Market evolution: Steering wheels and columns (CN 870894) — 2015–2025

Introduction

This report examines the evolution of EU external trade in steering wheels, steering columns, steering boxes, and their parts (Combined Nomenclature code 870894) over the period 2015–2025. As a critical component in the automotive supply chain, this product category provides valuable insights into broader shifts in European industrial competitiveness, trade reorientation, and supply chain restructuring. The analysis reveals a market undergoing significant structural transformation: while the EU has historically maintained a substantial trade surplus in this category, the decade saw a marked erosion of that advantage, driven by a combination of rising imports, stagnating exports, and profound geopolitical disruptions.

Full overview data

1. Erosion of the EU Trade Surplus: A Decade of Structural Shift

Exports Declined While Imports Nearly Doubled

The most striking feature of the 2015–2025 period is the divergence between EU export and import trajectories. EU exports of CN 870894 to non-EU countries fell from €3.11 billion in 2015 to €2.71 billion in 2025, a decline of 13.0%. Over the same period, import value surged from €1.08 billion to €2.03 billion, an increase of 88.3%. The result was a dramatic compression of the EU's trade surplus, which shrank from €2.03 billion to just €678 million — a contraction of 66.6%.

Source: Trade overview

Rising Unit Prices Mask Underlying Volume Weakness

Unit values evolved in a way that partially cushioned the decline in export revenues. EU export prices rose from €17,109 per tonne in 2015 to €18,961 in 2025 (+10.8%), while import prices climbed from €9,966 to €12,469 per tonne (+25.1%). Import prices remain significantly below export prices (roughly 65% of the export unit value), suggesting that a growing share of imports consists of lower-value-added components or that EU producers command a quality premium that is being progressively challenged.

The EU Remains a Net Exporter — but the Gap Is Narrowing

The net import reliance ratio remained negative throughout the period (confirming net exporter status), moving from −7.9% in 2015 to −10.2% in 2025. The ratio was at its most negative (−32.7%) in an intermediate year, indicating that the EU's net export position has actually weakened from its peak despite still being structurally in surplus. Meanwhile, trade intensity more than doubled from 20.5% to 47.2%, and export propensity rose from 14.6% to 34.1%. This indicates that while the sector has become far more internationally integrated, the balance of that integration has tilted toward import dependence.

2. Geopolitical Reorientation: New Partners Emerge, Old Ones Fade

Morocco's Extraordinary Rise

Perhaps the most dramatic geographic shift in the period is the emergence of Morocco as a central node in the EU's steering-component trade. EU imports from Morocco surged by an extraordinary 1,349% — from €28 million in 2015 to €403 million in 2025 — making Morocco one of the EU's top import suppliers. Simultaneously, EU exports to Morocco grew by 421%, from €50 million to €263 million. This bilateral expansion reflects Morocco's growing role in the European automotive supply chain, supported by the EU-Morocco Association Agreement, competitive labour costs, and investments by major OEMs and Tier-1 suppliers in Moroccan assembly plants.

Source: Top partners

The Collapse of EU–Russia Trade

EU exports to the Russian Federation collapsed by 96.8%, from €134 million in 2015 to just €4.2 million in 2025. This near-total cessation reflects the impact of EU sanctions following Russia's invasion of Ukraine in 2022. Russia's coefficient of variation in export trade (0.70) is among the highest of any partner, underscoring the volatility introduced by this geopolitical rupture.

China: A Two-Way Relationship Under Strain

China occupies an ambivalent position in this market. It is simultaneously the EU's second-largest export destination (€570 million in 2025, down 18% from 2015) and its fastest-growing major import source (€415 million in 2025, up 256%). This suggests that while EU producers continue to sell into the Chinese market — likely higher-value components for European-assembled vehicles in China — Chinese suppliers are rapidly gaining market share within the EU.

