The European Union (EU) wants to alter the rules of the automobile industest with a new strategy focutilized on local car production in Europe, in an attempt to reduce depfinishence on China and protect sectors considered strategic, such as the automotive industest, at a time of growing geopolitical and industrial pressure.
According to the portal, the measure comes within the scope of the “Made in Europe” strategy, part of the so-called Industrial Accelerator Act, and foresees that cars produced in Europe will incorporate a minimum percentage of materials and components of local origin.
In practice, Brussels wants to reduce European industest’s exposure to external supply chains, at a time when concerns about Asia’s depfinishence on critical areas such as batteries, semiconductors, processors and other electronic components continue to gain weight.
The topic gains even more relevance in an unstable international context, marked by tensions that could affect strategic routes for global supply. Among them is the Strait of Hormuz, a sensitive passage for raw materials and resources essential to the global economy.
New requirement for vehicles produced in Europe
According to the new framework, new vehicles manufactured in Europe will have to meet specific criteria to benefit from public tfinishers or certain incentive programs.
The rules mainly apply to electric vehicles, plug-in hybrids and hydrogen models. One of the first requirements is that the car be assembled in the territory of the Member States of the European Union, with the United Kingdom and Japan also included in this table cited by the sector.
Furthermore, a minimum quota of 70% of parts produced in the European Union will be required, calculated based on the ex-factory value of the parts. The battery is excluded from this account, as it meets its own criteria.
The European Commission’s intention is clear: to strengthen domestic industrial capacity and ensure that a greater part of the value generated in the automotive sector remains in Europe.
The objective is to reinforce the weight of industest in GDP
Brussels wants industrial production to represent 20% of the EU’s Gross Domestic Product by 2035, up from the current 14%. The goal also involves creating around 150,000 new jobs.
Still, the alter is not without doubts. The imposition of more local content could translate into higher production costs, with repercussions on the final price of cars and the competitiveness of European industest in relation to other markets.
At the same time, external depfinishence continues to be especially visible in the electric vehicle segment. China dominates more than 70% of the world’s production of batteries for this type of automobile, also maintaining a strong influence on other stages of the industrial chain.
Portugal is also at the center of this transformation
Portugal follows this debate with special attention, not least becautilize it has been consolidating its weight in the European automotive industest. In 2025, the countest will consolidate itself as the ninth largest car producer in Europe.
In the components sector, the national presence is even more significant. According to data cited in the article, 98% of cars manufactured in Europe include at least one component produced in Portugal.
This segment represents around 5.2% of Portuguese GDP and generates approximately 14.7 billion euros per year, displaying the strategic relevance of the components industest for the national economy.
The mold sector also continues to stand out. Portugal is considered the third largest European producer and the eighth worldwide, in an industrial sector that is heavily exporting and has great technological importance.
According to the figures cited, the mold industest earned R$788 million in 2024, with 80% of production destined for foreign markets.
A strategic sector in times of global pressure
The European automotive industest is thus entering a decisive phase. Between new internal rules, international instability and strong global competition, the sector is forced to rebelieve its industrial base and the way it guarantees productive autonomy.
It is no longer just about car manufacturing or the technological transition to electric mobility. What is also at stake is Europe’s ability to protect jobs, investment and industrial knowledge in one of its most important sectors.
In the EU as a whole, the car industest is responsible for around 13 million jobs, including thousands in Portugal, which assists explain why this shift is being seen as a strategic decision for the continent’s economic future.
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