Regulation and Competitiveness | EU Automotive Industry | Research

Regulation and Competitiveness of the EU Automotive Industry

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In light of the European Commission’s goal to revive Europe’s industry by promoting an innovative, clean tech based economy this report explores the links between regulations, including carbon emission targets, and the current competitiveness of the EU automotive industry.

In this report we explore the regulatory framework and the competitiveness of the EU automotive industry. The European Commission envisages the renaissance of Europe’s industry by promoting an innovative, clean technology based economy. However, we find that the EU automotive industry is disproportionately affected by decarbonisation compared to other industrial and manufacturing sectors. This, combined with a multitude of competitive pressures the industry is facing, resulted in the industry losing investment and making financial losses. We find that the problem is likely to get worse, and therefore the prospect of some kind of industrial renaissance, driven by innovation, and fuelled by progressively tighter regulations, appears increasingly unrealistic for the EU automotive sector.


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