No Mobility Transition Without Manufacturing: Europe’s Transport Challenge

EFFRA’s Working Group on Transport 5 has developed a Policy Brief over the past year, that positions manufacturing as a decisive factor in the future of Europe’s mobility systems. Its core message is clear: maintaining leadership in transport industries will depend not only on innovation in vehicles and infrastructure, but on the strength, adaptability, and sustainability of Europe’s manufacturing base.

The European transport manufacturing sector is undergoing a profound transformation. Digitalisation, decarbonisation targets, and intensifying global competition are reshaping how transport systems are designed, produced, and deployed. Advanced technologies such as digital twins, artificial intelligence, and additive manufacturing are already redefining production processes, while ambitious policy frameworks, including the EU Clean Industrial Deal and Fit for 55, are accelerating the shift towards climate-neutral and circular mobility.

Despite this momentum, structural challenges remain. The integration of digital technologies across complex and distributed supply chains is uneven, and sustainable manufacturing practices often struggle to scale beyond pilot applications. At the same time, global competitors (particularly in Asia and the United States), are accelerating investment and industrial deployment, increasing pressure on Europe’s position. Preserving leadership in sectors such as aerospace, while strengthening competitiveness in automotive manufacturing, is becoming a strategic priority.

The Working Group highlights that manufacturing for transport is not only an industrial concern, but a societal one. It plays a central role in achieving climate objectives, ensuring accessible and equitable mobility, and fostering public trust in new transport solutions. Addressing these challenges requires a systemic approach that connects technological innovation with environmental performance, industrial strategy, and social impact.

Sustainability emerges as a critical dimension. The carbon footprint of transport systems extends far beyond vehicle operation, encompassing the production of components and the logistics of global supply chains. Reducing emissions therefore demands a holistic rethinking of manufacturing systems, improving energy efficiency, enabling more localised production, and integrating sustainable logistics solutions.

At the same time, circularity is gaining importance as both an environmental and strategic imperative. Europe’s dependence on critical raw materials underscores the need to retain value within industrial systems. Concepts such as reverse factories and de-manufacturing ecosystems offer promising pathways, but their deployment is constrained by product designs that do not support disassembly, limited remanufacturing infrastructure, and regulatory uncertainty, particularly for safety-critical components.

To address these challenges, the Policy Brief calls for a coordinated effort to modernise Europe’s transport manufacturing ecosystem. Key priorities for research and innovation include the development of innovative production methods and circular business models, the adoption of new materials and advanced structures, and the integration of circular design principles from the earliest stages of product development.

Digitalisation is identified as a fundamental enabler, supporting more efficient, flexible, and connected manufacturing systems. At the same time, the transition must remain human-centric, ensuring that automation enhances, rather than replaces, human capabilities, and that the workforce is equipped with the skills needed to operate in increasingly complex industrial environments.

Workforce development is therefore a central pillar of the transformation. Addressing skills gaps, supporting reskilling and upskilling, and attracting new talent will be essential to ensure that Europe can fully leverage its technological capabilities and sustain industrial leadership.

Ultimately, the Working Group frames transport manufacturing as a strategic battleground for Europe’s future. Strengthening this sector is critical not only for industrial competitiveness, but for achieving climate goals, ensuring mobility for all, and reinforcing Europe’s position in an increasingly contested global landscape.

This Policy Brief is intended for policymakers, industry leaders, research organisations, and stakeholders involved in shaping Europe’s transport and industrial strategies. Its message is grounded in urgency: without a strong, innovative, and sustainable manufacturing base, Europe risks falling behind in the global race for the future of mobility.

The full document can be downloaded here.