Auto industry urges EU to rethink green mobility strategy

European automotive manufacturers and suppliers have called on the European Union to rethink its green mobility strategy, warning that current policies risk undermining the continent’s competitiveness and slowing the transition to a low-carbon future.

In a joint letter addressed to European Commission President Ursula von der Leyen, the European Automobile Manufacturers’ Association (ACEA) and the European Association of Automotive Suppliers (CLEPA) outlined their expectations ahead of the Strategic Dialogue on the Future of the Automotive Industry set for 12 September.

“We want to make this transition work — but we’re frustrated by the lack of a holistic and pragmatic policy plan for the automotive industry’s transformation,” the letter states. “We are being asked to transform with our hands tied behind our backs.”

Key concerns raised

The signatories warn that the EU risks “missing the turn” on its automotive transition unless it recalibrates its strategy. Among the challenges cited:

• Global supply chain vulnerabilities — Europe’s heavy dependence on Asia for battery production and critical raw materials.
• Insufficient charging infrastructure — uneven deployment across EU member states, hampering EV adoption.
• High production costs — including rising energy prices and trade tariffs, notably the 15% duty on EU vehicle exports to the US.
• Lagging consumer demand — battery-electric vehicles currently account for only 15% of car sales, 9% of vans, and 3.5% of trucks in the EU.

A call for policy flexibility

ACEA and CLEPA argue that the EU’s rigid CO2 reduction targets for 2030 and 2035 are “no longer feasible” under current conditions. Instead, they propose:

• Recalibrating CO2 regulations to reflect industrial and geopolitical realities.
• Expanding incentives for consumers and businesses, including purchase subsidies, tax breaks, and lower charging costs.
• Maintaining technology neutrality, supporting not only battery-electric vehicles but also plug-in hybrids, hydrogen fuel cells, efficient internal combustion engines, and decarbonised fuels.
• Investing in strategic autonomy by strengthening Europe’s position in battery, semiconductor, and raw material value chains.
• Recognising manufacturing decarbonisation efforts and incentivising innovation along the supply chain.

Strategic Dialogue seen as ‘last-chance saloon’

The automotive sector has pledged €250 billion in investments toward the green transition by 2030 and has introduced hundreds of new electric vehicle models. Yet industry leaders caution that policy misalignment could jeopardise Europe’s innovation capacity, quality jobs, and supply chain resilience.

“The upcoming Strategic Dialogue is the EU’s last-chance saloon to adjust its policies for today’s market, geopolitical, and economic realities — or risk jeopardising one of its most successful and globally competitive industries,” the letter warns.

The 12 September Strategic Dialogue is expected to serve as a critical platform for reconciling climate ambitions with industrial competitiveness, as policymakers and industry stakeholders seek a more pragmatic, market-driven approach to the sector’s green transition.

The full letter can be accessed here.