The European Automobile Manufacturers’ Association has urged EU institutions to quickly implement relief measures to boost electric vehicle demand before the new CO2 standards for cars and vans are enforced in 2025.
The European Automobile Manufacturers’ Association (ACEA) represents 15 leading Europe-based manufacturers of cars, vans, trucks, and buses, including notable names such as BMW Group, DAF Trucks, Daimler Truck, Ferrari, Ford of Europe, Honda Motor Europe, Hyundai Motor Europe, Iveco Group, JLR, Mercedes-Benz, Nissan, Renault Group, Toyota Motor Europe, Volkswagen Group, and Volvo Group, has called for immediate action from the European Commission to rejuvenate the demand for electric vehicles (EVs).
ACEA has expressed serious concerns over the ongoing decrease in market share for battery electric cars within the EU, describing it as a distressing indicator for both the industry and policymakers. They have urgently requested the EU institutions to introduce immediate relief measures before the implementation of new CO2 targets for cars and vans in 2025. Moreover, they advocate for an advancement of the scheduled reviews of CO2 regulations for light-duty and heavy-duty vehicles from 2026 and 2027 to 2025.
The organisation underscores its support for the Paris Agreement and the EU’s 2050 targets for decarbonizing transport, highlighting the significant investments made in electrification to market their vehicles. ACEA pointed out that the technology for vehicles and the availability of zero-emission vehicles are currently not the limiting factors. Despite the industry’s efforts in transitioning, there are still missing critical elements needed for this systemic change, such as a supportive competitive environment, as highlighted by the declining EU competitiveness noted in the Draghi report.
Recent EU car registration data further corroborates a persistent decline in the electric car market, as confirmed by ACEA.
On September 19, the ACEA Board articulated a lack of essential conditions required for escalating the production and adoption of zero-emission vehicles, including adequate charging and hydrogen refilling stations, a competitive manufacturing setting, accessible green energy, incentives for purchase and taxation, and a secure supply chain for raw materials, hydrogen, and batteries. They noted that economic growth, consumer acceptance, and confidence in infrastructure have not progressed sufficiently.
Faced with these challenges, there is increasing concern about achieving the 2025 CO2 emission reduction targets for cars and vans. The current regulations fail to consider the significant changes in the geopolitical and economic landscape in recent years, and the legislative inflexibility to adapt to actual developments further undermines the competitiveness of the sector.
This situation poses the grim possibility of incurring multi-billion-euro fines that could otherwise support the zero-emission transition or lead to unnecessary reductions in production, job losses, and a weakened European supply and value chain amidst intense global competition from other automaking regions.
The industry is urging that it cannot afford delays for the scheduled CO2 regulation reviews in 2026 and 2027, advocating for immediate and significant measures to halt the negative trend, restore the competitiveness of the EU industry, and alleviate strategic vulnerabilities. For heavy-duty vehicles, an earlier review is deemed crucial to ensure the scaling up of necessary infrastructure for trucks and buses in time.
ACEA is ready to engage in discussions on a package of short-term relief measures for the 2025 CO2 targets for cars and vans and seeks a fast-track, comprehensive review of the CO2 regulations for both cars and trucks, along with targeted secondary legislation to solidly position the zero-emission transition and secure Europe’s industrial future.
