Only with the right framework will Automotive Action Plan unleash thriving industry delivering zero-emissions

Auto makers and suppliers recognise the collective efforts of the Strategic Dialogue, but no time to waste to safeguard competitiveness.

European vehicle manufacturers and automotive suppliers invested hundreds of billions of euros and are committed to making zero-emission mobility a successful business model. The urgency to act is there: the market for zero-emission vehicles is not picking up fast enough. The transition can only work if coupled with immediate ambitious actions to boost infrastructure, demand incentives and measures to reduce manufacturing costs.

Today’s discussion on a more pragmatic approach for decarbonisation based on the principle of technology neutrality recognises the need for a reality check for this transition to succeed. Proposed penalty relief for 2025 targets for cars and vans is a first step in the right direction, and more support for autonomous vehicles and European battery supply chain are also positive signs. However, the truck and bus industry’s unique role and challenges still need appropriate recognition.

Ola Källenius, President of the European Automobile Manufacturers’ Association (ACEA) and CEO of Mercedes-Benz: “This Strategic Dialogue comes at precisely the right moment. The transformation of our automotive industry is in full swing, and now we must define a framework that ensures the EU’s competitiveness in this critical sector. The transition to zero emission mobility and a thriving EU automotive industry must progress together—this is non-negotiable. We appreciate the focus on accelerating autonomous driving deployment and the proposed CO2 relief measures for 2025 for passenger cars and vans. But let me be clear about our primary concern: how do we chart the course to 2035 with the necessary flexibility and pragmatism to make this transition work? This is the fundamental question we would like to address with Commission President during the next Strategic Dialogue meeting.”

Matthias Zink, President of the European Association of Automotive Suppliers (CLEPA): “Suppliers, alongside vehicle manufacturers, are driving the decarbonisation of the automotive sector—and we will make it happen. But, greater flexibility is essential to ensure that the transition is both ambitious and realistically achievable,” says Zink. “A crucial question remains unanswered: How can we establish a technology-open regulatory framework that enables solutions like PHEVs and range extenders beyond 2035? This must be a key element of the Automotive Action Plan and a fundamental part of the CO2 regulation’s revision. More than 3,000 companies—many of them small and medium-sized enterprises—depend on this flexibility to thrive in Europe.”

Christian Levin, Chairperson of the ACEA Commercial Vehicle Board and CEO of Scania: “We have less than five years left to go from 2% to 35% market share with almost none of the necessary enabling conditions in place today. It is essential that the upcoming Action Plan for the Automotive Industry includes an accelerated review of CO2 standards for heavy-duty vehicles to 2025 based on an urgent assessment of enabling conditions. Trucks and buses are the backbone of Europe’s economy, essential to daily life for millions of citizens and businesses. But to accelerate their transition to climate neutrality, much greater emphasis must be given to deploying critical infrastructure, ensuring cost parity, and boosting demand for zero-emission trucks and buses.”

Vehicle manufacturers and automotive suppliers reiterated the joint call for the following priority issues to be addressed as a matter of priority:

1. Accelerate the reviews of the CO2 Regulations for cars and vans and heavy-duty vehicles to 2025, including an urgent assessment of the sector’s enabling conditions.
2. Ambitious measures to tackle insufficient enabling conditions that slow down transformation: The industry needs to see increased AFIR targets, purchase and fiscal incentives to boost mass adoption of zero-emission vehicles and specific set of measures to stimulate demand for the heavy-duty vehicles segment tackling the total cost of ownership.
3. Maintain technology openness: In the face of global competition and dependency on battery technology controlled by other regions, maintaining flexibility for all technologies, including PHEVs, range extenders, hydrogen and other climate-neutral solutions, is crucial for Europe’s resilience and strategic autonomy.
4. Trade and partnerships with other regions: Ensure a balanced trade policy that levels the playing field with global competitors that both safeguards European added value and maintains the benefits of a globally connected supply chain. Secure access to funding for the automotive supply chain to enable global competitiveness in critical automotive technologies.

The auto industry acknowledges the collective efforts of the European Commission President Ursula von der Leyen and Commissioners Tzitzikostas, Séjourné, Minzatu, Virkkunen and Hoekstra for engaging with our sector at this critical juncture. We look forward to working with them to deliver on the Action Plan.