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The impact of the 2035 internal combustion engine ban on strategic adaptation and global competitiveness of German automotive companies
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The EU’s 2035 ban on new ICE vehicles forces Volkswagen, BMW, and Mercedes-Benz to shift R&D toward electrification, stabilize material supply, expand charging infrastructure, and meet evolving consumer expectations. Through interviews, policy analyses, and industry
reports, this study reveals policy-driven innovation, financial pressures, and competition shaping their strategies. Volkswagen scales platform efficiency, BMW maintains flexible propulsion, and Mercedes-Benz leverages premium branding and software-defined features. Despite financial and operational hurdles, opportunities emerge through battery innovations, circular economies, and partnerships with suppliers and energy providers. The ICE ban
catalyzes structural change, encouraging synergistic mandates, incentives, and engagement to secure sustainable, competitive leadership.
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Internal combustion engine ban Strategic adaptation R&D Regulatory influence Automotive market dynamics Comparative case study Germany and Norway