EU Automobile Package Boosts Clean Mobility

The European Commission has unveiled an ambitious Automobile Package aimed at accelerating the EU automotive sector’s transition toward clean mobility, decarbonisation, and global competitiveness.

The initiative combines targeted regulatory adjustments, financial incentives, and simplified compliance mechanisms to help vehicle manufacturers navigate rapid technological change while remaining competitive in global markets.

The package forms a key pillar of the EU’s broader strategy to achieve climate neutrality by 2050, while safeguarding industrial strength and employment across the automotive value chain.

What’s in the Package?

1. Strategic Support for Clean Mobility

At the core of the package is a strengthened policy framework to accelerate the deployment of zero- and low-emission vehicles across Europe. The Commission reinforces long-term market signals for electric mobility while allowing flexibility in how manufacturers achieve emissions reductions.

By aligning transport policies with climate objectives, the initiative supports a predictable transition pathway for industry and investors.

Why it matters?

Road transport remains a significant contributor to EU CO₂ emissions. Accelerating vehicle decarbonization is essential to meeting climate targets and supporting sustainable economic growth.

2. Greater Flexibility and Technological Neutrality

To reflect real-world industrial challenges, the Commission introduces enhanced flexibility in meeting CO₂ standards. Key measures include:

• Technological neutrality, enabling multiple solutions to contribute to emissions reductions
• Adjusted compliance pathways for heavy-duty vehicles
• Optional super-credits for small, affordable electric vehicles manufactured within the EU

These measures aim to preserve climate ambition while supporting innovation and production viability.

3. Strengthening the Battery Ecosystem

The package places strong emphasis on building a competitive and resilient European battery value chain. Measures include:

• Accelerated investment in EU-produced batteries
• Targeted support to improve cost competitiveness and infrastructure
• Integration of battery strategy with vehicle electrification goals

This approach supports strategic autonomy and reduces dependency on external supply chains.

4. Enhanced Consumer Transparency

Updated vehicle labelling and information requirements will ensure that consumers clearly understand:

• Fuel and energy efficiency performance
• CO₂ emissions data
• Manufacturing origin, including EU production

Improved transparency empowers consumers to make informed purchasing decisions in both new and used vehicle markets.

5. Economic Impact and Growth Outlook

a. Cost Savings and Simplification

The Commission estimates annual savings of approximately €706 million for manufacturers through streamlined reporting obligations and simplified compliance rules, delivering long-term regulatory certainty.

b. Jobs and Industrial Growth

By supporting clean mobility and European manufacturing, the package is expected to stimulate growth in vehicle sales, battery production, and related supply chains, while preserving and creating jobs across automotive regions.

Strategic Context

The Automobile Package responds to industry calls for a balanced policy approach—maintaining climate ambition while offering pragmatic solutions during the sector’s transformation. It builds extensive strategic dialogue with manufacturers, Member States, and civil society.

European Commission President Ursula von der Leyen has underlined the importance of innovation, competitiveness, and clean mobility to ensure Europe remains a global leader in automotive transformation.

Looking Ahead

As implementation progresses, the Commission will continue engaging with stakeholders to ensure the package delivers a resilient, innovative, and sustainable European automotive ecosystem, aligned with climate, industrial, and consumer priorities.

Source:

1. Commission takes action for clean and competitive automotive sector
2. Questions and answers on the Automotive Package