On 16 December 2025, the European Commission presented the Automotive Package to support the sector's efforts in the transition to clean mobility. This comprehensive policy framework sets ambitious yet pragmatic rules to ensure climate neutrality by 2050 and strategic independence whilst providing more flexibility to manufacturers. The package responds directly to calls from EU industry to simplify rules and reduce administrative burden, building on the Clean Industrial Deal, the Competitiveness Compass, and the Industrial Automotive Action Plan developed through an inclusive Strategic Dialogue launched in January 2025 with industry stakeholders, Member States, and social partners.

Europe's automotive sector stands at a critical turning point, challenged by rapid technological changes, increasing global competition, and the imperative to achieve climate neutrality. As a cornerstone of the European economy employing millions across the continent, the automotive sector's successful transformation is essential not only for achieving climate goals but also for maintaining Europe's industrial leadership and strategic autonomy in an increasingly complex geopolitical landscape.

• Revised CO₂ emission standards for cars and vans provide further flexibilities whilst maintaining a clear market signal towards electrification. From 2035 onwards, carmakers must comply with a 90% tailpipe emissions reduction target, whilst the remaining 10% emissions can be compensated through use of low-carbon steel Made in the Union, or from e-fuels and biofuels, enhancing technological neutrality and supporting diverse decarbonisation pathways.
• New regulation on clean corporate vehicles accelerates zero-emission vehicle uptake in company fleets. From 2030, mandatory targets at Member State level will ensure specific shares of new corporate car and van registrations by large companies are zero- and low-emission, with sub-targets for zero-emission vehicles. This is significant as corporate vehicles account for 60% of new car registrations and up to 90% of van registrations across the EU.
• Battery Booster Strategy allocates €1.8 billion for a fully EU-made battery value chain, strengthening Europe's strategic independence and industrial capabilities in this critical technology sector whilst reducing reliance on external suppliers.

This comprehensive package places research and innovation at the heart of Europe's automotive transformation, recognising that achieving 2050 climate neutrality requires breakthrough technologies across the entire mobility ecosystem. The revised framework maintains strong ambition for zero-emission vehicles whilst introducing targeted flexibilities enabling manufacturers to pursue diverse technological pathways including battery electric vehicles, hydrogen fuel cells, e-fuels, and advanced biofuels, supported by innovations in low-carbon manufacturing processes.

Source: https://transport.ec.europa.eu/transport-themes/action-plan-future-automotive-sector/automotive-package_en