Over the past month, speculation has arisen regarding the possibility of the European Union (EU) launching an incentive scheme aimed at encouraging consumers to purchase electric vehicles (EVs) in response to the market’s deceleration.
Mobility Portal Europe reached out to the European Commission for clarification, yet no definitive response was provided.
Instead, the institution reaffirmed its commitment to supporting the automotive sector.
“We consider that it is indeed crucial to support the EU’s struggling automobile manufacturers,” they state.
They further emphasise: “President Ursula von der Leyen has already mentioned several times that this is a key priority for the Commission.”
Indeed, the EU leader recently initiated the Strategic Dialogue on the Automotive Industry.
Within this framework, key representatives from the European automotive sector, social partners, and relevant stakeholders were convened to deliberate on the future of the continent’s automotive industry.
This initiative aims to address existing challenges and secure the sector’s continued success as a fundamental pillar of the European economy.
“It provides an opportunity to look, with an open view, into all proposals that will support Europe’s automotive industry,” Commission officials tell Mobility Portal Europe.
They add: “It will be up to participants to discuss the most appropriate measures, on the basis of which the Commission will take action.”
The outcome of these discussions will be a comprehensive action plan, scheduled for presentation on 5 March.
This plan will outline a strategy to ensure the sector’s sustained growth within Europe and its ability to compete effectively on a global scale.
“The European automotive industry is at a critical juncture, and we recognise the challenges it faces. This is why we are acting swiftly to address them,” declared von der Leyen.
The list of participating automotive companies includes BMW Group, Renault Group, Volkswagen Group, Volvo Cars, Volvo Group, and Valeo.
One notable aspect of the inaugural meeting was the absence of Tesla and Stellantis.
When questioned by the press, European Chief Spokesperson Paula Pinho explained that attendance was restricted due to a limited number of participants, with priority given to European manufacturers.
“This does not mean we do not value the input of stakeholders from outside the EU. They will have opportunities to participate in future meetings and contribute through the public consultation process,” she clarified.
Will there be changes to penalties for manufacturers?
Another key topic during the press briefing was the potential leniency the European Commission might apply in 2025 regarding penalties imposed on manufacturers failing to meet emissions reduction targets.
Pinho explained that while Brussels remains open to discussions on the difficulties facing the industry, this does not imply an intention to abolish sanctions.
“Flexibility should not be interpreted as a decision to halt these penalties; rather, we are seeking solutions to strike a balance with the realities of the sector,” she asserted.
Read more: Hayer (Renew Europe): “Europe must stay firm on the green transition despite Trump”
Industry pushes the Commission for EV purchase subsidies
Recently, France proposed a unified support scheme for EU member states.
Specifically, Industry Minister Marc Ferracci outlined to local media a proposal to implement an incentive programme for EVs, modelled on the system currently in place in The French Republic.
This scheme provides subsidies based on the carbon footprint of vehicle and battery production, among other factors, and excludes EVs manufactured in China.
Meanwhile, German Chancellor Olaf Scholz announced that the EU is developing a support plan aimed at stimulating EV purchases.
This initiative is intended to assist the bloc’s automotive industry, which is currently grappling with declining demand.
During his address at the World Economic Forum in Davos, Scholz highlighted the importance of strengthening the European economy and reducing bureaucracy to navigate global challenges effectively.
He also stressed the need for pragmatic, non-ideological solutions and welcomed Ursula von der Leyen’s revival of a proposal for harmonised EV incentives across Europe.
However, when approached by Mobility Portal Europe, the Commission refrained from commenting on a consumer-targeted subsidy framework.
Read more: Top companies gather at the “Storage, Renewable and Electric Vehicles Integration Forum”
