Car Industry Faces Overhaul: Closures Loom Amid EV Surge

Several European and North American car factories are at risk of closure or sale due to overcapacity and competition, driven by emission targets, tariffs, and China's EV dominance. With over half of vehicle models expected to be EVs by 2030, traditional automakers may need to adapt or collaborate with tech firms.

Several car factories across Europe and North America face potential closures or sales this year, according to a report by Gartner. The automobile industry's struggle with overcapacity and competition has prompted companies to consider reducing production capacity by 2025.

Pressure mounts in high-cost regions, where automakers might adopt pragmatic approaches due to increasing political and societal challenges. As China's domination in electric vehicle (EV) technology grows, Chinese brands may invest in European plants to bypass trade barriers.

Legacy carmakers, aiming to meet EV targets and facing looming emission rules, may forge partnerships with tech firms to boost their presence in the EV market.

(With inputs from agencies.)