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Brussels, |
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AUTOMOTIVE
Policy and Strategy
The EU’s policy framework for the automotive industry positions the sector as both a backbone of the EU economy and a test-bed for the Union’s twin green-and-digital transition. Accounting for 13.8 million direct and indirect jobs and exerting a powerful multiplier effect on upstream suppliers and downstream services, the industry is too strategic to fail—yet it remains one of the largest sources of air-pollution and carbon emissions on Europe’s roads.
Against this backdrop, the Commission pursues a dual objective: preserve an integrated single market for vehicles while driving the shift to climate neutrality and enhanced road-safety.
The strategy therefore couples high environmental and safety standards with instruments that reinforce global competitiveness and a level playing field inside the Union.
To deliver, Brussels is leaning on five strategic levers.
Layered onto these pillars are cross-cutting flagship agendas--Connected & Automated Mobility for digital leadership and zero-collision roads, and the push for a resilient, sustainable battery ecosystem that underwrites mass electrification.
Together they sketch a roadmap that is as much about industrial power and strategic autonomy as it is about decarbonising Europe’s transport network.
Against this backdrop, the Commission pursues a dual objective: preserve an integrated single market for vehicles while driving the shift to climate neutrality and enhanced road-safety.
The strategy therefore couples high environmental and safety standards with instruments that reinforce global competitiveness and a level playing field inside the Union.
To deliver, Brussels is leaning on five strategic levers.
- Smart regulation—stricter, but streamlined, type-approval and market-surveillance rules to boost trust and cut red tape.
- International harmonisation—alignment with UNECE and other fora to keep export markets open and development costs down.
- Bilateral regulatory dialogues—preventing divergent standards with key partners and securing reciprocal market access.
- Access to finance for SMEs—via COSME, the SME Instrument and InvestEU, ensuring the supply chain can scale and innovate.
- Future-proof capabilities—the Blueprint-driven DRIVES skills alliance and the European Battery Alliance, which anchor Europe’s workforce upskilling and battery sovereignty, respectively.
Layered onto these pillars are cross-cutting flagship agendas--Connected & Automated Mobility for digital leadership and zero-collision roads, and the push for a resilient, sustainable battery ecosystem that underwrites mass electrification.
Together they sketch a roadmap that is as much about industrial power and strategic autonomy as it is about decarbonising Europe’s transport network.
Key points
- Strategic importance of the sector
The EU automotive industry supports 13.8 million jobs directly and indirectly, with a strong multiplier effect across other industrial sectors, while road-transport emissions remain a major source of air pollution. - Overall policy goals
EU action seeks to create a single market for vehicles, guarantee high standards of environmental protection and road safety, strengthen global competitiveness and keep a fair level playing field for manufacturers and suppliers. - Skills & workforce development
- A sector-specific Blueprint for Cooperation on Skills launched the DRIVES project (2018-2021) to forecast skill needs and design vocational training.
- A COSME-funded follow-up (2019) focuses on up-/reskilling strategies for SMEs in and beyond the EU.
- European Battery Alliance
Batteries are deemed “a strategic imperative” for both the clean-energy transition and the competitiveness of Europe’s car industry; the alliance, begun in 2017, is making “major progress”. - Connected & automated mobility
The Commission’s 2018 strategy (COM/2018/283) aims to make Europe a world leader in autonomous and connected vehicles, unlocking system-wide safety and efficiency gains. - Four competitiveness pillars
- Smart regulation – improved EU type-approval rules and competitiveness proofing of all proposals;
- International harmonisation – aligning technical requirements globally (UNECE) to cut costs;
- Bilateral regulatory dialogues – promoting coherent rules with non-EU partners, especially on energy saving and emissions;
- Access to finance & market support for SMEs – via programmes such as COSME and the SME Instrument.
