The Economic Impact of Electric Vehicles on the Automotive Industry: A Sectoral Analysis

Abstract

The rapid adoption of electric vehicles (EVs) is reshaping the automotive industry, with significant economic implications across various sectors. comprehensive sectoral analysis of the economic impact of EVs, examining the effects on automotive manufacturing, supply chains, labor markets, and related industries such as energy and infrastructure. The shift towards EVs is driving innovation and investment in new technologies, leading to the emergence of new business models and altering competitive dynamics within the industry. However, it also presents challenges, including disruptions to traditional manufacturing processes, shifts in labor demand, and the need for substantial investments in infrastructure. the opportunities and challenges faced by different stakeholders in the automotive value chain and discusses the broader economic implications of the transition to electric mobility. By understanding these impacts, policymakers and industry leaders can better navigate the transition and ensure that the economic benefits of EV adoption are maximized while mitigating potential disruptions.