Source: European Parliament
As stated in the impact assessment supporting the Commission’s proposal for amending the CO2 emission standards for cars and vans[1], one of the objectives was to stimulate innovation in zero-emission technologies to tackle the risk of the EU automotive value chain losing its technological leadership.
The analysis pointed at the developments in the Chinese automotive sector and its competitive advantage in electric vehicle battery production.
The trend towards zero-emission vehicles creates new business opportunities for automotive manufacturers, especially those taking an innovative approach, promoting and selling electric vehicles.
Clear regulatory signals facilitate making appropriate investment decisions, to the benefit of EU industry’s competitiveness. The revised CO2 emission targets[2] provide a long-term regulatory signal.
Delaying regulatory action would increase the uncertainty for the investments and the risk of the EU automotive industry losing its technological leadership and lose market share in the EU.
The countervailing duties on battery electric vehicles (BEVs) from China are the result of a thorough anti-subsidy investigation, conducted according to the EU and World Trade Organisation rules.
The Commission concluded that the BEV value chain in China benefits from unfair subsidisation, which is causing a threat of injury to EU BEV producers. The investigation also examined the likely impact of these measures on the EU producers, importers, users and suppliers of BEVs.
Finally, with regard to the future of the car industry in Europe, the Commission released an industrial action plan for the automotive sector on 5 March 2025[3] after the President of the Commission conducted a Strategic Dialogue on this specific issue.
- [1] Impact assessment accompanying Proposal for a regulation of the European Parliament and of the Council amending Regulation (EU) 2019/631 as regards strengthening the CO2 emission performance standards for new passenger cars and new light commercial vehicles in line with the Union’s increased climate ambition.
- [2] http://data.europa.eu/eli/reg/2023/851/oj
- [3] https://commission.europa.eu/topics/business-and-industry/boosting-european-car-sector_en