Abstract:

The global auto sector has been operating in comparatively steady conditions for decades. The European Union, Korea, Japan, the United States, and, more recently, China are home to the biggest automakers in the world. The automobile sector plays a significant role in the economies of these nations. Many of these automakers have been at the forefront of internal combustion engine (ICE) technology for decades, and their highly integrated and optimized supply chains enable the low-cost production of cars and their parts.

But during the last 15 years, the growing popularity of electric vehicles has put this business model under increasing pressure. Over one in five vehicles sold worldwide in 2024 were electric. For established automakers, these developments are becoming more and more difficult as they must manage a shift in vehicle technology that is occurring at varying rates in various regions. This research highlights the key possibilities and challenges that lie ahead while offering a solid empirical foundation to help governments and industry make decisions. First-of-its-kind analysis based on an examination of market data, expenses, and industry player consultations are included. The main goal is to comprehend how the significant changes would affect economies and the energy industry.