A major industry conference in Brussels on Friday has highlighted the strong strategic emphasis on electric vehicles across Europe.
"Regardless of the circumstances, the future lies in electricity," a source familiar with the discussions between EU Commission President Ursula von der Leyen and leading figures from the automotive industry stated.
"The industry is very conscious of the necessity to shift," the individual who wished to remain anonymous added.
Entering the meeting, European automobile producers requested more adaptability in enforcing CO2 emission targets.
"But even if the Commission removed these targets, global competition would still establish them for the industry," the individual stated.
Brussels is aiming to achieve carbon neutrality by 2050 and has, among other initiatives, chosen to ban the sale of new combustion engine vehicles by 2035.
During Friday's discussions, the Commission appeared resistant to altering the 2035 objectives, even with recent appeals from the business and political sectors advocating a shift from this target.
Audi's CEO Gernot Döllner stated to German magazine Wirtschaftswoche that he is unaware of any more effective technology than the electric vehicle for promoting CO2 reduction in transportation over the next few years.
Rather than highlighting these benefits, fresh discussions on maintaining the internal combustion engine keep arising – "this is unhelpful and causes confusion among buyers," he remarked.
A comparable perspective was expressed by Michiel Langezaal, CEO of Fastned and president of ChargeUp Europe, who was involved in the discussions with von der Leyen.
"Making sure Europe can take the lead in the global shift to electric mobility goes beyond simply following a strong plan. It demands that the industry shows the bravery to tackle the challenges we encounter with a mindset focused on growth and to concentrate on the necessary steps to ensure the transition to e-mobility benefits people, businesses, and the environment," he stated.
The Commission organized a three-hour meeting as part of the "Strategic Dialogue" aimed at discussing the future of the automotive industry and tackling the present challenges. This marked the third such gathering since the start of the year.
The automotive industry on the continent has suffered significant setbacks, facing declining sales, elevated energy costs, increasing subsidized competition from China, and a challenging trade climate caused by US punitive tariffs.
In April, EU industry head Stéphane Séjourné had referred to the sector as being "in critical peril".
"There is a possibility that the future layout of the global automobile sector will be determined without Europe's involvement," Séjourné stated.
One of the major hurdles continues to be the execution of the European climate policy.
"In the EU-27, battery electric passenger cars accounted for 15.6% of the market, while vans stood at 9%. Mass-market adoption is still not widespread. This will not change unless we accelerate infrastructure development and reduce the overall cost of ownership," said Sigrid de Vries, director general of the European Automobile Manufacturers' Association (ACEA).
"But governments and regulatory bodies have not provided adequate investment in, or required, sufficient infrastructure development and grid improvements, with incentives remaining uneven. The result: the regulatory goals are no longer attainable," she remarked.
To make zero-emission vehicles a clear preference for both consumers and companies, automobile manufacturers think that owning or operating such vehicles should be more appealing compared to those powered by internal combustion engines.
This necessitates ongoing purchase incentives, more equitable tax policies, reduced charging expenses, and improved access to urban areas.
At the same time, Europe needs to speed up the development of charging and refuelling facilities, particularly for large vehicles, while upgrading power grids and restructuring energy markets to reduce electricity costs – this is one of the main requests from the industry.
The car manufacturing sector, a vital part of the European economy, provides employment for more than 13 million individuals (including both direct and indirect positions) and accounts for roughly 7% of the EU's gross domestic product.