Most carmakers ‘not committed’ to electrification and just transition

New analysis of the world’s top 30 carmakers suggests that the majority is failing to invest in electrification business models and to engage with workers on the just transition. 

The assessment by the World Benchmarking Alliance reveals a lack of financial commitment in the climate transition, despite the availability of low-carbon technologies and a generally favourable regulatory environment.

Across the 30 automotive manufacturers – which together produce 80% of cars sold around the world – just 17% of revenue comes from low-carbon sales. Not a single one has committed to phasing out fossil fuels by 2035 and just six (Hyundai, Kia, Renault, Stellantis, General Motors and Ford) have pledged full electrification in specific markets. 

Only 23% of companies assessed have promised to increase future spending on low-carbon technology. As a result, only about 40% of vehicles are expected to be fully electric by 2035, far below the 100% needed to meet the 1.5°C climate target.

EV ambitions not backed by tangible actions

“Our research reveals a stark reality: most manufacturers  remain anchored to outdated business models that jeopardise their ability to meet these critical climate targets,” said Vicky Sins, World Benchmarking Alliance’s Decarbonisation and Energy Transformation Lead. 

“While there are promising signs of transition planning on paper, real progress hinges on tangible actions – such as phasing out fossil fuel vehicles, investing heavily in low-carbon technology, and securing sustainable supply chains. If the automotive industry is to accelerate meaningful progress toward a 1.5°C future, it must unconditionally commit to business models that scale electrification globally. Far too many companies are stuck in first gear,” she added.

The World Benchmarking Alliance’s findings confirm an earlier report by InfluenceMap, which showed that only three carmakers (Tesla, Mercedes-Benz and BMW) worldwide have 2030 EV ambitions aligned with the International Energy Agency’s 1.5ºC scenario.

In September, Volvo Cars scrapped a goal to sell 100% electric vehicles by 2030, citing market uncertainty and trade tariffs on EVs and batteries made in China. Meanwhile, General Motors has blamed its slow progress around vehicle emissions intensity on consumer demand for conventional cars.

Automotive workers at risk

In addition to not committing fully to the electric transition, car manufacturers are failing to re-skill their workforce for the production of EVs. Just five companies (Ford, Mercedes Benz, Renault, Stellantis and Suzuki) are committed to reskilling their existing workers, but none have a process in place to understand which actual skills are needed. 

According to the World Benchmarking Alliance, 1.3 million workers are currently employed by the 12 companies scoring zero on all fundamentals of re-and up-skilling their workforce for a just transition – putting them at risk of being left behind.

“The automotive sector must ensure that decarbonisation is not used as an excuse for an unjust  transition, and that it meets the needs of workers and other affected communities. These businesses need to do more to leverage social dialogue and engage with workers and affected stakeholders in order to achieve a just transition,” added Sins.