The automotive industry is grappling with several significant challenges, from supply chain disruptions to the transition toward electrification. A global semiconductor shortage, rising raw material costs, and logistical bottlenecks have disrupted production and increased costs. At the same time, the shift to electric vehicles (EVs) requires substantial investments in R&D, battery supply chains, and charging infrastructure, with automakers facing difficulties balancing these costs with consumer adoption concerns and evolving regulatory pressures.

In addition to economic uncertainty and inflation, the industry must navigate stricter emissions regulations and sustainability demands from consumers, governments, and investors. Technological advancements like autonomous driving and software integration are progressing but face regulatory and safety hurdles. Meanwhile, shifting consumer preferences toward more connected and customizable vehicles, as well as the rise of shared mobility, are challenging traditional sales models. Automakers must also address workforce issues, including a shortage of skilled labor for EVs and high-tech manufacturing, while contending with labor disputes in some regions.