Research of the EU automotive industry into low-carbon-vehicles and the role of public intervention

The automotive sector is the largest industrial R&D investor in the EU. The present note assesses which parts of the sector's research efforts are dedicated towards the development of low-carbon vehicle technologies. The results indicate that relevant companies invest significant amounts in the development of more efficient conventional engine technologies and in electric vehicles, while fuel-cell vehicles have become of lower interest. The note suggests that the role of the public sector should focus on guiding research of this sector so as to bring it in line with the EU climate policy targets. To this end, setting long-term targets and regulation are considered an important tool together with the creation of market demand measures.