Businesses and the Mobility Transition

The mobility industry is under enormous pressure: rising costs, crumbling markets and an unclear future are putting massive pressure on the sector. Even flagship companies such as ONOmotion, manufacturer of e-cargobikes, have been forced to initiate insolvency proceedings. Industry giants such as Volkswagen have also announced plans to cut 35,000 jobs by 2030 as part of a cost-cutting programme - a decision that will not only hit the automotive industry hard, but also suppliers such as Bosch and Continental. Political uncertainty is doing the rest: with the current survey results, there is growing concern that the climate policy measures of recent years could not only be halted, but even reversed.

Given these developments, the pressing question is: how can businesses not only survive the mobility transition but actively shape it? Which political and economic levers need to be moved to drive this transformation forward?

The mobility transition rests on politically unstable foundations. While regulations like the “Clean Vehicle Directive” require the public sector to prioritize zero-emission vehicles in procurement, many other challenges remain unresolved. For example, while the “European Data Act” aims to ease third-party access to vehicle data, progress on infrastructure expansion and clear policy guidelines is still lacking.

Claudia Kemfert, head of the Energy, Transport, and Environment department at the German Institute for Economic Research, outlines key measures to help: “Rail transport must be strengthened, and investments in rail infrastructure should be tripled at a minimum. Public transport, cycling, and walking should also be bolstered.” She also touches on the Deutschlandticket: “The Deutschlandticket should not only be retained but made even more affordable.”

Additionally, Kemfert calls for stricter EU-level regulations: “EU emissions limits for new vehicles must not be weakened; they should be further tightened.” Other overdue measures include increasing diesel taxes and accelerating the expansion of charging infrastructure.

Mobility expert Augustin Friedel, Senior Manager at MHP, also underscores the urgency of rethinking the mobility transition. Currently, shared mobility providers are particularly burdened by regulatory hurdles. “The requirements are highly heterogeneous, varying from one municipality to another. This creates enormous effort for providers, as they must first evaluate local requirements before ensuring compliance.” A standardization of regulations would be a crucial step forward.

Friedel also criticizes the lack of long-term planning: “Another issue is long-term planning, which is often hampered by the short duration of operating permits and subsidy commitments. Shared mobility providers invest in various markets, and these investments need to pay off in the long term.”

But the responsibility does not lie with politics alone. Friedel believes the private sector must contribute more to the transition: “There’s a lack of strong players who can accelerate the growth of shared mobility and the shift to e-mobility. The automotive industry has historically fulfilled this role in Europe. However, additional financially strong and innovative players are needed to secure financing, technical progress, and implementation.” He cites the U.S. and China as examples, where big tech companies, venture capital funds, private equity, and pension funds are driving mobility transformation.

For businesses, the key to the mobility transition lies in strategically and deliberately driving innovation. Friedel explains: “Fundamentally, companies should set the course for innovation and new business models when they are well-positioned in the market.” In economically challenging times, it is more difficult to allocate the necessary resources, but that is precisely when the foundation must be laid to foster innovation while safeguarding the core business. This involves “culture, organizational structures, commitment, and accountability.”

A critical success factor is developing new business models that are data-driven and customer-focused. Friedel believes that many companies should invest more in this area to secure long-term success.

Kemfert emphasizes that stable political frameworks are essential for building trust in the transformation: “Trust can only be built through stable political frameworks and reliability.” Backward-looking debates about so-called technological openness, on the other hand, are harmful. Regarding the necessary infrastructure, she explains: “The technology that ensures climate goals are met in the long term should be promoted. Building multiple infrastructures is costly and inefficient.”

A holistic understanding of mobility is also central to her perspective: “There should be close integration of public transport and ride-sharing concepts, even with bicycles.” Such integrated approaches could not only increase the attractiveness of sustainable mobility but also support the achievement of climate goals.