The European Association of Automobile Manufacturers (ACEA) once again sent an official appeal to the European Parliament and the member states, in which they ask for the adjustment of the current “automotive package” of regulations. At a meeting of the Committee on Light Vehicles, industry leaders pointed out that current conditions, characterized by fragile supply chains and growing protectionism, have become a serious threat to European leadership in the sector. Although the industry remains committed to decarbonization, it was emphasized that the current proposals for flexibility are not sufficient for transformation in real market circumstances.
Ola Källeniuspresident of ACEA and CEO of Mercedes-Benz, warned that Europe risks losing its status as an attractive location for investments and industrial production. According to him, it is necessary to find a better way to synchronize climate ambitions with business reality in order to protect jobs and innovation. He emphasized that producers need a sustainable market even after 2030, which the current regulatory framework does not fully guarantee.
Market challenges
The main stumbling block is the goal for 2030. If the battery electric vehicle market does not triple in the next four years, manufacturers face huge financial penalties. ACEA therefore proposes extending the period for calculating average emissions from three to five years (for the period from 2028 to 2032) and expanding the list of compensation mechanisms that would not be limited to small models or vehicles manufactured exclusively within the European Union.
The situation is particularly critical in the market of delivery vehicles (vans), where overall sales figures are in decline, and the share of electric and hybrid models barely exceeds 10%. This is why manufacturers believe that the current targets of 35% reduction in emissions by 2030 and 80% by 2035 are unachievable without greater flexibility.
Despite large investments and the introduction of more than 300 models of electrified cars during 2025, the latest data show a slowdown in the market. In January 2026, new car registrations in the EU fell by 3.9% compared to the same month last year. Although electric vehicles recorded a slight increase in market share to 19.3%, hybrid models remain the first choice of European consumers with a share of 38.6%. In light commercial vehicles, the diesel engine still dominates with more than 80% share.
Forecasts for the future have been significantly revised downwards compared to earlier estimates. While in November 2024 it was predicted that electric vehicles would hold 69% of the market by 2030, new estimates drop that share to only 37.9%. ACEA concludes that regulatory simplification must continue, expressing concern over the announced European Industrial Acceleration Act, which could bring new costs and further increase vehicle prices, rather than strengthening the resilience of the automotive sector.