Europe is rebooting its car industry rulebook to keep clean mobility moving without kneecapping manufacturers.
The European Commission has unveiled a sweeping Automotive Package designed to hold the line on decarbonisation while cutting costs easing red tape and shoring up Europe’s industrial base.
The goal is simple:hit climate neutrality by 2050 while keeping production investment and jobs in the EU.
The centrepiece is flexibility without retreat.
Carmakers must still deliver a 90%cut in tailpipe emissions from 2035 but the final 10%can be offset using low-carbon steel made in the EU or alternative fuels such as e-fuels and biofuels.
Electric and hydrogen vehicles remain the backbone but plug-in hybrids range extenders and combustion engines are not wiped out overnight.
Before 2035 the Commission is loosening the runway.Manufacturers can bank and borrow emissions credits around the 2030 targets while“super credits”reward small affordable electric cars built in Europe.
Vans get extra leeway too with the 2030 CO₂target cut from 50%to 40%to reflect slower uptake.
Demand is getting a push as well.New binding national targets for corporate fleets will force faster adoption of zero-and low-emission vehicles pushing cleaner cars into both first-hand and second-hand markets where the biggest emissions savings sit.
Batteries are treated as strategic kit not just components.
A€1.8 billion(£1.55 billion)Battery Booster includes€1.5 billion(£1.29 billion)in interest-free loans to back EU battery cell makers reduce reliance on overseas suppliers and build a full domestic value chain.
Red tape is also in the firing line with the Automotive Omnibus promises cost savings of around€706 million(£607 million)a year through simpler rules fewer secondary laws and streamlined testing.
Commission President Ursula von der Leyen said:“As technology rapidly transforms mobility and geopolitics reshapes global competition Europe remains at the forefront of the global clean transition.”
Europe is sticking with clean cars but it is done pretending the transition will be painless or one-size-fits-all.
