VDA calls for faster action of EU Commission by bringing forward fleet regulation review

The demand for electromobility in Europe as a key contribution to achieving climate targets in transport is currently falling short of expectations. The Association of the Automotive Industry (VDA) is therefore calling for the review of fleet regulation for passenger cars and light commercial vehicles, planned by EU Commission als late as 2026, to be brought forward to 2025. The progress should be regularly reviewed politically after that and any necessary adjustments should be identified and made on this basis. The review of fleet regulation for heavy commercial vehicles, which is planned for 2027, should also be brought forward by one year to 2026.

The review is a process required by CO₂ fleet regulation, demanding a review and consideration of current developments in order to determine whether the objectives of the current regulation can actually be achieved - and where and to what extent specific adjustments or improvements may need to be made. The review process thus provides information on the status of the success factors necessary for the ramp-up.

VDA President Hildegard Müller explains: "Politics may set CO₂ reduction targets - in addition to the considerable efforts made by the automotive industry, the framework conditions necessary to achieve the targets are crucial: Our innovations and investments can only have maximum impact if the environment is right, if competitiveness and location attractiveness are growth accelerators and not so low that they impede growth, and if the necessary infrastructure conditions are created. Climate protection can only succeed with and not against consumers."

Action must be taken now
Specifically, she explains: "Overall, we see that the gap between ambitious targets in fleet regulation and the supporting framework conditions is widening. We have repeatedly pointed this out and called for appropriate countermeasures.

Against this background, it is not enough - as the Commission is currently planning - to prepare the reviews in 2026 or 2027 and then perhaps only draw conclusions and make adjustments on their basis again one or two years later. We do not have that time. Instead, we must act consistently and continuously now," Müller said.

"The Commission must bring forward the reviews and initiate the long-known necessary steps for the successful ramp-up of electromobility as quickly as possible. This includes, in particular, significantly increasing the level of ambition in the expansion of the charging and H₂ refueling infrastructure, combined with accelerated network expansion. It is important to establish, monitor and, if necessary, make early adjustments to a strategically necessary advance expansion," Müller explains.

The Draghi report presented this week also clearly highlights the failures of politics in the transformation to e-mobility: "The push for rapid market penetration of e-vehicles in the EU was not followed by a synchronous push to change the supply chain," Draghi said. The report also makes recommendations for action to increase the competitiveness of the EU auto industry and accelerate the ramp-up of e-mobility, and recommends a deregulation offensive.

The VDA also calls for the attractiveness of the location to be adjusted and competitiveness to be increased: "We need competitive electricity prices, especially with regard to consumers and the costs of charging electric vehicles. In addition, the EU Commission must improve the external trade framework conditions to ensure a robust supply of raw materials and intermediate products, analyze possible risks and, in particular, rapidly expand the network of agreements and partnerships," Müller said.

Potential must be unleashed

She further emphasizes: "The EU Commission must finally fulfil its obligation and develop a concrete and technically feasible framework so that so-called carbon neutral fuels vehicles can be legally approved also after 2035. Only with a strategically well thought-out overall concept we can achieve climate-friendly growth that secures prosperity and convinces consumers accordingly.

In principle, all actors must be brought on board in order to achieve the climate goals. This also includes the necessary stronger addressing of the vehicle fleet by developing the potential of renewable fuels. Without this contribution, the climate goals in the transport sector will not be achieved. Here too, the pressure for corresponding investments must be increased, for example through a significantly higher GHG quota in RED III."

Despite all the challenges and problems, there is reason to be optimistic about the existing potential: "With the right, bold and strategically coordinated decisions, the existing potential can be unleashed: The German automotive industry has a high level of innovative power and its brands have a high international appeal. Now we finally have to move forward in terms of competitiveness and location attractiveness - so that this potential can continue to develop fully in Germany and Europe in the future and the climate-neutral mobility of the future becomes a reality. The automotive industry is ready with constructive suggestions," Müller encourages.