Challenges and Outlook for the “Electrification” Strategy in the European Automotive Industry

Hosoya Hiroshi

doi:10.11444/sisj.2020.111

The global automobile industry is said to be undergoing a “once-in-a-century” transformation. The core of this change is recognized as the CASE revolution, which refers to the trends of the times where four factors, such as Connected, Autonomous, Shared & Service and Electrification, are top priorities to be tackled with. The most intense trend among them is the promotion of “electrification” of vehicles such as the introduction of electric cars. “Electrification”, which is currently progressing, needs to be understood as part of the CASE revolution. The changes in the business environment represented by the CASE revolution have brought significant changes to competition and coordination in the global automotive industry.<br/> The purpose of this paper is to analyze how major European automotive makers and suppliers are responding to “electrification” in this major revolution and to clarify their characteristics.<br/> German automaker Volkswagen is in the one step ahead of “electrification” strategy among the major manufacturers. However, there are various factors which determine the current technological development level regarding the performance and cost of in-vehicle batteries, delays in the development of charging infrastructure and electric energy supply infrastructure. Considering these various circumstances, the feasibility of the strategy would be poor.<br/> Currently, the “electrification” of the automotive industry in Europe is being promoted through the strengthening of social and/or legal regulations by the EU and its member countries. The development in the context of “regulation driven” is one of the features of Europe. The key for future progress will be how the initiatives for electrification can be integrated with other areas of CASE to develop new businesses.

Challenges and Outlook for the “Electrification” Strategy in the European Automotive Industry

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