The global automotive industry is currently undergoing a remarkable transformation, experiencing unparalleled changes in technology and market dynamics that are both thrilling and daunting. A massive power struggle is unfolding on this grand stage, pitting the established European car industry against the swiftly rising Chinese car industry.

Traditionally, the European car industry, featuring brands such as Mercedes, BMW, Volkswagen, and Renault, has led the way in innovation, renowned for crafting high-quality, luxury vehicles that showcase engineering excellence and sophisticated design. Yet, in today’s age of electric vehicles (EVs) and self-driving technology, the dominance of Europe’s car makers is facing growing competition from the Chinese car industry.

China, home to giants like BYD, Geely, and NIO, has not only become the world’s largest car market but also a major force in electric vehicle (EV) technology and production. With the backing of a supportive government, comprehensive infrastructure, and a vast domestic market keen on embracing EVs, China has made significant strides in the new energy vehicle sector.

In this intense competition, Europe’s initial approach has been mostly defensive, aimed at safeguarding its established strengths. Although this cautious strategy may seem sensible, it carries the risk of becoming complacent and reactive, rather than forward-looking. The adage “The best defense is a good offense” holds true in this scenario. Rather than resisting change, the European car industry should proactively seize the opportunity to lead and shape the future.

Review Business Models.

Selling cars is old news. The current focus is on providing electric mobility solutions. Europe has perfected the art of making cars, but the future requires a new set of skills: software development, data analysis, and battery technology. Investing in research and development, supporting electric vehicle (EV) startups, making charging stations as ubiquitous as coffee shops, and incentivizing electric driving are key. It’s about transporting people, not just selling cars.

Embrace the ‘New Mobility’ wave.

Today, cars are valued not just for their power but for their ability to enhance smart mobility. The aim of modern mobility is to forge a more connected, sustainable, and efficient transportation system. While there are obstacles, such as regulatory challenges and the need for infrastructure evolution, the prospects of new mobility to change urban travel are immense. Companies like Uber have transformed urban transport, making it possible to book a ride within minutes and share it with others headed the same way. Similarly, car-sharing services like Car2Go allow you to rent a car only for the time you need it, offering a cost-effective and flexible alternative.

In summary, in this epic showdown between automotive giants, the victor will be the one who innovates most quickly, adapts intelligently, and drives the industry forward.

This article is part of our ‘New Mobility’ special feature, examining the revolutionary changes sweeping through the automotive industry: