The Commission today presented the Automotive Package to support the sector's efforts in the transition to clean mobility. It sets an ambitious yet pragmatic policy framework to ensure 2050 climate neutrality and strategic independence while providing more flexibility to manufacturers. It also responds to calls by EU industry to simplify rules.
\nThe automotive sector has been key to Europe's industrial strength for decades, sustaining millions of jobs and driving technological innovation. As the world is changing, the car industry is transforming through new technologies and actors.
\nToday's package maintains a strong market signal for zero-emission vehicles (ZEV) while giving the industry more flexibility to achieve CO2 targets, and supports vehicles and batteries made in the European Union. The corporate vehicles initiative will support the uptake of zero- and low-emission vehicles. The automotive omnibus enhances competitiveness by saving costs, expected to be approximately €706 million per year, and cutting red tape, while providing greater investment certainty.
\nCommission President von der Leyen said: “Innovation. Clean mobility. Competitiveness. This year, these were top priorities in our intense dialogues with automotive sector, civil society organisations and stakeholders. And today, we are addressing them all together. As technology rapidly transforms mobility and geopolitics reshapes global competition, Europe remains at the forefront of the global clean transition.”
\nStaying the course towards clean mobility with pragmatism
\nThe Commission presents a package that addresses both supply and demand of the automotive sector's transition: on the supply side, it presents a review of the existing CO2 emission standards for cars and vans and a targeted amendment to those for heavy-duty vehicles (HDVs). On the demand side, it proposes an initiative to decarbonise corporate vehicles with binding national targets for zero- and low-emission vehicles.
\nThe CO2 standards now provide further flexibilities to support the industry and enhance technological neutrality, while providing predictability to manufacturers and maintaining clear market signal towards electrification.
\nFrom 2035 onwards, carmakers will need to comply with a 90% tailpipe emissions reduction target, while the remaining 10% emissions will need to be compensated through the use of low-carbon steel Made in the Union, or from e-fuels and biofuels.
\nThis will allow for plug-in hybrids (PHEV), range extenders, mild hybrids, and internal combustion engine vehicles to still play a role beyond 2035, in addition to full electric (EVs) and hydrogen vehicles.
\nPrior to 2035, car manufacturers will be able to benefit from “super credits” for small affordable electric cars made in the European Union. This will incentivise the deployment on the market of more small EV models. For the 2030 target for cars and vans, additional flexibility is introduced by allowing “banking & borrowing” for 2030-2032. An additional flexibility is granted for the vans segment, where the electric vehicle uptake has been structurally more difficult, with a reduction of the 2030 CO2 vans target from 50% to 40%.
\nThe Commission is also proposing a targeted amendment to the CO2 emission standards for heavy-duty vehicles with a flexibility easing the compliance with the 2030 targets.
\nRegarding corporate vehicles, mandatory targets are set at the Member State level to support the zero- and low-emission vehicle uptake by large companies. Having more zero- and low-emission vehicles on the market, both first- and second-hand markets – will benefit all customers. As companies' cars cover higher yearly mileages, it also means more emission reductions. It will also make zero- or low- emissions and “Made in the EU” a pre-requisite for vehicles benefitting from public financial support.
\nStrengthening Europe's own battery industry
\nWith €1.8 billion, the Battery Booster will accelerate the development of a fully EU-made battery value chain. As part of the Battery Booster, €1.5 billion will support European battery cell producers through interest-free loans. Additional targeted policy measures will support investments, create a European battery value chain and foster innovation and coordination across Member States. These measures will enhance the cost competitiveness of the sector, secure upstream supply chains and support sustainable and resilient production in the EU, contributing to the derisking from dominant global market players.
\nLess red tape and stronger enabling conditions for the transition
\nThe Automotive Omnibus will ease administrative burden and cut costs for European manufacturers, boosting their global competitiveness, and freeing up resources for decarbonisation. Businesses are expected to save approximately €706 million per year, bringing the administrative savings thanks to all omnibuses and simplification initiatives the Commission has presented so far to around €14.3 billion per year. Among other things, it proposes to reduce the number of secondary legislation that will be adopted in the upcoming years and to streamline testing for new passenger vans and trucks. This will reduce costs while maintaining highest environmental and safety standards. The roll-out of electric vans in domestic transport is supported by measures that place them on an equal footing with internal combustion vans regarding drivers' rest times and rules.
\nThe Omnibus also introduces a new vehicle category under the Small Affordable Cars initiative, covering electric vehicles up to 4.2 meters in length. This will enable Member States and local authorities to develop targeted incentives, stimulating demand for small EVs made in the EU.
