The European Commission has unveiled a streamlined Automotive Package aimed at supporting the sector’s shift to clean mobility while easing regulatory pressure on manufacturers and strengthening EU industrial competitiveness.
The package maintains a strong policy signal in favour of zero-emission vehicles, while introducing greater flexibility in meeting CO₂ targets and responding to industry calls for simpler rules. An automotive “omnibus” is expected to cut administrative costs by around €706 million per year, improve investment certainty and support vehicles and batteries made in the European Union.
Under the proposals, carmakers would be required from 2035 to achieve a 90% reduction in tailpipe emissions, with the remaining 10% offset through low-carbon EU-made steel, e-fuels or biofuels. This would allow plug-in hybrids, range extenders and other hybrid technologies to continue alongside electric and hydrogen vehicles beyond 2035.
Before 2035, manufacturers could benefit from “super credits” for small, affordable electric cars produced in the EU. Additional flexibilities include banking and borrowing of CO₂ credits between 2030 and 2032, a lower 2030 emissions reduction target for vans, and eased compliance for heavy-duty vehicles.
On the demand side, the Commission proposes binding national targets to decarbonise corporate vehicle fleets, boosting the availability of zero- and low-emission vehicles in both new and second-hand markets.
The package also includes a €1.8 billion Battery Booster to accelerate a fully EU-based battery value chain, including €1.5 billion in interest-free loans for battery cell producers, alongside measures to reduce reliance on dominant global suppliers.
Commission President Ursula von der Leyen said the proposals reflect extensive dialogue with stakeholders and aim to keep Europe “at the forefront of the global clean transition” while safeguarding jobs, innovation and competitiveness.
