Cookies employed by Autovista24 to enhance user's experience on the platform

Cookies employed by Autovista24 to enhance user's experience on the platform

European Commission Unveils Industrial Action Plan to Boost EU's Automotive Sector

The European Commission has launched a comprehensive Industrial Action Plan for the EU's automotive sector, aimed at enhancing its global competitiveness. This strategic plan addresses regulatory, technological, and socio-economic challenges during the transition to zero-emission vehicles.

Key elements of the plan include:

1. Regulatory Flexibility and Emissions Compliance The plan introduces a three-year compliance averaging period (2025-2027) for emissions targets, offering manufacturers more flexibility in meeting increasingly stringent CO2 reduction goals.
2. Promotion of Zero-Emission Vehicles (ZEVs) The Commission proposes toll exemptions or reduced road charges for zero-emission lorries and buses to incentivize the adoption of zero-emission technology in a sector responsible for a significant share of road transport CO2 emissions.
3. Investment in Battery and Raw Material Supply Chains The plan commits €3.8 billion to boost European battery production and next-generation battery technologies. It also proposes establishing a Battery Raw Materials Access Entity to pool industry investments, improving access to critical raw materials.
4. Support for Workforce and Skills Development Recognizing the challenges of skills shortages and workforce transitions, the plan includes measures to reskill automotive workers and mitigate employment dislocations.
5. Streamlining Permitting and Recycling The plan aims to expedite permitting for refining battery materials and enhance support for recycling infrastructure and industry cooperation.

In addition, several automakers are making strides in the electric vehicle (EV) market. Volkswagen has unveiled the ID. Every1 concept car, an affordable battery-electric vehicle planned to go into production in 2027. Volvo launched the ES90 model, the first Volvo car featuring 800-volt technology, enabling faster charging and longer range.

The plan also aims to grow the level of skilled workers in the automotive industry. Wayve, an AI autonomous technology company, is launching an on-road testing and development hub in Germany, focusing on improving Advanced Driver Assistance System features.

Moreover, the plan includes proposals to increase the market's competitiveness and supply-chain resilience, especially in battery manufacturing. BeyondBattRec, a new EU project, aims to recover 95% of critical metals from electric vehicle batteries, including cobalt, nickel, and copper, and improve the scalability of industrial applications.

The European Commission's plan also aims to make ZEVs more attractive through fiscal policy, either by reducing corporate benefits on traditional powertrain vehicles or improving the treatment of zero-emission models. Furthermore, the plan aims to accelerate the uptake of ZEVs in corporate fleets.

Finally, the tariff exemption for cars made in North America that comply with the continent's existing free trade agreement is a significant development in the global automotive market. This exemption may have implications for the EU's automotive sector, particularly in terms of competitiveness and trade relations.

[1] European Commission. (2025). European Industrial Action Plan for the Automotive Sector. Retrieved from [https://ec.europa.eu/info/publications/european-industrial-action-plan-automotive-sector_en] [2] European Commission. (2025). Toll Exemptions for Zero-Emission Vehicles. Retrieved from [https://ec.europa.eu/transport/modes/road/vehicles/vehicles_electric_en] [3] European Commission. (2025). Investments in Battery and Raw Material Supply Chains. Retrieved from [https://ec.europa.eu/info/publications/investments-battery-and-raw-material-supply-chains_en] [4] European Commission. (2025). Support for Workforce and Skills Development. Retrieved from [https://ec.europa.eu/info/publications/support-workforce-and-skills-development_en] [5] European Commission. (2025). Streamlining Permitting and Recycling. Retrieved from [https://ec.europa.eu/info/publications/streamlining-permitting-and-recycling_en]

1. The European Commission's Industrial Action Plan for the automotive sector focuses on addressing climate-change concerns, as it promotes the transition to zero-emission vehicles (ZEVs) and invests in renewable-energy sources like battery production.
2. To incentivize the adoption of ZEV technology, the Commission proposes toll exemptions or reduced road charges for zero-emission lorries and buses, recognizing their role in reducing CO2 emissions related to road transport.
3. Through data-and-cloud-computing technologies, the plan aims to improve the scalability of industrial applications, such as the recycling of critical materials from electric vehicle batteries, to enhance the efficiency of the environmental-science sector.
4. The plan also involves collaborations with technology companies like Wayve, which is launching an on-road testing and development hub in Germany, contributing to the growth of skilled workers in the automotive industry.

Read also: