BNP Paribas is hosting its 3rd annual Global Electric Vehicle & Mobility Conference in Hong Kong on 19-20 May 2025. This event comes at a crucial time for the global automotive industry.
Navigating challenges in the automotive industry
One of the world’s largest industries, the automotive sector, is currently navigating a complex landscape filled with challenges such as higher tariffs, a large-scale and costly transition to electrification, stricter emission regulations, increasing competition, and the rapid development of innovative products and services such as autonomous driving and flying cars.
Any one of these developments would be disruptive on its own. But combined, as we are seeing now, they are dramatically reshaping the structure of the industry, with its future set to be substantially different from today.
Impact of higher trade tariffs
Currently, the industry’s focus is on the impact of higher trade tariffs. These include not only the 25% incremental tariffs imposed by the Trump administration on US imports of autos but also the retaliatory measures taken by China and Canada. All of these actions will have significant financial implications for auto manufacturers, given the importance of international relationships across the industry’s supply chains.
Stuart Pearson, BNP Paribas’ Global Head of Automobile Equity Research, recently noted that while tariffs will hurt, the impact will vary among carmakers.
More importantly, these higher tariffs add to the industry’s struggles with electrification and competition across manufacturers. The transition to electric vehicles (EVs) has been costly for traditional brands, negating their lead in internal combustion engines (ICEs) and allowing new entrants, particularly from China, to become competitive globally.
However, James Kan, APAC Head of Industrials Equity Research at BNP Paribas, believes replicating domestic success globally may be challenging. Despite this, Stuart Pearson expects the Chinese brands to export price deflation as they expand beyond their home market. All of this will add to the already high stresses being experienced across the industry.
Nevertheless, there are positive developments to consider. Governments are adjusting policies to ease near-term pressures on emission standards and electrification. Additionally, new products and technologies, such as flying cars and autonomous driving, are creating new markets and supporting higher pricing. These advancements will enhance driver experiences, improve road efficiency, and reduce travel times, emissions and costs.
While each of these developments is significant on its own, their combined impact will make 2025 a pivotal year for the global auto industry.
Explore key topics and industry expertise
The 3rd Annual Global Electric Vehicle & Mobility Conference will explore these topics, featuring industry experts and over 50 companies worldwide. BNP Paribas will be hosting a series of panels discussing a wide range of topics including geopolitics, electrification pathways, the low altitude economy, autonomous driving technologies, charging infrastructure, and India’s EV future.
The auto industry plays a critical role within the global economy and is undergoing a period of profound change. BNP Paribas has a strong core competency in the industry, across all products, and this conference serves as a showcase of this capability.
Interested in learning more about the current state of the EV and mobility industry and where it is heading? Contact your BNP Paribas representative.