The Transformation of the European Car Industry

Electrification and Its Challenges

Abstract

The European automotive industry faces many 21^st.century challenges, with sustainability and climate protection as key objectives. Among these, the European Parliament’s decision to mandate zero emission passenger cars and light commercial vehicles from 2035 marks a transformative shift. This cornerstone of the “Fit for 55” climate package carries broad economic, social and political implications, requiring significant adjustments across the automotive value chain and presenting major hurdles for stakeholders.
This manuscript explores the sector’s electrification efforts, focusing on the tension between sustainability goals and economic impacts. It highlights disparities in electric vehicle affordability and accessibility across Europe, which risk deepening socio-economic inequalities, and questions the environmental and equity outcomes of weight-based regulatory incentives favouring premium models.
Beyond assessing the feasibility of emissions targets, the study critically examines whether the EU’s focus on electric vehicles aligns with broader climate goals or creates new challenges. Addressing these issues aims to illuminate the immediate and long-term implications for the evolution of the automotive industry and Europe’s socio-economic landscape.