Market evolution: Steering wheels and columns (CN 87089435) — 2015–2025

Introduction

This report examines the evolution of EU trade in steering wheels, columns, and boxes (customs code 87089435) over the period 2015–2025. The product covers steering components for tractors, passenger vehicles, goods transport vehicles, and special purpose motor vehicles, excluding those destined for industrial assembly under subheading 8708.94.20.

The EU's steering components market has undergone significant transformation over the past decade. While the European Union remains a net exporter of these products, with a trade surplus of €993 million in 2025, the structure of both imports and exports has shifted markedly. Import values have tripled over the period, new sourcing geographies have emerged, and Central and Eastern European member states have consolidated their positions as production and export hubs. At the same time, geopolitical disruptions—most notably the collapse of trade with Russia following the 2022 invasion of Ukraine—have reshaped trade patterns.

The analysis draws on data from the EU Trade Dashboard and is structured around three principal dynamics: the asymmetric growth of imports relative to exports, the rapid rise of Morocco and other Southern Mediterranean suppliers, and the evolving intra-EU specialisation landscape.

1. A Widening Trade Gap: Import Growth Far Outpaces Export Expansion

EU exports grew steadily but modestly over the decade

EU exports of steering components rose from €1.55 billion in 2015 to €2.03 billion in 2025, representing a cumulative increase of 30.5%. In volume terms, exports grew from 79,119 tonnes to 91,819 tonnes (+16.1%). The average unit export price edged up from €19,613 per tonne to €22,057 per tonne (+12.5%), indicating a gradual shift toward higher-value products. The peak year for export value was reached in 2022 at €2.20 billion, after which a mild contraction occurred—likely linked to the disruption of supply chains and the loss of the Russian market.

Imports tripled in value, driven by both volume and price increases

The most striking trend in the data is the explosive growth of EU imports. Import values surged from €333 million in 2015 to €1.03 billion in 2025, an increase of 209.5%. This was driven by a near-doubling of import volumes (from 21,471 tonnes to 52,337 tonnes, +143.8%) as well as a 27% rise in average import prices (from €15,526 to €19,717 per tonne). The price differential between imports and exports narrowed over the period, suggesting that imported steering components are increasingly competing in the same quality tiers as EU-produced goods.

The EU's net exporter position is eroding but remains robust

Despite the faster growth of imports, the EU maintained a positive trade balance throughout the period, peaking at €1.62 billion in 2019 before declining to €993 million in 2025 (−18.5%). The net import reliance indicator, which is negative when the EU is a net exporter, moved from −7.9% to −10.2%. Paradoxically, this slight improvement in the last period masks the longer-term trend: the ratio hit its most export-heavy point at −32.7% in 2019, meaning the EU's surplus relative to total trade has actually declined substantially since then. The surge in trade intensity (from 20.5% to 47.2%) and export propensity (from 14.6% to 34.1%) confirms that the EU's steering components sector has become far more integrated into global value chains over the decade.

2. A New Geography of Sourcing: The Rise of Morocco and Southern Mediterranean Suppliers

Morocco emerged as the EU's most dynamic import partner

The single most dramatic shift in the partner landscape has been the rise of Morocco. EU imports from Morocco surged from just €28 million in 2015 to €312 million in 2025—an extraordinary increase of 1,032%. Morocco overtook traditional suppliers such as Korea and Tunisia to become the EU's largest single source of imported steering components. This growth reflects Morocco's emergence as a major automotive manufacturing hub, supported by investments from European OEMs (particularly French and German groups) and Morocco's proximity to EU markets, competitive labour costs, and preferential trade arrangements under the EU-Morocco Association Agreement.

Tunisia and China also posted strong import growth

Tunisia, another North African supplier benefiting from proximity and established automotive component manufacturing, saw its exports to the EU more than double from €118 million to €266 million. A notable price shock was detected in Tunisian imports in 2018, with a 35% price shift and an abnormality score of 3.7, suggesting a possible reconfiguration of sourcing or product mix.

China's contribution to EU imports nearly quadrupled from €30 million to €118 million (+299%), though from a relatively low base. Japan's imports surged even more dramatically (+939%), rising from €9.5 million to €98 million, likely reflecting Japanese OEMs' expansion of their European production footprint and associated Just-in-Time supply chains. The volatility of Japanese import flows (CV: 0.83) and especially Morocco's (CV: 0.96) is notably high, consistent with these being relatively new and fast-growing supply relationships.

