According to ACEA, the European automotive sector faces significant challenges in meeting the 2030 and 2035 CO2-reduction targets for light-duty vehicles. With the current battery-electric vehicle (BEV) market share at less than 16% for passenger cars and under 9% for vans, the association argues that a pragmatic, flexible, and technology-neutral approach is urgently needed to accelerate the transition while safeguarding investments and jobs in the European Union.

ACEA highlights that the electrification of transport is progressing, but the pace is slower than the zero-emission tailpipe targets require. While automakers remain fully committed to achieving climate neutrality by 2050, the ecosystem needed to support widespread EV adoption—including infrastructure, consumer incentives, and battery value chain development—cannot yet keep up with regulatory ambitions.

The association stresses the need for a recalibration of post-2035 regulations around three pillars:

1. Strengthening enabling conditions for electrification – Revising CO2 regulations alone will not decarbonise road transport. ACEA calls for stronger infrastructure targets, grid investments, regulatory reforms for vehicle-to-grid integration, and sustained demand incentives to make EVs practical and economically attractive for consumers.

2. Linking decarbonisation to competitiveness and resilience – ACEA emphasises a tailored approach to vans, a segment critical for small businesses. Current targets risk imposing disproportionate costs, especially given higher ownership costs, reduced payload for battery-electric vans, and insufficient fast-charging infrastructure. Flexible mechanisms, such as a five-year averaging period and adjusted 2030 targets for vans, are needed to allow manufacturers to reinvest in the transformation.

3. Technology neutrality – ACEA advocates for allowing all viable drivetrain technologies, including plug-in hybrids, range extenders, and hydrogen fuel-cell vehicles, to contribute to emissions reductions. Any additional emissions from a small share of non-BEV vehicles could be offset through measures such as accelerated car parc renewal, higher shares of decarbonised fuels, low-carbon materials in vehicle manufacturing, or carbon removals.

According to ACEA, achieving the EU’s climate goals requires a realistic, holistic strategy that goes beyond simple tailpipe regulations. The association calls for a European automotive policy that balances decarbonisation with competitiveness, resilience, and the practical realities of the market.