Europe’s auto finance landscape in transition

Europe’s automotive industry is entering a decisive phase. Trade disputes, powertrain transition, intensifying competition and mounting regulation are combining to test margins, business models and long-term strategy across both OEMs and auto finance providers.

The new Auto Future Report 2026, sponsored by Alfa, examines how lenders and manufacturers are navigating this structural shift – and where the biggest risks and opportunities lie for the year ahead.

The report is based on in-depth interviews and expert contributions from senior leaders across auto finance companies, OEMs, technology providers and industry advisers, offering first-hand insight into the strategic decisions shaping the market.

Download your copy of the full report here.

Key takeaways from the inaugural Auto Future Report:

• Growth remains fragile: New car sales edged up in 2025 but remain below pre-Covid levels, while sharp declines in light and heavy commercial vehicles highlight weak business confidence.
• Earnings stable – but exposed: Auto finance profitability should hold steady in 2026, though trade tensions, unemployment risk, OEM competition and residual value pressure could quickly erode margins.
• Regulation reshapes the market: Sustainability mandates, compliance burdens and the UK commission disclosure crisis are increasing costs and constraining innovation.
• EV economics under strain: CO₂ targets are accelerating electrification, but high acquisition costs and depreciation risk persist. Lenders are expanding secondlife leasing to manage early-generation EV losses.
• Truck electrification lags: High vehicle prices and inadequate charging infrastructure are slowing decarbonisation in heavy-duty transport.
• Chinese OEM competition intensifies: New entrants are capturing market share with aggressive pricing and advanced technology, challenging legacy brands and increasing brand risk for lenders.
• Technology investment accelerates: Lenders are deploying AI to personalise finance offers, optimise residual values and boost productivity without expanding headcount.

The Auto Future Report 2026, sponsored by Alfa, captures a market in structural transition. Stability remains, but pressure is intensifying. Strategic discipline, technology investment and careful risk management will define success in 2026.

Download the Auto Future Report 2026 and stay ahead of the forces transforming Europe’s automotive and auto finance markets.