The European automotive industry could return to producing 16.8 million vehicles per year if the European Union (EU) maintains its goal of ending pollutant emissions from combustion engine vehicles by 2035.
This conclusion comes from a study published by “Transport & Environment” and reviewed by three industrial associations, which emphasizes the importance of achieving the targets set for 2035 by the European Union regarding pollutant emissions.
On the other hand, the strong pressures from the automotive sector for Brussels to find relief from the stringent pollutant emission standards and not to implement any industrial strategy could result, according to the study, in the loss of 1 million jobs in the automotive industry and two-thirds of the planned investments in batteries for electric vehicles, as stated by Transport & Environment in a statement.
Furthermore, the study indicates that if the emission targets are maintained, along with policies to boost domestic production of electric vehicles, the contribution of the automotive value chain to the European economy is expected to grow by 11% by 2035.
The European automotive sector is facing significant challenges, pressured by high raw material costs, as well as competition from Chinese brands, and now by the 25% tariffs imposed by U.S. President Donald Trump on automobile imports, which has led many manufacturers to lower their forecasts for 2025.
For now, the automotive sector has managed to get the European Parliament to support the relaxation of some of the EU’s CO2 emission targets for light and commercial vehicles, despite Brussels not having backed down on the regulations that will prohibit the sale of new vehicles powered by fossil fuels by 2035.
The study now released warns the European Union that this “is a decisive moment for the automotive industry in Europe, as the global competition to lead the production of electric vehicles, batteries, and chargers is immense”.
