STUDY: The socio-economic impact of the transition to electric vehicles

The transition to electric vehicles will have a serious impact on the labor market, but also on the car market throughout Europe. Romania, in the absence of adaptation plans to the new environmental and industrial realities, will suffer more than its sister countries in the region. The expert in labor policies and in automotive industry, Ștefan Guga, author of the study THE TRANSITION TO ELECTRIC VEHICLES IN ROMANIA AND ITS SOCIOECONOMIC IMPACT, analyzes the automotive industry in Romania from the perspective of electrification and offers recommendations for policymakers.

According to the recently adopted European regulations, from 2035 all new light vehicles sold in the European Union will have to be purely electric. An accelerated transition from thermal to electric motors brings some major challenges for Romania.

From the very beginning, we are talking about a lack of transparency of the potential impact of this transition on the automotive industry and market, as well as on the Romanian economy and society more generally. Regarding the industry, we know that the production of cars and thermal engines is extremely important for Romania, being one of the activities with high added value and with a major contribution to exports.

The study provides some preliminary coordinates for estimating the impact of technological changes on the industry, but also recommends carrying out detailed analyzes together with the companies in the sector and to be undertaken by the authorities in order to develop an industrial policy aimed at the technological advance for the automotive industry in Romania. In the absence of such a policy, Romania will most likely lose even more ground not only to the western countries, but also to the other EU member countries in the east.

The impact on the car market will also be major, the problem of the high prices of electric vehicles and the lack of charging infrastructure being particularly acute in the case of Romania. The car fleet in Romania is increasingly polluting, and the reversal of this trend requires a strategic approach to reduce income gaps compared to Western countries and develop a public transport system that is as comprehensive, accessible and non-polluting as possible.

The study is available in Romanian and English.

Ștefan Guga

About the author

The author, Ștefan Guga, has a doctorate in sociology and anthropology at the Central European University in Budapest. Since 2016, he has been a consultant and specialist in the automotive industry for a European company that provides expertise in the interest of employees. Ștefan has extensive research and consulting experience in labor relations matters both in Romania and in Europe.