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The Automotive Industry amid Decarbonisation and Competitiveness: An Italian-German Cooperative Framework

11/06/2025

The automotive industry in the European Union is at a crossroads. The industry faces the burden of decarbonisation targets, rising global competition and declining industrial competitiveness. Italy and Germany are strategic and potentially complementary players in the sector. Increasing bilateral cooperation and their shared efforts for the sector transformation would generate positive benefits for their industries and Europe’s competitiveness. This study assesses the evolution of the sector in the two countries, outlining both their peculiarities and their shared priorities and challenges. It outlines the broader European framework for the sector and the national policies designed to foster the transition of the automotive sector towards zero- and low-emission vehicles.

Paper prepared in the framework of the project “An Italian-German dialogue on European industrial decarbonisation and competitiveness” and presented at the conference “An Italian-German Dialogue on Industrial Decarbonisation of the Automotive Sector” held in Berlin on 12 June 2025.

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