\nThe Commission is also updating and harmonising car labelling rules, for customers to have complete information about the cars' emissions when making purchases.
\nBackground
\nToday's proposals build on the Automotive Action Plan, and input from industry and key stakeholders gathered during the Strategic Dialogue under President von der Leyen's leadership since January 2025.
\nIn January 2025, President von der Leyen launched a Strategic Dialogue on the Future of the Automotive Industry, bringing together industry representatives, social partners, Member States, regions and civil society. Three Dialogue meetings have taken place to date, providing a platform to discuss the challenges and opportunities the sector faces.
\nFor more information
\n\nFactsheet - Taking action for a clean and competitive European automotive sector
\nFactsheet – Revision of the CO2 standards and Corporate vehicles Proposal
\nAutomotive Package – webpage (all proposals will be available)
\nAutomotive Action Plan – webpage
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Read-out of the weekly meeting of the von der Leyen Commission by Stéphane Séjourné, Executive Vice President of the European Commission, Valdis Dombrovskis, Wopke Hoekstra, and Apostolos Tzitzikostas, European Commissioners, on the Automotive package
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As technology rapidly transforms mobility and geopolitics reshapes global competition, Europe remains at the forefront of the global clean transition.","extractDateDt":"2025-12-16T00:00:00.000+01:00","orderNb":1,"type":"TEXTEXTREA"},{"ky":88789,"author":{"ky":5768,"authorName":"Stéphane Séjourné, Executive Vice-President for Prosperity and Industrial Strategy","language":{"langCd":"EN"},"pictureUri":"https://ec.europa.eu/commission/presscorner/api/image/content/stephane-sejourne-cards-author-nms-120x120.png"},"extract":"This package will be a lifeline for the European automotive industry. We are pulling every lever at our disposal – simplification, flexibility, European preference, targeted support and innovation. Together, these measures are our commitment to restoring Europe’s industrial leadership while leading the global transition on climate.","extractDateDt":"2025-12-16T00:00:00.000+01:00","orderNb":2,"type":"TEXTEXTREA"},{"ky":88790,"author":{"ky":5773,"authorName":"Valdis Dombrovskis, Commissioner for Economy and Productivity; Implementation and Simplification","language":{"langCd":"EN"},"pictureUri":"https://ec.europa.eu/commission/presscorner/api/image/content/valdis-dombrovskis-cards-author-nms-120x120.png"},"extract":"Europe’s automotive sector has reached a crossroads. We need to act now to ensure it remains an integral part of Europe’s industrial future, not just its heritage. The targeted simplification initiatives contained in today’s Automotive Omnibus are an important first step. We are determined to stay the course, continue our engagement and provide our automotive industry with the simple, clear, supportive, and predictable rules it needs to thrive.","extractDateDt":"2025-12-16T00:00:00.000+01:00","orderNb":3,"type":"TEXTEXTREA"},{"ky":88791,"author":{"ky":5776,"authorName":"Wopke Hoekstra, Commissioner for Climate, Net Zero and Clean Growth","language":{"langCd":"EN"},"pictureUri":"https://ec.europa.eu/commission/presscorner/api/image/content/wopke-hoekstra-cards-author-nms-120x120.png"},"extract":"We want our industries to be the leaders of the transition to a low-carbon economy because that is what is best for our climate, competitiveness and independence. Today, we are stepping in to ensure a successful clean future for the automotive sector. We are introducing flexibilities for manufacturers, and in turn this will have to be compensated with low-carbon steel and the use of sustainable fuels to drive down emissions. We maintain investment predictability in the electric sector, drive down emissions and stay on track for climate neutrality by 2050.","extractDateDt":"2025-12-16T00:00:00.000+01:00","orderNb":4,"type":"TEXTEXTREA"},{"ky":88792,"author":{"ky":5789,"authorName":"Apostolos Tzitzikostas, Commissioner for Sustainable Transport and Tourism","language":{"langCd":"EN"},"pictureUri":"https://ec.europa.eu/commission/presscorner/api/image/content/apostolos-tzitzikostas-cards-author-nms-120x120.png"},"extract":"Europe’s automotive industry is a cornerstone of our economy, contributing 7% to EU GDP and supporting nearly 14 million jobs. With today’s Automotive Package, we are strengthening the sector’s competitiveness introducing flexibility into the CO₂ standards for cars and vans and a technology neutral framework. 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