Cybersecurity standards and regulations define the practices organisations must follow to mitigate cyber risks and strengthen their security posture. The European Union’s NIS2 Directive, which mandates enhanced security requirements, exemplifies this regulatory approach. This study examines the regulatory, governance, cybersecurity, and compliance challenges posed by NIS2 on the Swedish automotive industry. By integrating NIS2 with other regulatory frameworks, organisations can optimise their compliance strategies for long-term stability. Through qualitative research, including interview, questionnaires, and document analysis with industry experts, this study highlights the growing complexity in compliance, along with potential financial burdens, but also uncovers opportunities for improved cybersecurity resilience. Key findings emphasize the need for proactive adaptation of cybersecurity practices to navigate the evolving EU regulatory landscape. Although this study focuses on the Swedish automotive sector, future research should explore the broader implications of NIS2 across different European industries and countries.