European Car Industry Urges Quick Action Amid Plunging EV Demand

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.

- Advertisement -

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.

- Advertisement -
Loading form…
Aryaman Raghuvanshi
Aryaman Raghuvanshi
Aryaman Raghuvanshi is a Journalist at EFY. His passion is to explore the future of mobility, which gets him to cover latest technologies shaping the future of automobiles and EVs. But, at times he writes on broader technologies too. LinkedIn: https://www.linkedin.com/in/aryaman-raghuvanshi-2431b7153

Industry's Buzz

TDB Backs Manastu Space with ₹1.16 bn to Advance Indigenous Green Propulsion Technology

0
Manastu Space is developing a hydrogen peroxide-based green propulsion system with additives, supported by an integrated engine and catalyst architecture The Technology Development Board (TDB),...
Image for representation purpose

SandStone Cuts Automotive Electronics Data Storage Costs By 65 Per Cent

0
SandStone claims 65% lower storage costs with its inspection-data management system at a Thai automotive parts plant, accelerating quality-data retrieval from hours to seconds. SandStone...
Electronics and IT Minister Ashwini Vaishnaw

India Targets Homegrown Smartphone Brand by October 2028

0
India targets October 2028 for a homegrown smartphone brand, with Ashwini Vaishnaw citing domestic PCB design capabilities and a 5G-plus handset developed for a...
Image for representation purpose

Malaysia’s Electronics Exports Ride the AI Boom

0
Malaysia’s exports rose 34% to RM1.571 trillion in the first nine months of 2026, as AI and semiconductor demand drove a RM253.88 billion increase...
C-DAC

C-DAC, BOI Join Hands For Indigenous Quantum Solutions

0
C-DAC and Bank of India will explore indigenous quantum and quantum-safe technologies to strengthen banking cybersecurity, assess emerging applications and develop domestic advanced computing...

Learn From Leaders

Pravin Patel, Founder and Chairman, Brio Agri, India

“Our goal is not to replace farmers, but to empower them with better tools,...

0
In an exclusive interaction with EFY's Saba Aafreen, Pravin Patel, Founder and Chairman of Brio Agri, discusses building hydroponics and controlled-environment agriculture in India,...

Does India’s Chip Packaging Growth Need Local Materials At Scale?

0
What will it take for specialised semiconductor materials manufacturing to grow in India? Packaging volumes will be a key factor as OSAT facilities move...
Ronak Kumar Samantray, Founder, TM2Space Technologies Pvt Ltd.

“Our goal is to build data centres in space.” – Ronak Kumar Samantray, TM2Space

0
A space startup aims to build orbital data centres, letting users run AI models and store data on satellites while also supplying satellite hardware...

India’s Photonics Puzzle Is Finally Coming Together 

0
Can India turn its scattered photonics capabilities into a stronger industry? A new association aims to connect the ecosystem and strengthen the domestic value...
Jin Bains, CEO, Mini-Circuits

Mini-Circuits CEO Jin Bains on Navigating High-Frequency Component SWaP-C Constraints, Emerging Markets, and Career...

0
In this exclusive, Jin Bains, Chief Executive Officer (CEO) of Mini-Circuits, explains in a conversation with Dilin Anand of EFY about areas of emerging...

Startups

Manish Seth, Founder, Vimag Labs

Beyond Rare-Earth Magnets: How Vimag Labs Is Reimagining Electric Motors – Manish Seth, Vimag...

0
Can software replace rare earth magnets in electric motors? Manish Seth of Vimag Labs speaks to EFY’s Nitisha Dubey about Virtual Magnet Technology, which...
Pavan Kosaraju, Founder of AquaExchange

“Our AI Predicts Shrimp Disease Three To Four Days Before Visible Symptoms Appear.”- Pavan...

0
An agritech startup has built AI- and IoT-powered solutions that help shrimp farmers monitor ponds, detect diseases early, automate feeding, and reduce operational risks....
Pranay Rebala, Vice President of Product, BluJ Aerospace

“Rather Than Waiting For The Technology To Mature, We Are Ready For The Next...

0
Can battery-electric and hydrogen propulsion coexist in future VTOL aircraft? BluJ Aerospace sees complementary roles for both, with batteries powering shorter-range flights and hydrogen...

UST Selects 19 Startups for D3 Startup Challenge 2026 in Bengaluru

0
The programme is designed to identify technologies that address business challenges, assess their practical applications and determine their potential to scale UST, an AI and...

Compcarta Reduces The Cost And Complexity Of End-To-End Chip Design

0
Building a chip should not require assembling an entire design ecosystem. A Noida-based startup is developing a browser-based EDA platform that aims to reduce...