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One of the top challenges faced in the automotive industry includes the unavailability of charging stations for electric vehicles. Electric cars in this sector have higher demand. The global sales record of electric vehicles in 2017 was 1 million (Rugraff, 2015). However, the critical limitation of the inadequate number of charging stations in the United States. It affects the profitability of the automotive industry dealing with electric vehicles. It is because customers cannot plunge into the new electric cars without reliable charges. For example, Tesla Inc. Company has seven more times gas stations compared to the charging stations. Another challenge faced by companies in the automotive sector is regulations (Oakland, 2014). The market regularly experiences crippling tariffs based on government rules. Also, there are intense regulations and pressure on pollution, which lead to multiple court petitions that adversely affect the funding.

 

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