Automotive industry adaptation in the age of EVs. By Rohit Auluck
The automotive sector is grappling with increasing pressures. Soaring energy costs, economic volatility from US tariffs and fierce competition from China’s burgeoning electric vehicle (EV) market, have all contributed to the industry’s slowdown in recent months.
These headwinds reflect the challenges revealed in Autodesk’s State of Design and Make report, where nearly two-thirds (61 percent) of automotive companies report feeling more uncertain than three years ago. Their top three challenges are cost control and management (34 percent), technological advancements, including AI (32 percent), and environmental sustainability (29 percent).
Yet, despite this uncertainty, business leaders in the industry are still feeling bullish in some areas as they identify opportunities for disruption. We’re seeing the industry redefining itself not only to meet consumer demand and regulatory requirements, but also to build a more sustainable future for mobility. In fact, 61 percent of leaders plan to increase overall future investments, while 75 percent believe that sustainability measures can generate more than five percent of their annual revenue.
As manufacturers strive to compete with EV giants abroad, new design and make possibilities are emerging. Here’s how the industry is adapting and where the next wave of innovation is likely to arise.
The market shift towards electrification
EVs are projected to make up 50 percent of vehicle production by 2030, as consumer expectations for seamless digital integration and sustainability across the vehicle lifecycle increases. While this is positive news for the growing market segment, it increases competition in the industry at large and forces manufacturers to rethink their processes.
At the same time, electrification and autonomy are reshaping how vehicles are conceived and built. For many organizations, this shift is a catalyst for modernizing development workflows, embracing advanced design tools, and accelerating the rollout of electrified and autonomous vehicles.
However, the pace and nature of this transition differ across regions. Emerging markets have the advantage of building EV-ready systems from the ground up, enabling swift adoption and more streamlined systems. Meanwhile, more mature markets face slower and more complex retrofitting which is often costlier and more technically demanding.
How EVs are enabling new vehicle design possibilities
The shift toward electrification and autonomous vehicles is influencing the way vehicles and transportation infrastructure are being designed. With fewer packaging constraints, EVs are enabling new vehicle design possibilities, while also increasing the need for aerodynamic and efficiency-focused collaboration across design and engineering teams.
Fundamental design principles also being reconsidered when it comes to autonomous vehicles. Manufacturers are forced to shift design considerations from driver-focused layouts to passenger experience and shared mobility concepts, prompting new thinking in form and function.
Regulatory pressures, including stringent CO₂ fleet limits and fluctuating incentives, further push manufacturers to rethink powertrain strategies and product portfolios. Advances in AI, data use, and software-driven vehicle development are enabling driving efficiency and supporting a broader industry transformation toward more sustainable mobility solutions.
Why speed to market is a decisive competitive factor
With so much transformation happening in the industry, speed to market is crucial. OEMs must accelerate the journey from initial sketch to production to stay competitive against new entrants. Rising competition and differing regional maturity is disrupting traditional development cycles, so manufacturers must be ready to adapt their processes.
This isn’t just about manufacturing a vehicle and the time it takes to get it out the door. It’s about the entire journey from design sketch, through engineering, production and finally distribution. With the arrival of new brands and models attracting consumers through advanced technology and competitive pricing, OEMs must expedite time-to-market to retain customer loyalty.
How automotive manufacturers are adapting
As material and labor inflation continue to squeeze margins and erode profitability, cost reduction is a top priority across. While EV transitions reshape cost dynamics by reducing propulsion components, savings are often offset by the higher cost of electrical components and systems, as well as battery technology.
We’re seeing manufacturers are already moving on major cost-reduction initiatives that span the entire product lifecycle – from initial concept development, supply chain optimization and factory floor process improvements. For example, EV manufacturer Rivian faced the challenge of reducing the cost and resource intensity during early vehicle development. By adopting digital prototyping, it has been able to test and refine concepts virtually. This has made the digitalized design process more efficient, more cost-effective, and reduced the environmental footprint associated with building physical prototypes. The company eliminated more than 32 tons of clay waste and achieved savings of over $1m across the project lifecycle.
On the manufacturing side, companies like Porsche face complexity coordinating multiple disciplines during factory projects. Porsche built a new factory for its fully electric Taycan, which used advanced digital planning to create a zero-impact facility that maximizes efficiency and flexibility with driverless transport systems and flexible production lines. Designed for sustainability, the high-tech factory uses renewable energy, biogas-powered heat and power plants, and is integrated with Autodesk solutions for meticulous planning and collision checking, making it one of the most complex and environmentally friendly manufacturing sites.
The road ahead for EV manufacturers
Automotive production is highly complex, and manufacturers are operating in a rapidly changing landscape where EV production is driving the fight to stay competitive. Some cities are already seeing zones where EVs are mandated, signaling how policy and planning are starting to shape a more sustainable transport ecosystem.
But shifting mix between powertrains or models can be difficult and costly for automotive manufacturers. It is the manufacturers using digital tools to simulate production setups before physical changes, that are better positioned to make informed decisions to drive production forward. These innovative transformations enable manufacturers to overcome challenges, seize opportunities, and lead the future of sustainable mobility.
Rohit Auluck
Rohit Auluck is Industry Strategy Manager for Mobility and Transportation at Autodesk. The world’s designers, engineers, builders, and creators trust Autodesk to help them design and make anything. Autodesk’s Design and Make Platform unlocks the power of data to accelerate insights and automate processes, empowering customers with the technology to create the world around us and deliver better outcomes for their business and the planet.
