The European Commission presented on 16 December 2025 the Automotive Package to support the sector’s efforts in the transition to clean, competitive, and resilient 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 the EU industry to simplify rules.
The Package combines regulatory flexibility, targeted investment, and simplification to ensure climate neutrality by 2050 while safeguarding Europe’s industrial leadership and strategic autonomy.
Building on the Clean Industrial Deal and the Competitiveness Compass, the initiative responds directly to industry calls for pragmatic implementation, reduced administrative burden and stronger EU-based value chains.
Highlights from the Automotive Package
Staying the course towards clean mobility – with pragmatism
The Commission maintains a strong market signal towards zero-emission vehicles (ZEVs) while introducing targeted flexibilities for manufacturers:
- Revised CO₂ standards for cars and vans, with additional flexibility mechanisms (banking & borrowing for 2030–2032) and a reduced 2030 target for vans (from 50% to 40%).
- A targeted amendment for heavy-duty vehicles, easing compliance with 2030 CO₂ targets.
- From 2035, a 90% tailpipe emissions reduction target for cars, with the remaining 10% compensated via low-carbon steel made in the EU or e-fuels and biofuels, allowing a continued role for plug-in hybrids, range extenders and other technologies alongside EVs and hydrogen.
- Super-credits for small, affordable electric cars made in the EU, incentivising market uptake before 2035.
Stimulating demand through corporate fleets
On the demand side, the Package introduces a corporate vehicles initiative:
- Binding national targets to accelerate the uptake of zero- and low-emission vehicles in large corporate fleets.
- Stronger second-hand markets for clean vehicles, benefiting consumers and SMEs.
- Zero- or low-emission and “Made in the EU” vehicles become a prerequisite for public financial support.
Strengthening Europe’s battery value chain
To secure Europe’s technological and industrial base:
- A €1.8 billion Battery Booster, including €1.5 billion in interest-free loans, to support EU battery cell manufacturing.
- Measures to foster innovation, investment, and coordination across Member States, strengthening supply security and reducing dependence on dominant global players.
Cutting red tape and lowering costs
The Automotive Omnibus delivers significant simplification:
- An estimated cost savings of around €706 million per year for the automotive industry.
- Streamlined testing procedures for vans and trucks, while maintaining high safety and environmental standards.
- A new vehicle category for small, affordable electric cars (up to 4.2 m), enabling targeted incentives at the local and national level.
- Updated car labelling rules, empowering consumers with clearer information on fuel efficiency and CO₂ emissions for new and second-hand vehicles.
Why this matters for Europe
According to Commission President Ursula von der Leyen, the Package brings together innovation, clean mobility, and competitiveness at a moment when technological change and geopolitics are reshaping global competition. The measures aim to:
- Reinforce Europe’s industrial leadership and strategic independence.
- Reduce emissions and fossil fuel dependence in road transport.
- Support jobs, growth, and investment across the automotive and mobility ecosystem.
- Ensure a fair and predictable transition for industry and consumers alike.
What this means for ERTICO Partners
ERTICO will continue to monitor the legislative process closely and engage with the European Commission and stakeholders to ensure that partners are well-positioned to benefit from the implementation of the Automotive Package.
- Greater regulatory clarity and flexibility, supporting long-term investment planning.
- New opportunities for clean and connected mobility solutions, particularly in fleet management, electrification, data-enabled services, and vehicle–infrastructure integration.
- Stronger EU-based supply chains, notably in batteries and low-carbon materials.
- Accelerated deployment of zero- and low-emission vehicles, reinforcing the Single Market and cross-border interoperability.
- Strong alignment with ERTICO’s mission to advance smart, sustainable, and inclusive mobility, including ITS, digitalisation and AI-enabled transport systems.
Source: European Commission