Three major challenges in the shift to electric vehicles: Industrial organization, industrial policy, and a just transition

Abstract

AbstractThis article aims to comprehensively review current research on the transformation within the automotive industry, with a specific focus on electrification, which has driven structural shifts. The exploration of three key dimensions forms the crux of this review: the technical aspects of the transition to electric vehicles (EVs) and the diverse perspectives on EVs as an innovative icon; the array of policy interventions linked to the transition and their distinctive features; and the intricate interplay of discourse and practices integral to the concept of a just transition. Examining these dimensions reveals a disparity between aspirational ideals and current realities in the transformative phase. While the shift to EVs revolutionizes automobile design, the mirroring hypothesis of a concomitant revolution in production and organizational paradigms lacks empirical support. The socio‐ecological transition encounters conflicts between transformative advocates, arguing for robust interventionist policies to overhaul the prevailing social‐technical automotive regime, and status quo upholders favoring an ecological modernization of the regime. Furthermore, the article underscores nuanced tensions in negotiating a just transition amid diverse stakeholder positions.