MUNICH (Reuters) -Bosch, the world's biggest auto parts supplier, expects competitive pressure in the sector to continue next year, its CEO said on Tuesday, as the industry grapples with growing trade barriers and price declines.

Stefan Hartung, speaking to Reuters at the IAA auto show in Munich, said 2026 would continue to see significant innovation and technological developments in the global automotive sector.

"But believe me, the industry will remain under pressure. It will continue to be limited in terms of volume. Structural adjustments will continue due to the shift in value creation, and it will remain a highly competitive sector where there will be a fight over every cent," he told Reuters.

His comments underscore the many crises that have hit European automakers and, by extension, their suppliers, including U.S. tariffs on auto and car parts imports, the impact of which Hartung said could not yet be quantified.

He said the next few months should bring clarity in this regard, adding the current situation - with U.S. tariffs of 27.5% still upheld despite the EU taking steps that would enable Washington to lower them to 15% - could not yet be described as stable.

Hartung said Bosch's sales could grow by about 2% in 2025 from the 90.5 billion euros ($106 billion) generated last year, but said it was too early to put a firm number on it. The group has forecast sales growth of 1-3% this year.

Asked whether Bosch was planning to enter battery cell production - a step it had decided against years ago over the huge costs - Hartung said that their view had not changed.

"This is no easy terrain, and we will definitely not make any spontaneous decisions now that could ultimately prove dangerous for the company."