€60bn Set To Be Invested By The German Car Industry In Electric And Self-Driving Cars

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The automotive industry of Germany is making some preparations for the future of mobility as it plans to invest almost 60 billion euros (£51.5 billion) on electric vehicles and driverless technologies over the next three years.

Before the start of the Geneva motor show that is scheduled this week, the boss of VDA, an industry body for the automotive sector in Germany, stated: “The ramp up of electric mobility” is coming to Europe as regulatory pressure and new competition is forcing change to the country’s dominant car industry.”

In a statement, Bernhard Mattes, the President of the VDA, stated: “We will invest over 40bn euros in electric mobility during the next three years, and another 18bn euros will be invested in digitisation and connected and automated driving.”

The ambitions of Germany to shift to autonomous driving and electric vehicles come as the sector at large reckons with some new challenges.

Concerns are intensifying that the industry has reached “peak car” as the ride-hailing industry, dominated by the likes of Lyft and Uber, are seeing people forego vehicle purchases, while some new modes of transport such as electric scooters could earn favour in various cities.

Across the globe, vehicle sales have stalled and are yet to reach100 million vehicle sales annually, despite the previous forecasts of some analysts previously that the milestone would be reached by this year.

There is also a growing body of evidence that points to the effect that the carbon emissions from diesel and petrol fuelled-vehicles have had on climate change.

Mattes added that “the EU’s CO2 targets cannot be achieved by 2030” unless car businesses make some significant investment into cleaner energy vehicles and appropriate regulatory conditions are introduced across the bloc.

A study that was published by the Joint Research Centre of the European Commission last December predicts that up to eight gigafactories would have to be built across the globe every year between 2030 and 2040 as the demand for batteries is expected to increase.