The European automotive industry says it is worried about the upcoming CO2 emission targets set by EU regulation amid the stagnation in the EV market and competitiveness erosion.

Trade body ACEA warns automakers fear they will not meet the CO2 emission reduction targets for light-duty vehicles and be penalised, despite having invested billions in electrification.

“As was bluntly put by Mario Draghi in his Competitiveness Report: ‘the automotive sector is a key example of lack of EU planning, applying a climate policy without an industrial policy’,” ACEA says in a statement.

It argues that the transition to zero emissions is “highly challenging” because the EU is still missing “crucial conditions” for mass adoption of zero-emission cars and vans. It lists charging and hydrogen refilling infrastructure; a competitive manufacturing environment; affordable green energy; purchase and tax incentives; and a secure supply of raw materials, hydrogen and batteries.

“This ambitious transition cannot be done by the industry alone anywhere in the world, and even less so in the absence of consistent policy measures to maintain the competitiveness of the automotive sector,” ACEA adds calling for a “more manageable” transition.

The trade body is once again urging authorities to carry out a “substantive and holistic review” of the CO2 regulation, assessing real-world progress against the ambition level, and to take action as appropriate. According to Bloomberg, ACEA is lobbying for a two-year delay of the 2025 target of 95 grams of CO2/km per vehicle.

Kallanish has contacted ACEA for comment.

ACEA president and Renault Group ceo Luca de Meo told French media on 7 September that the European Commission should give automakers “a little flexibility.”

“According to our calculations, if EV production remains at today’s level, the European industry may have to pay €15 billion ($16.63 billion) in fines or give up production of more than 2.5 million [ICE] units,” he said.