
The future of the automotive industry has never felt more uncertain. The end of globalization, ongoing tariffs, and rising competition from China have placed enormous pressure on automakers—particularly those in Europe.
In response, politicians have pushed the industry toward electrification as a way to stay competitive. But while the shift to electric vehicles has had some success, it has also created major challenges for OEMs, according to Formula 1 President and CEO Stefano Domenicali.
Since F1 depends heavily on manufacturer involvement, the FIA has worked to make the sport as appealing as possible for automakers. When drafting the latest regulations, Domenicali recalled a clear message from manufacturers in an interview with Motorsport.com:
'There was that clear indication from all the manufacturers that either we go in this direction [electrification], or we will not be interested in any sport.'
Much of the pressure driving electrification in Europe has come from regulators. However, Domenicali argued it is unrealistic to expect the global vehicle fleet—roughly 1.6 billion cars already on the road—to transition fully to electric power. In his view, this has placed European automakers in a difficult position that has also had ripple effects in Formula 1. He added:
'Therefore, you know, unfortunately, I said that with responsibility, certain politicians at the European level didn't understand that, creating problems for the European industry that is almost unrecoverable or difficult to recover.'
What's Next For F1?
One potential path forward for the internal combustion engine is the use of sustainable fuels. This could allow Formula 1 to rethink how much electrification is necessary, though that ultimately depends on the FIA's direction.
Domenicali noted that a future built around sustainable fuels, paired with highly efficient combustion engines, could help reduce car size and weight—allowing teams to “really push as much as you can.”
The sport has already introduced fully sustainable, drop-in fuels for the 2026 season.
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