Bridging the EV Compliance Gap: Environmental Regulation and New Opportunities in Automotive Inspection

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Authors: Xiugen Wang, Basheer Al-haimi, Farah Akmar Anor Salim, Hong Gong
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Abstract

The global automotive industry is currently undergoing a significant transformation driven by the dual imperatives of climate change mitigation and digital transformation. However, a critical "compliance gap" has emerged between the rapid adoption of Electric Vehicles (EVs) and the capabilities of traditional vehicle inspection infrastructure, which remains predominantly designed for Internal Combustion Engine (ICE) emissions; simultaneously, fragmented global standards and information asymmetries in battery valuation create distinct International Opportunity Recognition pathways that have received limited scholarly attention. This paper conducts a comprehensive literature review from 2015 to 2025 to analyze how environmental regulations act as a primary driver for International Opportunity Recognition (IOR) in the automotive inspection market. The study traces the industry's evolution through three distinct phases: the Compliance-Driven Era, the Technological Adaptation Era, and the current Sustainability & EV Ecosystem Era. The findings suggest that tightening policies, such as the EU Green Deal and the implementation of the Battery Passport, should not be viewed merely as administrative burdens but as catalysts for business model innovation. Specifically, the integration of Digital Twins and Artificial Intelligence (AI) enables a shift from static Periodic Technical Inspection (PTI) to Predictive PTI (P-PTI) and asset valuation services. The paper concludes that inspection stations are poised to evolve into sustainability hubs, playing a pivotal role in the circular economy and the global trade of used EVs, and that future research should employ International Opportunity Recognition frameworks to systematically examine how service infrastructure providers identify and operationalize opportunities driven by environmental regulatory pressures.

Fields of Study & Subjects

Electric Vehicles and Infrastructure Environmental Sustainability in Business Governance Compliance and Sustainability

Publication details

Journal / source
International Journal of Academic Research in Business and Social Sciences
Volume
16
Issue
1
Publication date
26 January 2026
Language
EN