European car industry calls for help ahead of tougher regulations

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European carmakers asked the EU on Thursday for “urgent” help as sales of electric vehicles fall and tougher emissions rules come into force next year.

The European Automobile Manufacturers Association (ACEA) said the industry was making every effort to meet decarbonisation targets but was hampered by issues including a shrinking electric car market, a lack of charging infrastructure and the declining competitiveness of the EU manufacturing sector.

In a formal submission to Brussels, the industry lobby group asked “EU institutions to propose urgent support measures before the new CO2 emissions targets for cars and vans come into force in 2025.”

Europe is racing against time to produce more electric vehicles as part of its green transformation, with the EU’s 2035 deadline to phase out sales of fossil fuel-powered cars getting shorter.

However, after years of growth, electric car sales began to decline in late 2023 and now account for just 12.5% ​​of new cars sold on the continent.

Global car sales have also stagnated and remain around 18 percent lower than before the pandemic, according to ACEA.

“We are playing our part in this transformation,” we read in ACEA’s appeal, pointing to manufacturers’ implementation of electric vehicle technologies.

“We lack key conditions to achieve the necessary increase in production and deployment of zero-emission vehicles: hydrogen charging and refueling infrastructure, a competitive production environment, affordable green energy, purchasing and tax incentives, and a secure supply of raw materials, hydrogen and batteries,” it added.

“This creates the terrifying prospect of either multi-billion euro fines that could otherwise be invested in the zero-emissions transition, or unnecessary production cuts, job losses and a weakening of Europe’s supply and value chains.”

The lobby group has asked the commission to bring forward a planned review of CO2 rules, which is scheduled for 2026 and 2027.

However, according to a report by the think tank Transport & Environment (T&E), sales of electric vehicles are forecast to increase next year and will account for as much as 24 percent of new cars sold in Europe.

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