial losses. Meanwhile, Jaguar Land Rover has also announced plans to reduce several hundred management positions in Britain through a voluntary redundancy scheme.

European manufacturers are facing multiple pressures. Demand in some overseas markets has weakened, slowing export growth for companies that have long relied on global sales.

At the same time, competition in the EV sector has intensified rapidly as new players gain ground. Chinese manufacturers, in particular, have become increasingly competitive in EV production and technology, putting pressure on European brands both internationally and within Europe.

Trade tensions add another layer of uncertainty, with U.S. tariffs complicating exports for European manufacturers selling into the United States.

Meanwhile, the transition to electric mobility is forcing carmakers to invest heavily in new production systems, developing electric platforms, batteries and digital technologies. But the shift to EVs is also transforming how vehicles are built.

"Electric vehicles have far fewer parts and moving components," Bailey said. "That inevitably means fewer workers will be needed in manufacturing and the wider supply chain."

Despite the current wave of job cuts, the automotive sector remains one of Europe's most important industrial pillars, supporting around 14 million jobs across manufacturing, supply chains, sales and servicing.

Looking ahead, Bailey said European manufacturers will need to adjust their cost structures and accelerate technological innovation to remain competitive in an increasingly dynamic global market.

"The challenge for European carmakers will be managing that transition while building new capabilities in emerging automotive technologies," he said.