After a delayed release date and months of waiting, the Commission, on 16 December the European Commission unveiled its long-awaited Automotive Package – a set of proposals addressing vehicle CO₂ standards, corporate fleets, European battery production and regulatory simplification (the Automotive Omnibus).
The objective is clear: to support the transition to clean mobility while strengthening Europe’s industrial competitiveness. Yet one word stood out above all others in the Commission’s messaging: “flexibility”. Presented as a way to support industry, flexibility has become the guiding principle behind the revision of CO₂ emission standards.
But isn’t flexibility coming at the expense of long-term certainty? That’s what we unwrap in this week’s #FridayFeature.
What’s in the Automotive Package?
The Automotive Package brings together key initiatives addressing both the supply and demand sides of the automotive transition:
- A review of CO₂ emission standards for cars, vans and heavy-duty vehicle
- A proposal to accelerate the decarbonisation of corporate fleets via national targets
- A new Battery Booster, backed by €1.8 billion to support EU-made battery production
- An Automotive Omnibus aimed at reducing administrative costs and simplifying rules
Together, these measures aim at easing pressure on industry while keeping electrification firmly on the agenda.
Balancing flexibility and long-term certainty
A central element of the package is the revision of CO₂ emission standards.
Notably, the Commission proposes to reduce the 2035 CO₂ target for cars and vans from 100% to 90%, which would allow a continuous role for internal combustion engines, plug-in hybrids, mild hybrids and range extenders to remain on the market beyond 2035. The package also introduces:
- “Banking and borrowing” scheme for meeting the 2030 CO₂ target for cars and vans across 2030–2032
- A lower 2030 CO₂ reduction target for vans, reduced from 50% to 40%
While flexibility may ease compliance for manufacturers in the short term, it comes with its trade-offs. That’s because frequent changes to agreed targets risk undermining investment certainty that Europe’s automotive and electricity sectors need most.
As Eurelectric Secretary General Kristian Ruby puts it:
“Weakening the 2035 phase-out of combustion engine sales sends the wrong signal. And it’s problematic for the companies that have already poured billions into electric infrastructure. It’s essential to avoid further dilution in the ensuing political process”.
The global direction of travel is clear: road transport is electrifying. Hence, the real question is whether Europe sets the pace or slows itself down in the face of competition accelerating elsewhere.
What we see as positive signals
Despite the concerns outlined earlier, the package contains some promising elements.
Corporate fleets: unlocking demand at scale
The proposal to introduce national targets for zero- and low-emission vehicles in large corporate fleets has the potential to be a game changer. Corporate cars play a major role in the market because they:
- Represent around 60% of new vehicle registrations
- Cover higher mileages than private cars
- Quickly enter the second-hand market
If done right, this initiative can bolster demand for EVs and deliver targeted emissions reductions while supporting EU-made vehicles.
Strengthening Europe’s battery value chain
The €1.8 billion Battery Booster is a welcome step strengthening Europe’s industrial base. By supporting battery cell production in the EU, it helps reduce dependency on dominant global players and strengthens the foundations of Europe’s EV ecosystem.
Cutting red tape
The Automotive Omnibus aims to reduce administrative burden and save manufacturers around €706 million per year. Moreover, simplifying rules can free up resources for innovation and decarbonisation – as long as it does not come at the expense of long-term policy clarity.
Why electrification still needs clear signals
One message cuts across all these initiatives: vehicle policy alone is not enough. Electrifying transport at scale requires:
- Clear and stable targets for manufacturers and investors
- Charging infrastructure deployed at scale across Europe
- Stronger electricity grids that can handle rising demand
As CO₂ targets are repeatedly adjusted, it creates uncertainty. As a result, this uncertainty risks slowing EV uptake, delaying grid investments and weaken Europe’s position as global competition on electrification intensifies. Clear and stable signals are key to unlocking investment.
What’s next?
The Automotive Package now moves into the legislative phase, with the European Parliament and the Council set to shape its final form. Eurelectric will continue engaging with policymakers to:
- Defend clear, long-term signals for electrification
- Support binding fleet electrification measures at the national level
- Ensure transport electrification goes hand in hand with power system readiness
This conversation will be at the heart of EVision 2026 – Fleet Forward, which will take place in March in Brussels. Here, Eurelectric will present a new report on electrifying corporate fleets and explore how transport and electricity systems can move forward together.
And with that, we wrap up our final #FridayFeature of the year. The series will be back after the Christmas holidays – refreshed, recharged and ready to unpack the policy debates shaping Europe’s energy and mobility transition in 2026.
This blog post was originally published as part of Eurelectric’s LinkedIn Friday Features. Subscribe here to stay updated and never miss an edition.
Disclaimer: This article is for communication purposes only and may not reflect Eurelectric positions. Any positions taken in this article shall not be attributable to Eurelectric’s official positioning. Official Eurelectric positions are reflected only in position papers published here.