Unleashing Europe's Economic Potential in the Electric Vehicle Transition: Strategies for Innovation and Growth
The European automotive industry, a significant economic contributor, faces disruption from electric mobility, potentially reducing European production value added by $400 billion over the next decade. However, strategic innovation and collaboration could help maintain or even increase current GVA levels. In this presentation, we will be covering the following:
- In 2023, the European automotive industry contributed $1.9 trillion in gross value added (GVA), with technology and car exports creating $620 billion in value.
- Electric mobility could add $240 billion to $300 billion in GVA from after-sales support and services by 2035.
- However, based on current trends, European production value added could drop by $400 billion over the next decade, assuming European OEMs’ domestic market share falls to 45 percent from 60 percent and lower value added in BEV compared to ICE
- Europe and European OEMs could still reap the full benefits of the BEV disruption and even slightly increase current GVA from production by pursuing innovative strategies, participating in growing global markets, strengthening industry collaboration, and implementing effective policies.
Tuesday 03 June 13:30 - 14:00 E-Mobility Stage
Global Market Trends and Challenges
The European automotive industry, a significant economic contributor, faces disruption from electric mobility, potentially reducing European production value added by $400 billion over the next decade. However, strategic innovation and collaboration could help maintain or even increase current GVA levels. In this presentation, we will be covering the following:
- In 2023, the European automotive industry contributed $1.9 trillion in gross value added (GVA), with technology and car exports creating $620 billion in value.
- Electric mobility could add $240 billion to $300 billion in GVA from after-sales support and services by 2035.
- However, based on current trends, European production value added could drop by $400 billion over the next decade, assuming European OEMs’ domestic market share falls to 45 percent from 60 percent and lower value added in BEV compared to ICE
- Europe and European OEMs could still reap the full benefits of the BEV disruption and even slightly increase current GVA from production by pursuing innovative strategies, participating in growing global markets, strengthening industry collaboration, and implementing effective policies.
Speakers
Specialist Consulting, McKinsey & Company
