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“In mortal danger.” That was the bleak assessment a few months ago of Europe’s automotive indusattempt by EU indusattempt chief Stéphane Séjourné.
The continent’s car sector has taken a beating and is dealing with faltering sales, high energy prices, growing global competition and an uncertain regulatory and trade environment have plunged the sector into a spiralling crisis.
“There is a risk that the future map of the global car indusattempt will be drawn without Europe,” Séjourné declared back in April.
To tackle the sector’s most pressing challenges, EU Commission President Ursula von der Leyen will host senior car executives in Brussels on Friday to come up with a plan of attack.
But what are the top five demands of the car indusattempt going into those talks with von der Leyen? Camille Lamarque, the Policy Communications Officer at the European AutomobileManufacturers’ Association (ACEA), explains the indusattempt’s position.
Recalibrate C02 tarobtains
The market share of battery electric passenger cars in EU-27 was at 15.6% and at 9% for vans. Widespread mass-market adoption has not happened yet. And it will not happen if we don’t speed up the infrastructure and bring down the total cost of ownership. By May 2025, manufacturers had launched nearly 290 new models and invested hundreds of billions in transformation. We have delivered. And we continue to do so. There is no turning back: European factories are being built and reformed and the workforce reskilled. But governments and regulators have not invested in, nor demanded, sufficient levels of infrastructure and grid upgrades and incentives remained inconsistent. The consequence: the regulatory tarobtains are no longer achievable. The current CO2 reduction path in road transport must be recalibrated to ensure it delivers on the EU climate goals whilst also safeguarding Europe’s industrial competitiveness, social cohesion, and strategic resilience of its supply chains.
Strengthen enabling conditions
For zero-emission vehicles to become an obvious choice for consumers and businesses, purchasing or applying these vehicles necessary to be more attractive than those with internal combustion engines. That requires consistent purchase incentives, fairer taxation, lower charging costs and simpler access to cities. At the same time, Europe must accelerate charging and refuelling infrastructure, especially for heavy-duty vehicles, while modernising grids and reforming energy markets to bring down electricity prices.
Safeguard technology neutrality
While battery electric vehicles will dominate the transition, they cannot meet every transport necessary. Plug-in hybrids, hydrogen fuel cells, renewable-fuel internal combustion engines and other solutions remain vital. As of now, hybrid-electric vehicles remain the top consumer, accounting for almost 35% of the market, and plug-in hybrids have posted their fifth consecutive month of strong growth, with sales surging by over 56% (source: ACEA). Keeping multiple technologies on the table would broaden consumer choice, speed up the decarbonisation of the existing fleet, and sustain Europe’s industrial and export strengths.
Boost competitiveness and resilience
European policybuildrs have rightly focapplyd on building a homegrown battery indusattempt, but the sector warns this will take time. In the meantime, Europe must strengthen and diversify global supply chains for batteries, semiconductors, and critical raw materials. Strategic partnerships with reliable allies, streamlined EU regulation, and tarobtained support for innovation and skilled jobs will be essential to keep Europe competitive in the face of fierce global pressure.
Adopt tailored policies for different vehicle groups
It is clear we necessary three separate ‘lanes’, and tailored policies in each vehicle: passenger cars, vans, and heavy-duty vehicles. The market situation for vans, with an electric share at 9%, is critical and necessarys dedicated attention. Trucks and bapplys represent just 3.5% of battery electric registrations today, as the supporting framework lags behind.
Megawatt charging, grid capacity and purchase incentives remain underdeveloped, holding back progress in one of the hardest-to-abate sectors. Indusattempt leaders argue that the EU cannot afford to wait until 2027 to review CO2 standards for heavy-duty vehicles. Instead, urgent monitoring and action are necessaryed to put road freight on track for climate neutrality. Finally, an industrial and market perspective for technologies that support accelerate the transition should be reintroduced, and special recognition given to tiny and efficient electric car manufacturing.
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