The UK remained the EU's largest export destination despite Brexit

On the export side, the United Kingdom continued to be the EU's single largest partner for steering component exports, absorbing €341 million in 2025 (+18.3% since 2015). This reflects the deep integration of UK-based vehicle assembly operations (including those of major German, French, and other European manufacturers) with EU-based component supply chains. China was the second-largest destination at €480 million, essentially flat over the period (+0.9%), while exports to Türkiye grew spectacularly (+246% to €320 million), consistent with the expansion of automotive assembly in that country.

Russia's collapse was the most dramatic export disruption

The most consequential shift on the export side was the near-total collapse of exports to Russia: from €71 million in 2015 to just €135 thousand in 2025 (−99.8%). This reflects the impact of EU sanctions imposed following Russia's invasion of Ukraine in 2022, combined with the withdrawal of Western automotive manufacturers from the Russian market. Conversely, exports to Morocco grew by over 1,000% (from €12 million to €135 million), and to Mexico by 193% (from €29 million to €84 million), suggesting some redirection of export flows toward emerging automotive markets.

3. Central and Eastern Europe Consolidates as the Production Core

EU production grew strongly, led by CEE member states

EU production of steering components expanded significantly over the period, with output rising from 383.5 million kg (approximately 383,500 tonnes) to 635.8 million kg (+65.8%) in volume, and from €5.57 billion to €7.87 billion (+41.4%) in value. This growth was disproportionately driven by Central and Eastern European (CEE) member states. The specialisation data for 2025 reveals the following ranking:

Romania stands out with an RCA of 10.87, indicating extreme specialisation in this product relative to overall trade. Poland accounts for the largest share of EU production (20.6%), followed by Romania (18.1%) and Hungary (11.9%). Together, these three countries account for over half of EU output.

Intra-EU export growth reflects shifting production geography

The dominance of CEE countries is mirrored in intra-EU export data. Germany remains the largest single exporter (€1.01 billion in 2025), but its share is declining (−7.2% over the period). Meanwhile, Hungary's exports surged by 1,796% to €234 million, and Czechia's by 684% to €102 million. Romania grew by 23% to €122 million. These figures suggest a continued eastward migration of steering component production within the EU, driven by lower labour costs, proximity to OEM assembly plants (particularly those of German and French manufacturers), and EU structural investment.

Export diversification increased while import concentration remained stable

The Herfindahl-Hirschman Index (HHI) for EU exports declined from 1,747 to 1,333 (−23.7%), indicating that export destinations have become more diversified over the period. This is consistent with the EU's pivot toward new markets (Türkiye, Mexico, Morocco) to compensate for the loss of Russia and softening demand in the US. By contrast, import concentration remained relatively stable (HHI: 1,826 to 1,870), reflecting the continued dominance of Morocco, Tunisia, and China as sourcing partners—though Morocco's growing weight may further concentrate imports in future years.

Conclusion

The EU market for steering wheels and columns (CN 87089435) has undergone a structural transformation between 2015 and 2025. The EU remains a major net exporter with a surplus of nearly €1 billion, but the import side of the equation has grown at a pace that fundamentally alters the competitive landscape. Imports tripled in value to over €1 billion, driven by the rapid emergence of Morocco as a premier sourcing hub, strong growth from Tunisia and China, and the deepening of Japanese supply chains into the European market.

On the supply side, production has increasingly concentrated in Central and Eastern Europe, with Romania, Hungary, and Poland establishing themselves as specialised and high-growth producers. Germany, while still dominant, is seeing its relative position erode as CEE states capture a growing share of both production and exports. The collapse of exports to Russia following 2022 sanctions, and the partial redirection of flows toward Türkiye, Morocco, and Mexico, reflect a broader geopolitical reconfiguration of automotive supply chains.

Looking ahead, key risks include the high volatility of newer supply relationships (particularly with Morocco and Japan), the growing dependency on North African suppliers, and the potential for further trade policy disruptions. The continued narrowing of the trade surplus, if sustained, could shift the EU from a position of structural export strength to one of greater import dependence in this critical automotive component segment.