How legacy car companies are skewing debate and slowing transition to electric cars

A recent survey conducted by the University of Sussex and the Fraunhofer Institute for Systems and Innovation Research (ISI) reveals that Germany’s automotive industry is more advanced in its transition to electric vehicles than public discourse suggests. Among 74 industry managers surveyed in late 2025, 61 percent of companies are rapidly progressing towards e-mobility, while 39 percent are identified as slower to transform. Only a small fraction, about one in eight, have yet to begin shifting away from combustion engine vehicles, highlighting a significant but uneven pace of change within the sector. The study highlights concerns that a minority of laggard firms are disproportionately influencing public debate and policy discussions, potentially hindering the overall transition to electric mobility. The report warns that weakening the phase-out of combustion engines would unfairly penalise companies that are leading innovation in net-zero technologies and could disrupt the global competitiveness of Germany’s automotive industry. Despite the majority of firms pushing forward, political support is perceived as lukewarm, with recent government actions sending mixed signals about the future direction of transport decarbonisation. Germany’s government has recently reintroduced subsidies for electric vehicles, yet it has simultaneously advocated for a softening of the European Union’s planned 2035 ban on new combustion engine car sales. This ambivalence, coupled with temporary tax cuts on petrol and diesel fuel in response to geopolitical tensions, has created uncertainty within the industry. The report emphasises that consistent and credible political backing is crucial for maintaining momentum, warning that frequent policy reversals undermine planning certainty and investment confidence among manufacturers. Karoline Rogge, project coordinator for the survey, stresses the importance of recognising and supporting companies already committed to electric mobility, as these firms are key to restoring Germany’s leadership in automotive innovation. The report cautions that the EU’s phase-out policies remain fundamental to driving the sector’s transformation and that weakening these measures could fragment the automotive ecosystem. Ultimately, the study calls for stable, long-term policy frameworks to ensure Germany’s automotive industry can successfully navigate the transition to a climate-neutral economy.