Europe’s auto industry reaches a turning point. What direction now?

The automotive industry in Europe has reached a turning point. Stricter emissions rules, the growing influence of electric vehicles, and the arrival of major Chinese manufacturers have shifted the direction of the industry. The road ahead is far from clear.

With passenger vehicle sales down 20% since the Covid economic shut-down in 2020, uncertainty surrounding further regulations, price volatility in the electric vehicle market, and the unclear policies of Chinese suppliers, automotive product and service providers in Europe need flexible strategies to keep on track. Rigid approaches based on historic performance run a high risk of failure.