Europe's car manufacturers are changing: Will they master e-mobility?

Europe's car manufacturers are changing: Will they master e-mobility?

The European automotive industry is facing one of the greatest challenges in its history. The picture is changing drastically as vehicle electrification and pressure from abroad, particularly from China, increase. According to a report by crown The number of electric vehicles in Austria increased by an impressive 41 percent in 2023 compared to the previous year, increasing the total number to over 150,000 vehicles in this segment. This rapid development is also expected in Europe, underlining the need for a comprehensive transformation of the industry.

Transformation and competition

The McKinsey study “A master plan for Europe’s automotive industry” makes it clear that European manufacturers must develop a holistic strategy in order to assert themselves in this dynamic environment. The challenges are great: Energy costs in Europe are 2-3 times higher than in China and the USA, and geopolitical tensions place additional strain on supply chains. The European automotive industry has lost market share since 2019, while Chinese manufacturers have been steadily growing and now account for over 45% of the electric car market in China, the study shows. The share of electric vehicles in new registrations has already exceeded 51%.

The future of the industry depends critically on the development of new skills, particularly in the areas of software and battery production. The high proportion of foreign production, especially for battery cells, ensures dependence on China. 70% of the batteries come from Chinese production. To ensure competitiveness, European companies must invest in new technologies and accelerate their development processes in order to keep up. This sense of urgency also calls for strong collaborations between manufacturers, suppliers and policymakers to create a sustainable mobility ecosystem, such as McKinsey highlights.