Europe’s car industry is calling for urgent relief before new CO2 targets for cars and vans come into effect next year.
The European Automobile Manufacturers Association (ACEA) is also urging the European Commission to bring forward the CO2 regulation reviews for light-duty and heavy-duty vehicles, currently scheduled for 2026 and 2027 respectively, to 2025.
The Association’s requests come as it says year-to-date EU battery-electric sales volumes have dropped 8.4% in an already shrinking market. It also notes McKinsey data that found that only 16% of European non-EV owners are considering an EV as their next vehicle purchase, down from 18% in 2021. And that same McKinsey survey found that nearly 20% of current owners of BEVs in Europe said they would ‘likely’ or ‘very likely’ switch back to ICE vehicles.
In addition, the ACEA says the EU needs eight times more charging points per year by 2030 to meet CO2 targets.
In a statement, the ACEA says: “The European auto industry supports the Paris Agreement and the EU’s 2050 transport decarbonisation targets and has invested billions in electrification to bring vehicles to market. Today, vehicle technology and the availability of zero-emission vehicles are not bottlenecks. We are playing our part in this transition, but unfortunately, the other necessary elements for this systemic shift are not in place. An aggravating factor is the rapid erosion of the EU’s competitiveness….”
It goes on: “We are missing crucial conditions to reach the necessary boost in production and adoption of zero-emission vehicles: charging and hydrogen refilling infrastructure, as well as a competitive manufacturing environment, affordable green energy, purchase and tax incentives, and a secure supply of raw materials, hydrogen and batteries. Economic growth, consumer acceptance and trust in infrastructure have not developed sufficiently either.
“As a result, the zero-emission transition is highly challenging, with concerns about meeting the 2025 CO2 emission reduction targets for cars and vans on the rise. The current rules do not account for the profound shift in the geopolitical and economic climate over the past years and the law’s inherent inability to adjust for real-world developments further erodes the competitiveness of the sector.”
The ACEA goes on to warn of either multi-billion-euro fines, which could otherwise be invested in the zero-emission transition, or unnecessary production cuts, job losses and a weakened European supply and value chain at a time when its faces fierce competition from other regions.
“The industry cannot afford to wait for the review of the CO2 regulations in 2026 and 2027, we need urgent and meaningful action now to reverse the downward trend, restore EU industry competitiveness and reduce strategic vulnerabilities. For heavy-duty vehicles, an earlier review will also be absolutely critical to ensure vital conditions like infrastructure for trucks and buses are scaled up in time.”
