The study aimed to identify policy designs for successful transformations. We focused on the measures that are especially effective in facilitating the transformation’s goal along with uncovering the general transformation pattern.
In our research, we split our analysis along three dimensions. First, we looked for overarching trends that can be found in countries irrespective of country-specific market conditions. Second, we took a closer look at regional and intra-regional trends. Finally, we clustered the countries along country-specific factors, like their urbanization rate, income levels, or how far along they are in their transformation. On a high level, we can say a few things.
KEY FINDINGS
01
Overarching Trends:
Most countries use a mixed-instruments approach to push the transformation.
Incentives are more often used than disincentives (130 vs 21).
Well-defined and -targeted regulations support transformation progress more effectively than vaguely formulated regulations.
Countries with solid, quantifiable targets outperform those without such goals.
Countries targeting technology clusters with regulations perform better in the transformation.
Countries are decreasing spending on individual new-vehicle purchase incentives while broadening their reach to a wider segment of society.
KEY FINDINGS
02
Regional Trends:
Interregional trends are difficult to find due to variances in policy intervention, but some countries have taken regional leadership roles. Europe leads the overall automotive market transformation, however, with a lot of intra-regional variances. The Americas fell behind in the automotive market transformation, which can often be traced back to conservative political majorities. Asia’s socio-economic conditions will facilitate a quick market transformation once regulatory bodies intervene more actively. MENA/GCC’s high purchasing power and high degrees of centralization will speed up the market transformation once protective measures are alleviated. African countries have introduced a diverse set of regulations and policies but need to set appropriate incentives to facilitate a faster transformation.
KEY FINDINGS
03
Cluster Trends
Income Level:
Countries can be clustered by level of income, which impacts the effectiveness of certain policies.
The lower the income level, the more regulations with economic motives are implemented.
The higher the income, the more R&D incentives and purchase subsidies are implemented.
KEY FINDINGS
04
Transformation Stages:
Countries behave differently depending on the stage of transformation they are in. Different policies are more valuable in certain stages of the transformation.
Innovator stage: Frameworks and tax incentives
Early adopter stage: Infrastructure creation along technology clusters
Early majority stage: Infrastructure creation & adjustment of previous frameworks for the wider society.
Laggards stage: Other financial instruments & adjust previous frameworks to reach even the laggards.
KEY FINDINGS
05
Urbanization Rate:
The urbanization rate influences the types of policies a country adopts to drive change, though a higher urbanization rate does not necessarily equate to faster infrastructure building or faster market transformation.
