Abstract:

The automotive sector is currently at the centre of a global transformation, driven by four key trends - electrification, autonomous driving, sharing and connected cars. This Policy Contribution investigates the position of the European automotive industry and envisages that the industry will have to move into higher gear to meet the global – notably Chinese – competition. This policy contribution formulates a broad policy framework for the deployment and production of electric vehicles in Europe, combining demand and supply-side instruments. While Europe cannot follow China in the adoption of centrally-planned industrial policy measures, it can do more to stimulate the transformation of its automotive industry through more ambitious policies.