Navigating the Shifting Landscape: EU Automakers Seek Urgent Relief Amidst Declining Electric Car Sales

In a concerning turn of events, the European automobile industry is facing a continuous trend of shrinking market share for battery electric cars within the EU. This worrying signal has prompted a united call from European auto manufacturers, represented by ACEA, for the EU institutions to swiftly implement urgent relief measures before the new CO2 targets for cars and vans come into effect in 2025.

Powering the Future: Automakers Committed to Decarbonization, but Obstacles Remain

Investing Billions in Electrification, but Systemic Challenges Persist

The European auto industry has demonstrated its commitment to the Paris Agreement and the EU's 2050 transport decarbonization targets by investing billions in electrification to bring zero-emission vehicles to the market. However, the industry faces a daunting reality – the necessary elements for this systemic shift are not yet in place. Factors such as the rapid erosion of the EU's competitiveness, as confirmed in the Draghi report, have exacerbated the challenges.

Downward Trajectory in Electric Car Sales: A Worrying Trend

The latest EU car registration data released by ACEA paints a concerning picture, with the electric car market now on a continual downward trajectory. This trend is not limited to a few brands but is affecting the industry as a whole, including ACEA members and beyond.

Obstacles to Reaching CO2 Emission Reduction Targets

The industry is facing the prospect of either multi-billion-euro fines, which could otherwise be invested in the zero-emission transition, or unnecessary production cuts, job losses, and a weakened European supply and value chain at a time when it faces fierce competition from other automaking regions. The current rules do not adequately account for the profound shift in the geopolitical and economic climate, further eroding the competitiveness of the sector.

Urgent Action Needed to Reverse the Downward Trend

The industry cannot afford to wait for the scheduled review of the CO2 regulations in 2026 and 2027. They are calling for urgent and meaningful action now to reverse the downward trend, restore EU industry competitiveness, and reduce strategic vulnerabilities. For heavy-duty vehicles, an earlier review will also be critical to ensure the necessary infrastructure for trucks and buses is scaled up in time.

Securing Europe's Industrial Future: A Comprehensive Approach

The European auto manufacturers, united in ACEA, are ready to discuss a package of short-term relief for the 2025 CO2 targets for cars and vans, as well as a fast-track, comprehensive, and robust review of the CO2 Regulations for both cars and trucks, plus targeted secondary legislation. This holistic approach aims to get the zero-emission transition firmly on track and secure Europe's industrial future.