Into a Brighter Future: Laws Currently Changing the Automotive Industry


The automotive industry is one of the largest globally, and it’s expected to grow even more prominent during the coming years. However, many things are affecting its growth. Some of it comes in the form of laws being implemented currently by the US government.

The automotive industry is worth $2 trillion and is one of the fastest-growing sectors worldwide. As various technologies continue to improve, the automotive industry is growing alongside them. However, despite being such a powerhouse of an industry, it is one of the most volatile in the world.

Disruption is one of the biggest problems that’s affecting the growth of the automotive industry. One way the industry is being disrupted is through the laws being implemented today. One of the most crucial laws being one of the most recent is the current implementation of an executive order made by the newly appointed Biden Administration.

Electric Vehicles of the Future

Climate change is a severe problem and one that will destroy us all if we don’t take the necessary precautions. The recently appointed Biden administration acknowledges this.

In an executive order, President Biden is pushing to make half of the automotive sales be electric cars by 2030. If we look at it by today’s standards, that’s about one trillion dollars going directly to electric vehicles. That’s a decent chunk of the industry’s revenue. However, the law seems to run more profound than it looks.

The administration expressed that buyers aren’t forced or mandated by the government to buy electric vehicles. Instead, the responsibility comes from the automotive manufacturers themselves. So what does this mean for the industry?

A Disruption on Production

The reality is that future car-owners don’t need to worry about the law. They will still have the opportunity to purchase the car of their dreams, whether it’s electrical or not. However, there is real pressure being applied to automotive companies because it’s up to them to reach the quota being given to them by the executive order.

Currently, some automotive companies are scrambling to get electric vehicles in the market, and there are some companies, such as Tesla, that are already profiting from the law. This causes a fundamental disruption in the US market, where the industry gets a decent chunk of its sales. So how are other industries adapting to this disruption?

Most companies are doing what they do best, and that’s through innovation. However, the reality about climate change isn’t going anytime soon, and they do have to address this problem sooner than later. Aside from electric vehicles, hydrogen vehicles are also being sold in the market. Other companies that don’t have alternatives are making their own.

This disruption certainly affects many companies, but it will make the world a better place.


Cyber-security in the market is growing alongside the automotive sector, and for a good reason: almost all modern cars rely on smart technology to function. But the diverse law that surrounds cyber-security makes it a problem.

No one has true control of the internet, and implementing a couple of laws isn’t going to change that. The cyber-security industry is doing its best because the sector knows that it will be one of the main reasons why vehicles get into accidents in the future. Experts believe that car accident lawyers will need to read new laws related to cyber-security in the future. This also goes alongside judges and juries of the court.

Furthermore, experts believe that cyber-security laws are needed soon if we want to keep future customers safe from all sorts of malware attacks, which can be lethal when they’re out on the road.

The Way Tariffs and Laws in the Commodities Market Changes

Vehicles are made from various parts, and unfortunately, these parts aren’t made in one singular factory, it’s found worldwide. Tiered production was made famous many years ago because it was a cheap alternative to production. But because of the ever-changing implementation of tariff laws, the automotive industry is seeing some severe increase in expenses.

Take the US and China trade war from last year as an example. This trade war has easily pumped up the prices of microchips and other vehicle parts by a decent chunk this year, and the industry is suffering from it. To alleviate this increase in expenses, vehicles produced today either use cheaper materials to sell at a lower price or use expensive materials but sell for a high price. There is no longer a middle-ground because of this.

The industry currently has no known way to handle how this predicament. As a result, most companies are holding on to see what future laws can help them in the future.

Laws play a big role in economics. Some laws can instantly disrupt an industry overnight. This is what the automotive industry is experiencing right now. But with the right innovation and mindset, it should survive and continue to grow in the future.

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