Environmental issues have started to show their impact on industries globally. Consumers are increasingly opting for more environment-friendly vehicles with lower carbon footprint. Governments have imposed stringent environmental regulations on original equipment manufacturers (OEMs) for emissions control and fuel economy. In the middle of these changes, the global automotive industry is undergoing a fundamental transformation to meet environmental requirements and adapt to new consumer preferences. Government regulations, however, vary significantly from one region to another, adding complexity to the mix of vehicles offered by OEMs. As a result, global OEMs and suppliers are being challenged to constantly update their product portfolios to meet numerous regional regulatory requirements, which are expected to add significantly to their manufacturing costs.
This white paper examines current and proposed environmental regulations as well as incentives affecting the global automotive industry in Europe, North and Latin America, and Asia. The paper highlights the differences in regulatory compliance for these regions. The publication also offers valuable insights on the strategies OEMs and suppliers have adopted to meet the stringent regulatory requirements and the impact of these regulations on the outlook for M&A and future trends and developments.