BRUSSELS (AFP) – Europe’s carmakers are in “mortal danger”, European Union (EU) Industry Chief Stephane Sejourne warned as the bloc launched a much-vaunted plan yesterday to rescue its auto sector.
The sector is the jewel in Europe’s industrial crown, employing around 13 million people and contributing some seven percent to the EU’s economy.
But with factory closures in Europe and United States (US) President Donald Trump’s tariffs threatening to upend the global trading system, the industry faces rising risks – and has demanded Brussels act urgently.
“This is a pivotal moment for this industry,” Sejourne told AFP in an interview marking the rollout of the plan.
The project includes boosting demand for electric vehicles (EV) by accelerating uptake in corporate fleets and providing more support for ‘Made in Europe’ batteries.
“The European Commission is letting go of its naivety, protecting the sector, giving it the opportunity to become more competitive,” said Sejourne, before heading to a Renault factory in northern France for the launch.
The auto push forms part of the EU’s pivot to bolstering the bloc’s competitivity and protecting its industry as rivals speed ahead in the US and China.
Europe has “not lost” the battle for electric cars, Sejourne insisted, as the bloc’s industry faces fierce competition from Chinese EV makers.
Concerns have grown over the uptake of electric cars after their market share in the EU fell for the first time in 2024, to 13.6 per cent.
Brussels is considering what “obligations” to impose on companies to force them to buy more electric cars, Sejourne said.
There could be quotas imposed in a text presented by the end of the year, and the EU wants member states to offer “tax incentives” to businesses to encourage sales.
Company vehicles are a powerful lever because they represent nearly 60 per cent of new registrations in Europe.
Brussels is now pushing for its decarbonisation goals to go hand in hand with strengthening competitivity – which means greater production in Europe.
“I want European consumers to be able to buy European vehicles,” Sejourne said.
The EU will introduce a law that demands European content requirements on battery cells and components in EVs sold in the EU.
“We are currently working on the list” of the components concerned, Sejourne said.
“All countries are doing it today, whether it is the United States, China, India. Only Europe has not set up these measures,” he added.
Brussels also believes the current EV charging infrastructure is insufficient in Europe and unevenly distributed, which the industry says is a barrier to sales.
The commission said it will mobilise EUR570 million (USD610 million) between 2025 and 2026 to “accelerate the rollout of charging infrastructure”.
Under the plan, the EU will set up an alliance to close the gap in key technologies currently dominated by China and the US, including autonomous cars.
Self-driving vehicles are a growing presence on Chinese and US roads but the rollout in Europe has been slower – a cause for concern for Brussels.
