European commissioners will meet auto stakeholders next Thursday to discuss the future of the industry, and potential EU-level purchase incentives for EVs.

Next week, Brussels will also reveal a separate roadmap to ensure the bloc’s competitiveness over the upcoming five years, Kallanish notes.

Officials say the launch of a “strategic dialogue” on 30 January reflects the European Commission’s recognition of the “urgent need for action to protect the European automotive industry and give it a future within the European Union.”

“One of the most critical near- and mid-term challenges for the industry is the transition to clean mobility,” a meeting document states. “Domestically, the EU has set ambitious climate goals, but consumers are confronted with still higher upfront costs of vehicles and lower roll-out speed of charging infrastructure.”

Under planned discussions on demand stimulation, the EC says stakeholders could explore measures such as “enhancing and harmonising purchase incentives and fiscal measures across member states, or public procurement/lead markets.”

EC vice president Teresa Ribera says Europe needs to work on building EU champions rather than national champions.  She believes it “makes sense” to explore a pan-European approach to facilitate incentives instead of national subsidies.

“What we need are pragmatic solutions, not ideological ones,” German chancellor Olaf Scholz said earlier, also at Davos 2025. “And that is why I am delighted that the president of the commission has now taken up my proposal for harmonised Europe-wide purchase premiums for e-cars… E-mobility is the future, there’s no doubt about that. Anyone who suggests otherwise is damaging our industry.”

Chris Heron, secretary general of Europe’s electric vehicle association AVERE believes Europe’s top 2025 priority must be “smarter incentives” to encourage electric car sales. “We won’t have a problem with automaker fines if we get enough cars sold first,” he notes.

“We welcome the EU’s evaluation of how it can stimulate demand in a smart way, but member states will continue to bear the most responsibility for supporting their domestic markets,” adds Heron. “All member states have agreed to the EU’s 2035 target, but it’s frustrating that not every government is prioritising electric car sales ahead of a critical year.”

The trade body hopes to see an “EU-wide demand push” in the next six months.

Germany’s early termination of EV subsidies had a damaging effect on all-electric adoption both in the country and in the EU last year. Data from automotive trade body ACEA shows German BEV registration dropped 27.4% in 2024, leading to a 5.9% volume decline in the bloc. With 1.44 million new BEVs sold last year in the EU, the powertrain remained the third-most-popular choice for buyers with a 13.6% market share.