The European automotive industry is undergoing a critical transformation from combustion engine vehicles to electric cars. The report highlights the urgent need for Europe to establish global electric vehicle leadership to sustain economic value and create new jobs. Under the best-case scenario, which includes maintaining the 2035 CO2 zero-emission car goal and strengthened industrial and demand policies, Europe could reach 16.8 million car production units by 2035, keeping current job levels. This scenario would also secure over 900 GWh of battery manufacturing and over 100,000 new jobs in the sector, while increasing the charging industry's economic output to €79 billion by 2035. In contrast, if the EU walks back from its 2035 goal and fails to deliver adequate industrial policy action, Europe would experience a significant decline in car production, jobs, and economic value. The report emphasizes the importance of maintaining the 2030-2035 car CO2 targets, introducing production aid for EV batteries, implementing the EU Alternative Fuels Infrastructure Regulation, and mainstreaming social conditionality for quality jobs to secure Europe's leadership in the global EV market and reap the geoeconomic benefits of the automotive transformation.
