1. Litigation on the rise: ADAS and autonomous tech face growing product liability and consumer lawsuits.

2. Data privacy tightening: Stricter laws require more substantial compliance and transparency in vehicle data use.

3. Battery rules expanding: New regulations on sourcing, safety, and disposal demand industry focus.

As the initial novelty of electric and autonomous vehicles fades, the spotlight has shifted to the increasingly complex legal and regulatory environment that governs them. Litigation risks surrounding autonomous and advanced driver-assistance systems (ADAS) technologies took center stage in our survey. Sixty-three percent of respondents identified lawsuits as a top concern (up slightly from 62% in 2024). These cases, ranging from product liability to consumer expectation disputes, highlight the need for companies across the industry to prepare for increased legal scrutiny.

Data privacy also remains a critical issue for connected vehicles. Fifty-six percent of survey respondents cited this as a significant challenge. The growing reliance on connectivity raises vital questions about how automotive companies collect, store, and safeguard sensitive consumer data while navigating an increasingly complex patchwork of privacy regulations.

In the EV space, supply chain challenges and infrastructure growth dominate the conversation. With 42% of respondents citing issues securing EV battery materials and 31% pointing to the expansion of charging infrastructure and right-to-charge laws, the focus is shifting toward the practical realities of scaling EV production and adoption. Environmental concerns, particularly around battery safety and disposal (29%), further complicate the regulatory landscape, demanding proactive compliance measures from manufacturers.

The now-ubiquity of connected and autonomous vehicles has elevated data privacy to a critical concern for the automotive industry. With 56% of respondents citing it as a leading issue, automotive industry players must confront a growing web of regulatory requirements while also addressing consumer expectations for transparency and trust.

The vast amounts of data generated by these vehicles—spanning driving behaviors, geolocation, and consumer preferences—put companies under the lens of both privacy regulators and consumer advocates. Legislation like GDPR, CCPA, and state-specific privacy mandates demand robust data governance systems that include encryption, secure storage, and precise consumer consent mechanisms.