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5 Key Takeaways From The First Strategic Dialogue Meeting On Challenges Facing The Auto Sector

Brussels, 12 February 2025 – The first Strategic Dialogue meeting on decarbonisation has raised urgent concerns about lagging infrastructure and limited technological options, highlighting the need for practical solutions to achieve climate-neutral targets. As the adoption of electric vehicles (EVs) continues to slow, Europe’s automotive industry is under increasing pressure to maintain its global competitiveness.

Key concerns highlighted at First Strategic Dialogue Meeting

The European automotive sector is going through a challenging period, struggling to meet regulatory CO2 targets while facing a competitive disadvantage in the global market. During the first Strategic Dialogue meeting, key industry players, including automakers and suppliers, gathered to propose effective measures to address infrastructure deficiencies and accelerate the transition to zero-emission vehicles.

Despite ongoing progress, the deployment of charging and refuelling stations remains insufficient. Worryingly, almost 60% of all charging points are concentrated in just three countries, leaving significant gaps across Europe. The situation is even more dire for heavy-duty vehicles, where the availability of charging and refuelling stations is minimal. Industry leaders emphasised that achieving climate goals will become increasingly difficult without substantial improvements in infrastructure.

The need for market-driven policies

Automakers are urging policymakers to move towards market-driven policies rather than penalty-based approaches. “If the EU wants to increase zero-emission demand, it needs a penalty-driven policy, not a market-driven one,” stressed Sigrid de Vries, director general of the European Automobile Manufacturers Association (ACEA). The industry is demanding immediate relief from stringent CO2 penalties and a thorough revision of the EU Alternative Fuels Infrastructure Regulation, which currently does not meet the industry’s needs.

Solving electrification challenges

Industry experts emphasize that electrification must be supported through strategic policies. Charging infrastructure and incentives for EV purchases are important tools, but a more comprehensive strategy is needed to ensure that solutions are tailored to consumer needs while reducing emissions. Benjamin Krieger, Secretary General of the European Automotive Suppliers Association (CLEPA), stressed, “We need a bold strategy to ensure that Europe develops supply chains for electric mobility and sustainable renewable fuels. Without this, we risk limiting viable pathways to climate neutrality.”

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Call for incentives and infrastructure expansion

To boost EV adoption, automakers are advocating for national and pan-European purchase incentives. A well-structured incentive program would make EVs more accessible to consumers, accelerating the transition from conventional fuel-powered vehicles. Additionally, the industry is pushing for improvements in the charging station network to effectively meet the growing demand.

Ensuring a technology-neutral approach

Industry leaders argue that the path to climate neutrality should encompass multiple technologies rather than focusing exclusively on battery-electric solutions. Innovations in hydrogen fuel cells and sustainable renewable fuels should be considered as viable options in decarbonization efforts. This approach will leverage Europe’s engineering expertise to develop a competitive, future-ready automotive sector.

Conclusion

The first Strategic Dialogue meeting underscored the urgent need for infrastructure expansion, policy reforms and technology diversification to keep Europe’s auto industry on a path to sustainability and global leadership. Moving forward, industry stakeholders and policymakers should work collaboratively to implement solutions that are both practical and effective in achieving long-term climate goals.

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