European Vehicle Definition Debate Gains Momentum as CLEPA Defends EU Manufacturing Framework

On June 17, CLEPA called on the European Parliament and Council to preserve the European vehicle definition proposed by the European Commission within the Industrial Accelerator Act (IAA). The association emphasized that a stable policy framework is necessary to encourage domestic vehicle manufacturing, reinforce industrial capabilities, and support long-term competitiveness across the region’s automotive ecosystem. According to the organization, maintaining the existing approach would help strengthen local production while providing certainty for manufacturers and suppliers operating throughout European Union markets.

Industry Concerns Over Proposed Changes

The association expressed concern that modifications to the methodology used for calculating vehicle eligibility could weaken incentives for companies to source and manufacture components within Europe. Such changes, it argued, may reduce the attractiveness of local production activities and could ultimately affect investment decisions across the automotive value chain. By preserving existing criteria, policymakers can continue encouraging regional sourcing and support the development of critical industrial capabilities required for future mobility technologies.

Growing Import Pressure on the Automotive Supply Chain

CLEPA highlighted increasing competitive pressure from imported automotive components. Imports of automotive parts from China into the EU reached EUR 8.2 billion in 2025, illustrating the scale of international competition faced by suppliers in the region. The association stated that an uneven competitive environment could place significant strain on European manufacturers and suppliers, potentially impacting their ability to maintain production volumes, invest in innovation, and sustain industrial employment across multiple markets.

Potential Employment Impact

According to the association, the consequences of insufficient competitive safeguards could extend beyond supply chain challenges. CLEPA warned that the European automotive supply industry could lose as many as 350,000 jobs by 2030 if fair competition is not maintained. The organization views industrial policy measures as a key tool for protecting skilled employment while ensuring that the automotive sector remains capable of supporting economic growth and technological development throughout the region.

Call for Stronger Industrial and Supply Chain Support

CLEPA urged policymakers to ensure that the Industrial Accelerator Act provides meaningful support to automotive component manufacturers while addressing the impact of heavily subsidized imports from outside the region. The association also advocated stronger measures aimed at reinforcing battery and electric vehicle supply chains. In its view, broader policy actions are required to improve industrial competitiveness, secure strategic technologies, and preserve Europe’s position as a major automotive manufacturing hub in the years ahead.

Frequently Asked Questions

Why is CLEPA supporting the current approach under the Industrial Accelerator Act?
CLEPA believes the existing framework helps encourage vehicle and component production within Europe while supporting industrial competitiveness. The association argues that maintaining the current methodology provides stronger incentives for regional sourcing, protects critical automotive technologies, and supports manufacturing employment. It also believes that policy stability is important for long-term investment decisions across the automotive supply chain, helping companies plan future production, innovation, and capacity expansion activities with greater confidence.

What risks does CLEPA associate with increasing automotive component imports?
CLEPA warns that growing imports, particularly from heavily subsidized sources, could create competitive imbalances for European suppliers. The association stated that without fair competition, manufacturers may face mounting pressure on costs, investments, and production activities. It also cautioned that these challenges could contribute to substantial job losses across the automotive supply industry by 2030. Strengthening supply chains, supporting local production, and improving competitiveness are viewed as important measures for addressing these risks.