Brexit's Visible Impact on the United Kingdom

EU exports to the United Kingdom fell by 37.8%, from €626 million to €389 million, making the UK the only traditional top-tier export partner to experience such a steep decline outside of geopolitical conflict. While the UK remains the EU's largest single-country export market for this product, the contraction is consistent with broader patterns of post-Brexit trade friction, including rules-of-origin requirements and customs procedures.

3. Production Growth, Internal Specialisation, and Emerging Vulnerabilities

EU Production Expanded Despite Trade Headwinds

EU domestic production of CN 870894 grew robustly over the period. Production volume rose by 65.8%, from 383,501 tonnes in 2015 to 635,815 tonnes in 2025, while production value increased by 41.4%, from €5.57 billion to €7.87 billion. Production peaked in value terms at €9.32 billion in an intermediate year. This expansion indicates that the decline in exports is not due to a contraction of EU manufacturing capacity; rather, it reflects the redirection of output toward domestic OEM assembly and the increasing competitiveness of non-EU suppliers in third-country markets.

Regional Specialisation Concentrated in Central and Eastern Europe

Specialisation data for 2025 reveals a clear geographic pattern: the most specialised EU producers of steering components are located in Central and Eastern Europe. Romania (RSCA: 0.77), Hungary (0.63), Poland (0.42), and Slovakia (0.30) lead the ranking, reflecting the deep integration of these countries into European automotive supply chains as manufacturing platforms. By contrast, countries such as Cyprus, Ireland, Greece, Malta, and Denmark show negligible specialisation in this product category.

Concentration Patterns: Import Sources Diversifying Less, Export Markets More

The Herfindahl-Hirschman Index (HHI) for import value rose from 1,068 in 2015 to 1,239 in 2025 (+16%), indicating that import sources have become more concentrated — a potential vulnerability. For exports, the HHI fell from 1,424 to 1,167 (−18%), suggesting that EU exporters have successfully diversified their destination markets. The concentration of imports is a risk factor: a disruption affecting a key supplier — particularly Morocco, given the volatility of its trade flows (CV of 0.91 for imports) — could have outsized consequences.

Product Sub-Segment Dynamics

At the subheading level, the data reveals important compositional shifts:

• Subheading 87089435 (complete steering wheels, columns and boxes, excluding those for industrial assembly) is the dominant export category (€2.03 billion in 2025, representing 75% of total exports by value). Its export volume peaked around 2017–2018 and has since stabilised.
• Subheading 87089420 (components for industrial assembly of specific vehicle types) has experienced the steepest decline: export value fell from €751 million in 2015 to €172 million in 2025 (−77%), and volume fell from 45,572 tonnes to 12,761 tonnes. This suggests a structural shift away from EU-based industrial assembly of the vehicle categories covered by this subheading.
• On the import side, 87089435 has seen the most rapid growth (from €333 million to €1.03 billion, +209%), while 87089499 (miscellaneous parts) remains the largest import category by volume (93,456 tonnes in 2025).

Conclusion

The EU trade in steering wheels, columns, and boxes (CN 870894) over 2015–2025 tells a story of a sector in transition. The EU retains a significant trade surplus and has expanded domestic production, but its external competitive position has weakened considerably. Imports have nearly doubled in value, driven by the rapid growth of suppliers in Morocco, China, Tunisia, and Japan, while exports have declined — dragged down by the collapse of trade with Russia, the impact of Brexit on UK-bound shipments, and a structural retreat from the industrial-assembly sub-segment.

Morocco's emergence as the EU's fastest-growing trade partner in this category is arguably the defining geographic development of the period, reflecting a broader reconfiguration of the European automotive supply chain toward the southern Mediterranean. Meanwhile, the increasing concentration of import sources (rising HHI) poses a strategic vulnerability, even as EU exporters have managed to diversify their own customer base.

Looking ahead, the key dynamics to watch will be the continued evolution of EU–China trade relations (given China's dual role as market and competitor), the sustainability of Morocco's supply-chain role, and the impact of the automotive industry's transition to electric vehicles on steering-component demand and sourcing patterns.