Schaeffler shares dropped sharply after the auto supplier slashed its sales expectations for the medium term amid a darkening backdrop for the industry.

The German company, supplier to major automakers like BMW, Volkswagen and Ford, now expects sales for 2028 of between €24-26B ($27.7 billion-$29.98 billion), down from previous guidance of €27 billion to €29 billion, it said Friday. Its shares fell nearly 10% in European morning trading to €7.30 following the news.

The cut to expectations was driven by significantly reduced market expectations, especially for passenger cars and light commercial vehicles, Schaeffler said. Many of Europe’s auto players are struggling with fiercer competition, notably in China, as well as generally weak demand.