Aggressive emission and carbon neutrality targets set by regulators worldwide has paved the way for a faster transition from traditional automakers to next-gen electric vehicle (EV) manufacturers. Therefore, automakers are committing operational investments of nearly $600bn to secure their position in the future automotive market, says GlobalData.

The investments announced focus on the development of production facilities, technology, EV batteries, new product and securing future raw material supply (primarily semiconductors and battery materials). Autonomous vehicle development also remains a closely linked area to the investments.

VW Group stays on the top of the list with $100.5bn investment through 2030. Its ambition to surpass Tesla is no secret, and the company wants four out of every 10 cars it sells to be a BEV by 2030.

VW is estimated to have the highest cumulative contribution to EV growth over the next decade when mapped against the investment announced, according to Bakar Sadik Agwan, senior automotive consulting analyst at GlobalData.

“Nevertheless, the investment announced remain important for automakers from a perspective of sustaining the ongoing disruptions in the automotive industry. Automakers need to be tech-efficient to combat technology rivals invading the auto industry”, he said