Europe’s mobility industry faces converging pressures to transform

Mobility
Q+
26/09/2025 Perspective

Managing the transition to electric vehicles (EV) and containing costs are two of the biggest challenges facing the mobility industry. For many mobility companies in Europe those challenges are closely entwined. High EV transition costs are weakening their ability to invest in solutions that could strengthen the mobility industry and improve their profitability.  

The dial-back of EU subsidies and incentives, weak economic growth and hesitancy among potential buyers have stalled EV sales in Europe. While rising vehicle production and financing costs coupled with increasing regulatory demands are squeezing profitability.

Pricing volatility for new EVs has put further strain on leasing companies, used vehicle suppliers and finance providers. Price cuts on new EVs are undermining the residual value of used EVs, forcing many owners of those assets to absorb substantial write-offs. Geopolitical uncertainty, the global ambitions of Chinese vehicle manufacturers, and rapid advances in technology are putting additional pressure onto European mobility firms.

Leaders from the mobility industry in Europe addressed the major challenges facing the sector and identified potential solutions at an online event hosted by Qorus and consulting firm CVA. The event marked the release of the Qorus-CVA 2025/26 Mobility Report which analyzes several major industry transitions. It includes insights from companies such as BYD, Allianz Partners, BMW Financial Services, BNP Paribas, and Société Générale.

Leading discussions at the online event were representatives from CVA, CaixaBank, Crédit Agricole (CA), and Lloyds Banking Group. The growing influence of EVs and the critical need to contain costs were recurring themes. Nearly two thirds of the executives polled at the event reported that developing EV business models was one of their top three challenges. Almost half of the executives ranked reducing costs a top-three priority.

The event focused on four factors forcing transformation in the mobility industry.

  • Managing EV transitions through multicycle strategies
  • Building partnerships across mobility ecosystems
  • Responding to Chinese OEM expansion
  • Leveraging AI and digital transformation

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