recently,According to reports, the European Commission plans to introduce new regulations that require electric vehicles to contain 70% of EU local components before they can receive government subsidies.The proposal will be included in the "Industrial Acceleration Act", a move aimed at protecting the EU's local manufacturing base and responding to the pressure from China's low-priced electric vehicle imports.
The draft stipulates thatElectric vehicles, hybrid vehicles and hydrogen fuel cell vehicles that enjoy government car purchase subsidies or are owned or leased by public institutions must be assembled in the EU.
In terms of value, at least 70% of components other than batteries must be produced in the EU, and some core components of batteries must also be produced in the EU.(The current threshold value of 70% has not yet been finalized, and there is still room for adjustment).
The European Commission has proposed to develop local content rules for the electric vehicle value chain in 2025.The first phase of the "Battery Boost Fund" of 1.8 billion euros has also been established to support the construction of local battery super factories.
At present, most EU car companies still rely on Chinese and Korean suppliers for their battery packs. ACC, a battery company jointly owned by Stellantis and Mercedes, has recently scaled back its plans to build a super factory in the EU.
As of November 2025, Chinese automobile manufacturers account for 12.8% of the EU market.The EU industry is also worried that Chinese car companies may evade tariffs by assembling parts in EU factories.
Organizations such as CLEPA, the European Automobile Suppliers Association, have called for the strengthening of local content rules. They believe that the proportion of local parts in existing EU-assembled cars reaches 75%-80%. The new regulations should maintain this status quo and clarify the definition of "Made in Europe".
