How countries adapt to electrification has huge implications for the survival of their auto industries in the years to come. In this context, we construct a ranking based on indicators such as policy, infrastructure and critical components to compare Europe, a core protagonist of the automotive industry, with other key automotive producers and determine who is best prepared for the disruption of the century and who lags behind.
We find that China leads the world on electrification, topping our ranking for six out of nine indicators, thanks to a powerful policy mix, subsidies for manufacturers and ambitious plans to increase EV charging points. But Europe trails behind China, the US and Japan, especially in terms of policy, infrastructure and critical components.
Despite these headwinds, Europe does stand a chance to regain leadership, given European car manufacturers’ financial strength and ability to translate R&D capability into strategic innovation. But these companies will need to deploy capital to scale up quickly and promote adoption amidst a relative lack of political support, as well as ensure their weight as partners in broader mobility ecosystems.