1、October 2024Automotive&Assembly PracticeEuropes economic potential in the shift to electric vehiclesThe growth of electric vehicles presents both opportunities and challenges for Europes economy.How can the automotive industry thrive in an increasingly electric world?This article is a collaborative

2、effort by Andreas Tschiesner,Patrick Hertzke,Patrick Schaufuss,and Ruth Heuss,with David Labourier,Guillaume de Dampierre,Jan Paulitschek,Marco Groth,Milo Boers,and Timm Hfer,representing views from McKinseys Automotive&Assembly Practice.Executive summaryThe automotive industry has been a stronghold

3、 of the European economy for decades but is now facing disruption from electric mobility.In 2023,the 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 in after-sales

4、support and services by 2035.But based on current trends,European production value added could drop by$400 billion over the next decade.This assumes that European OEMs global market share falls to 45 percent,from 60 percent,and that the value added from European OEMs internal combustion engine(ICE)v

5、ehicle production is 85 to 90 percent,50 to 60 percent for battery electric vehicles(BEVs)produced in Europe by non-European OEMs,and 15 to 20 percent for imported BEVs.Yet in turn,Europe and European OEMs could still reap the full benefits of the BEV disruption and even slightly increase current GV

6、A from production,provided automotive companies pursue innovative strategies and participate in growing global markets,strengthen industry collaboration,and implement effective policies.Europe has long been a pivotal force in the global automotive industry,renowned for being the birthplace of the au