The European Union’s new measure for the automotive sector, introduced on 16 December, provides for renewed measures and standards compared to the 2023 regulation.

Although a clear step backwards compared to the past, will it finally be the help European producers need?

What is the automotive package?

Between the lines of the new regulatory package for the automotive sector we read that, starting in 2035, large manufacturers will have to reduce the emissions of newly registered vehicles by 90 per cent, instead of 100 per cent as was stipulated in the EU Regulation approved in 2023.

The remaining 10 per cent of emissions will have to be offset by the use of low-emission steel produced in the EU, or by electro- and biofuels.

Seeking Europe’s strategic independence by 2050, the €1.8 billion Battery Booster programme is also introduced, with the aim of creating a complete ‘Made in EU’ battery supply chain, fostering innovation, coordination between Member States and manufacturing resilience.

In any case, the measure is not yet law: the proposals are not of immediate application and will be subject to even substantial changes during the legislative process, which, as we know, is not immediate

An announced change of course

The previous regulation was considered by many to be unworkable and too optimistic.

Among the protesters, Italy and Germany were at the forefront, concerned that the already endangered automotive supply chain could sink further.

Countries such as France, Spain and Sweden, while supporting the previous decision, asked the EU to draw up plans that took more account of national needs.

All these considerations led Ursula von der Leyen to revise the Commission’s plans, providing for more flexibility and a still key role for fuel-powered cars.

The challenge to China

Another key factor can also be read in the automotive measure: the long-distance clash with the Chinese.

China is the world leader in car production, with figures of 31 million vehicles produced in the first 11 months of 2025.

The difference with Europe, with 12 million total registrations in 2025, is abysmal.

Chinese companies dominate for three main reasons: they manufacture their own lithium-ion batteries, which they also supply to Europe; they develop new models faster and with relatively low costs , thanks to shorter design cycles and economies of scale; and strong government policies have been adopted to support the car industry.

In Europe, the cost of labour, environmental regulation and safety standardisation is much higher.

Moreover, production on the old continent, often limited by high costs and red tape, still depends on battery imports, sometimes from China.

The Automotive Package, in particular with the Battery Booster, wants to narrow the gap with the competition; in concrete terms, however, the substance changes little. Suffice it to say that from 2009 to 2023, China spent around 230 billion dollars to support the electric vehicle and battery industry, 16 billion/year.

With the EUR 1.8 billion allocated by the EU for batteries, we will hardly be able to compete.

In a clearly unequal fight we must show ourselves to be strong and decisive; perhaps introducing a few more duties on Chinese imports might be a viable way forward. And who knows, maybe a few too many environmental concerns have also put us off.

Does the environment take second place?

While it is true that Europe cares a lot about the environment and supports zero-emission vehicles, there is one consideration: theEU produces about 6% of global emissions. China produces four times as much, about 25%. The US 11%, India 7%.

One may ask: how much does the announced measure affect global emissions?

The climate apparently seems to be smiling on us, but the data dampen enthusiasm. According to theEuropean Environment Agency, the transport sector is responsible for about a quarter of Europe’s total_CO2 emissions, 71.7 per cent of which come from road transport.

The new EU regulation would, in the short term, lead to a reduction of about 5% in EU emissions and about 0.3% reduction globally.

If, on the other hand, the Commission had stuck to its decision to reduce emissions from new vehicles by 100 per cent, the EU emission reduction would have risen to around 5.33 per cent, the global reduction to around 0.32 per cent.

As you can understand, to save the environment, Europe is not enough: the whole world cooperation is needed. The measure from Brussels is certainly more realistic than the previous one: for the climate the difference is minimal, while citizens will be able to continue to buy fuel-powered cars, still the most popular choice.

Possible developments: is there a future?

Europe has put flexibility, simplification and concrete aid on the table: will this be enough?

In a world where China seems to be unreachable, Europe can no longer make any missteps. In two years too many different decisions have been taken, which only weaken all European manufacturers.

The uncertainty coming from political signals undermines the already accomplished long-term investments and makes Europe less attractive for future investments.

Even the simplifications introduced, while aiming to help producers and support the environment, in reality only add to an already complex administrative and bureaucratic framework.

What has been done so far is not enough: we need to deploy commitment and resources, but above all we need unity, first and foremost in breaking down the famous ‘internal tariffs’ evoked by the Draghi Report. For a leading and fully competitive Europe in the sector, which we cannot afford to leave to the competition of the Dragon.