Electric Vehicle Transition: Europe’s Challenges in a Global Context
Abstract
The European automotive industry faces competitive challenges in light of electrification, driven by the rise of Chinese manufacturers and the reshaping of policies within the European region. Despite the high interest in the daily news, the topic remains fragmented into individual subtopics such as sustainability, supply chains and labour, and requires a data-supported and systematic analysis of the competitive challenges of the automotive industry. Therefore, this research's objectives were to review the current state of the global automotive market, analyze proposed solutions for maintaining the competitiveness of European manufacturers, and develop a projection of the global electric vehicle market's development. The research was based on a systematic review of the literature and the analysis of various data sources, incorporating the method of triangulation of sources to ensure the credibility of the results. Key findings indicate that European manufacturers face difficulties competing with affordable Chinese electric vehicles, which are increasingly entering the European market, due to high costs and limited access to key technologies such as batteries and semiconductors. Proposed solutions include investing in research and development, improving supply chains, and fostering closer collaboration with the energy and technology sectors. The market projection for 2030 suggests that electric vehicles will account for more than 57% of global annual sales, with China maintaining a leading market share, while Europe, due to delays in adapting to electric vehicle production, will gradually lose its share of the total sales in the industry.
Keywords: automotive industry, China, Europe, electric vehicles, automotive industry future
© 2026 Serbian Geographical Society, Belgrade, Serbia.
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