The European Commission has taken a decisive step with the publication of the Industrial Action Plan for the European Automotive Sector, a strategy aimed at strengthening the continent’s position in a highly competitive and rapidly transforming global market.
With a budget set to mobilize billions of euros in the coming years, the document establishes key measures in four main areas that will directly impact electric mobility.
1. Electrification of Corporate and Logistics Fleets
The new plan acknowledges the strategic importance of corporate and heavy-duty transport fleets in the transition to electromobility.
Currently, vehicles purchased by businesses account for approximately 60% of new registrations in the EU. To accelerate their decarbonization, the European Commission announced:
- A new regulation for corporate fleet electrification, with specific incentives for businesses and large logistics operators to adopt electric vehicles. The regulation is expected to be presented by the end of 2025.
- Toll exemptions for electric trucks beyond 2025, through an amendment to the Eurovignette Directive.
- Regulations for the conversion of diesel trucks and buses to electric, facilitating their approval within the regulatory framework of the UN (UNECE).
2. Expansion of Charging Infrastructure
The deployment of charging points remains one of the main barriers to the mass adoption of electric vehicles.
To address this issue, the European Commission will allocate €570 million between 2025 and 2026 through the Alternative Fuels Infrastructure Facility (AFIF), with a focus on charging infrastructure for trucks and commercial vehicles.
Additionally, the plan includes:
- The development of a “European Clean Transport Corridor” to deploy fast-charging corridors along the EU’s main logistics routes.
- The implementation of measures to accelerate permits for grid connection, facilitating the expansion of high-power charging stations.
- Incentives for the installation of energy storage at charging stations, to optimize the stability of the electrical grid.
3. Boosting Battery Production and Industry Competitiveness
Batteries account for 30 to 40% of the value of an electric vehicle, making them a strategic pillar for the European automotive industry.
To reduce import dependency and strengthen the supply chain, the European Commission has launched the Battery Booster program, which includes:
- €3 billion from the Innovation Fund for the development and production of batteries in the EU.
- Financial incentives for the construction of new gigafactories and for the extraction and processing of critical raw materials, such as lithium and nickel, within the continent.
- Regulations to promote battery recycling and circularity, ensuring a more sustainable supply.
4. Regulations to Ensure a Fair and Competitive Market
The European Commission also aims to strengthen the regulatory framework to prevent unfair practices and consolidate the European automotive sector’s position.
Key measures include:
- Stricter conditions for foreign investment, ensuring that joint venture agreements and technology transfers benefit the European industry.
- Review of rules of origin in trade agreements, aiming to reduce dependence on vehicle and key component imports.
- Measures against unfair practices in the battery and electric vehicle sectors, including tariffs on imports that receive state subsidies from third countries.
The Industrial Action Plan for the European Automotive Sector establishes a comprehensive framework to consolidate the transition to electric mobility in the region.
With measures focused on fleet electrification, charging infrastructure expansion, battery industry strengthening, and a more robust regulatory framework, the EU aims to reclaim its leadership in the global automotive industry.
The key now will be the effective implementation of these initiatives and the collaboration between the public and private sectors to ensure a competitive and sustainable transition.
