Overview

• The EU Commission has presented a comprehensive action plan to support the automotive industry, which contributes 7% to Europe's GDP and employs 14 million people.
• Key measures include granting automakers more flexibility in meeting CO2 emissions targets by allowing compliance over multiple years instead of annually.
• The plan proposes a €1 billion investment in autonomous driving technologies and a €1.8 billion innovation fund to secure raw materials and enhance battery production competitiveness.
• Initiatives to promote electric vehicle adoption include social leasing programs for low-income households and incentives for businesses to transition their fleets to climate-neutral vehicles.
• The Commission will review the 2035 ban on new combustion engine vehicles this year, with potential consideration of alternative technologies like e-fuels.