The European automotive sector faces enormous challenges due to new emissions regulations.

The automotive sector in Europe is facing a significant change starting January 1, 2025, with the entry into force of the CO2 emissions reduction regulation established by Regulation (EU) 2019/631. This regulation sets ambitious targets that vehicle manufacturers must meet to avoid significant penalties. These targets stipulate that, by 2025, the average emissions of new passenger cars must not exceed 93.6 g CO2/km, and light commercial vehicles must be limited to 153.9 g CO2/km. Starting in 2030, the requirements become even stricter, aiming for a drastic reduction that will culminate in a ban on combustion engines by 2035. To avoid economic penalties that could amount to millions of euros, manufacturers will need to quickly adapt to these regulations. According to calculations by Faconauto, the association of Spanish dealers, to meet these requirements, the penetration of pure electric cars would need to reach approximately 25%, a figure considerably higher than the current 5%. This represents a monumental challenge, with about 236,000 electric vehicles needed compared to the 70,000 registrations forecasted for next year. Manufacturers face the complicated task of balancing their sales of combustion vehicles with the growing demand for electric cars. If they fail to increase sales of the latter, the only viable option will be to reduce the production of combustion cars, which could trigger a crisis in the sector. This need for adaptation impacts not only manufacturers but also has repercussions on the labor market and the economy in general, especially in a country like Spain, which is the second-largest vehicle manufacturer in Europe and the eighth largest worldwide. In light of this situation, the PPE Group in the European Parliament has presented a plan aimed at ensuring the competitiveness of the European automotive sector. This proposal has been well received by the European Automobile Manufacturers Association (ACEA), which advocates for a more flexible approach regarding the ban on combustion vehicles. The idea is to adopt a stance of technological neutrality that fosters innovation and allows manufacturers to adapt without facing severe penalties. The PPE Group argues that Europe must not lose sight of economic reality, as an overly rigid implementation of the new regulations could lead to many citizens being unable to afford a vehicle. It also warns about the potential loss of jobs in the sector, especially in the face of competition from markets like China, which could take advantage of the situation to attract European consumers. On the other hand, the President of the European Commission has launched a Strategic Dialogue on the future of the automotive industry, an initiative focused on proposing urgent measures to revitalize the sector. In Spain, attention is also directed towards the Sustainable Mobility Bill, which will require large companies and public entities to establish sustainable mobility plans, prioritizing the use of electric and shared vehicles. This legislative project seeks to promote a shift towards active mobility but also raises questions about its implementation and the impact it could have on the automotive industry. Companies will face the obligation to adapt to these regulations within a period of 24 months, which could intensify the pressure on an already crisis-stricken sector. As the expiration date of the Moves III program approaches, which will end on December 31, 2024, the sector eagerly awaits the possible arrival of Moves IV. Both Anfac and Faconauto have demanded crucial changes to improve the efficiency of this program. Among their requests is the need for direct aid and the elimination of the taxation currently imposed on subsidies for the purchase of electric vehicles. The future of the automotive industry in Europe is uncertain, but it is clear that adapting to sustainability is an unavoidable path. As these new standards are established, both manufacturers and consumers will need to navigate a constantly evolving landscape, where innovation and environmental responsibility will play a central role in redefining mobility on the continent. The next decade will be crucial, not only for the automotive sector but also for the European economy as a whole.