Suppliers in the automotive industry voicing worries that insufficient infrastructure could hinder a smooth mobility transition success

In the pursuit of a greener future, the automotive supply industry is making strides towards climate-neutral mobility. However, a recent Pulse Check survey published on the website highlights several challenges that need to be addressed to ensure a successful transition.

According to McKinsey research, the current rollout of the recharging network in EU countries needs to accelerate four times faster to meet the needs of future electric vehicles (EVs). This acceleration is based on the target of 3.4 million charging points by 2030, a requirement for the rapid uptake of EVs.

The need for this significant acceleration is not lost on the industry. Nearly all automotive suppliers (98%) are concerned about insufficient charging and refueling infrastructure undermining efforts towards climate-neutral mobility, as revealed by the 13th edition of the Pulse Check survey by McKinsey.

Despite 64% of suppliers expecting revenue growth in 2023, profit expectations remain bleak. Roughly one in four suppliers are operating at a loss, and 77% of respondents indicate that their operational profitability level is below 5%. Cost pressures and the ongoing semiconductor shortage are causing suppressed volumes and weighing on the profitability of the sector.

Long-term investment capabilities of the sector are under increasing pressure, with 37% of suppliers reducing investment. However, companies are doing their utmost to maintain R&D budgets despite these reductions.

The industry's efforts towards climate-neutral mobility may be undermined without public support and investment. Benjamin Krieger, Secretary General of the website, commented that a sufficient number of public charging points for EVs and refueling stations for hydrogen-powered vehicles is essential for a successful transition towards climate-neutral mobility in Europe.

The comment from Benjamin Krieger emphasizes the need for ambition at the member state level to match the efforts being made towards climate-neutral mobility. Without it, the green mobility transformation may be compromised.

The latest Pulse Check survey was conducted by McKinsey in February 2023. In February, 35% of suppliers expressed a positive outlook, compared to 70% reporting a negative outlook in September. This shift in sentiment suggests that the industry is beginning to adapt to the challenges it faces.

However, upcoming EU regulations could make plug-in hybrids (PHEV) and electric vehicles with range extenders (EREV) economically unviable just as suppliers begin their transformation—especially due to insufficient charging and fuel infrastructure. According to a joint press release by IG Metall and the German Association of the Automotive Industry (VDA) on September 11, 2025, these technologies are still needed for a stable transition.

In conclusion, the automotive supply industry is making progress towards climate-neutral mobility, but it requires public support and investment to ensure enabling conditions are in place. The rapid uptake of EVs will necessitate a public infrastructure of at least 3.4 million charging points by 2030, as indicated by McKinsey research. The industry must address these challenges to ensure a successful and sustainable transition to climate-neutral mobility.

Suppliers in the automotive industry voicing worries that insufficient infrastructure could hinder a smooth mobility transition success