Who’s Winning the Auto Industry’s Green Race?

harshas2883
1 day ago
2 min read

It’s no longer just about horsepower. The race today is for something far more critical — zero emissions, renewable materials, and circular manufacturing. And in this race, there are no pit stops.

The automotive industry, long a symbol of fossil-fuel dominance, is now in the throes of a green revolution. And it’s not optional anymore.

With over 23% of global CO₂ emissions linked to the transport sector — and internal combustion engine (ICE) vehicles leading the charge — regulators, investors, and consumers are all pushing carmakers toward a future that is electric, sustainable, and circular by design.

But among legacy giants, disruptive startups, and greenwashing campaigns — who is truly leading the charge?

The Starting Line: What's Driving the Change?

The EU’s ban on new petrol and diesel cars begins in 2035.
China’s NEV mandate requires 40% of car sales to be New Energy Vehicles by 2030.
The U.S. Inflation Reduction Act allocates $369 billion for clean tech, including electric vehicles (EVs).
And consumer sentiment is shifting. A 2025 Deloitte survey found 68% of Gen Z buyers prefer electric or hybrid vehicles.

The auto industry has heard the signal. Some are sprinting. Others are stumbling.

Green Auto Industry Leaders: Who’s Driving Real Sustainability?

1. Tesla

Let’s be honest: no one’s surprised to see Tesla here. But beyond its EV-only lineup, Tesla is also making strides in battery recycling, solar integration, and a planned net-zero gigafactory in Mexico.

Emission Score: A-

EV Market Share (2025): 18.5%

2. BYD (Build Your Dreams)

China’s EV juggernaut has outpaced Tesla in units sold this year, with a fully electrified fleet, including buses and commercial vehicles. BYD also focuses on vertical integration — controlling everything from batteries to chips — to reduce lifecycle emissions.

Emission Score: A

EV Market Share (2025): 19.2%

3. BMW Group

BMW has committed to fully recyclable cars by 2040. The i Vision Circular prototype is a 100% recyclable concept that uses no paint, glue, or leather. Real innovation with real intent.

Emission Score: B+

EV Market Share (2025): 6.9%

4. Volvo

Volvo Cars plans to be climate neutral by 2040 and is already publishing lifecycle carbon footprints for each model — a rare and much-needed move for accountability.

Emission Score: A

EV Market Share (2025): 5.1%

5. Hyundai/Kia

The Korean duo is betting big on hydrogen, alongside EVs. Their IONIQ line has seen strong sales in Europe, and a recent pledge aims for 100% renewable-powered factories by 2035.

Emission Score: B

EV Market Share (2025): 7.3%

Falling Behind: Who’s Still Idling?

Some legacy automakers, despite big budgets and bold promises, have been accused of delaying EV rollouts, investing heavily in hybrids, or worse — using offsets to mask emissions.

A 2024 report by Transport & Environment accused several brands of "net-zero in name only," citing unclear roadmaps and a lack of credible battery sourcing policies.