The European Commission has unveiled the Automotive Action Plan – a package of strategic measures to help the European car industry compete globally and cope with the biggest revolution in transport since the invention of the steam engine. The plan includes boosting battery production and building charging infrastructure, accelerating the deployment of autonomous vehicles, regulating company fleets and protecting the European market from unfair competition. The industry is undergoing a profound transformation – innovation, electrification, digitalisation and autonomous driving technologies are in stark contrast to the way traditional European car companies have operated until now. Slovakia, if it wants to maintain its position as an automotive power, must be an active player in the implementation of this plan, because the future of our industry and the entire economy depends on its success. The AAP can be a huge opportunity for our country.
The automotive sector is a key driver not only of the Slovak economy, but of European prosperity in general. “It contributes around €1 trillion to the European Union’s GDP and provides direct and indirect employment for 13 million Europeans. In addition, it represents a significant part of private investment in research and development,” says Patrik Križanský, Director of the Slovak Association for Electromobility, assessing the position of the automotive industry on the old continent. The AAP is part of the Clean Industrial Deal initiative , aimed at promoting the competitiveness, resilience and decarbonisation of European industry, with a focus on energy-intensive industries and clean technologies.
So what measures has the Commission prepared to “oil” the engine of the European economy?
- programmes to increase demand for electric vehicles;
- encouraging the production of batteries in the EU and their subsequent recycling;
- improving the availability of charging infrastructure, prioritising operators’ access to electricity distribution networks;
- faster implementation of autonomous (self-driving) cars;
- measures to accelerate the adoption of EVs in company fleets;
- gradually increasing requirements for “local” battery and EV composition to encourage domestic production in the EU;
- and more…

Changes to the assessment of emission limits
“Perhaps the most resonant of the Action Plan, however, will be the changes to emissions rules and, in particular, the billion-dollar fines that carmakers were already facing at the end of this year,” comments Križanský. “Nothing changes in the maximum fleet emission targets of each car company with a gradual reduction every five years. It is still the case that in 2025 each car company has to reduce these emissions by a further 15% and thus gradually move towards zero emissions in 2035. However, the Commission has dealt with the enormous pressure from manufacturers in a somewhat charmless way – the emission limits remain in place at their original level, but compliance will not be evaluated after the end of the year, but cumulatively over the three-year cycle 2025-27.”
In practice, this gives carmakers greater flexibility to make up any shortfall in this year’s limits by selling more low-emission vehicles in the following two years. “The electrification of transport in Europe will slow down slightly because carmakers will have three years of flexibility to meet their overall emissions targets,” says the SEVA director, adding: “We look at this adjustment pragmatically and assess it with an understanding of today’s economic and political situation. It’s a better alternative than revisiting the emissions targets from the ground up.
It will give manufacturers more time to introduce more attractive and affordable models to the European public. They have already started selling a number of smaller and medium-sized electric models and more will come to market this year and next. “As with the tariffs on Chinese EVs, the Commission is buying the European car sector additional time, but not much – two to three years at most. It is a period during which the whole sector has to really get busy, innovate, streamline production, supply and logistics chains, think and act big,” Križanský said.
“For Slovakia, the AAP can become a huge opportunity. Billions of euros will be allocated to support the battery industry in the Battery Booster programme. Localisation of battery production will be a key criterion for EU support,” explains Križanský.
AAP highlights
In human terms on the details of the proposal. For details, see the official European Commission document.
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The European Commission will work with Member States to evaluate the best ways to support the purchase of electric vehicles, including by expanding the financing options available.
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Developing a social leasing model for electric cars for so-called transport-poor consumers, which has been a great success with French consumers.
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The Commission will propose to Member States that zero-emission vehicles be exempted from road charges.
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The Commission plans to end tax advantages for company cars powered by petrol or diesel. The move is intended to encourage companies to switch to zero-emission vehicles.
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Promoting tools to retain jobs, retrain workers and strengthen skills in the sector.
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Pursue free trade agreements and promote the unification of technical standards at global level.
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Use anti-dumping measures and instruments to protect against foreign subsidies.
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Design conditions for foreign investment (e.g. joint ventures, technology and IP transfer) to increase their added value.
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By the end of 2025, the Commission will propose legislation to decarbonise corporate fleets. Large companies with fleets of more than 100 vehicles should buy only zero-emission vehicles from 2030. This could bring nearly 7 million affordable EVs to the used car market for private buyers by 2035.
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Support for software-defined vehicles, autonomous driving using artificial intelligence and interconnection of vehicles with each other, with the transport infrastructure (traffic lights, sensors in the road) and with the network (updates, diagnostics).
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Plan to open at least three large cross-border test zones for pilot deployment of autonomous technologies.
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Harmonisation of rules for vehicle approval and testing (e.g. for automated parking systems).
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Investing in next-gen batteries and building domestic production of components, with a focus on reducing dependence on foreign supplies through instruments such as Horizon Europe and TechEU.
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Rethinking the risks associated with vehicle cyber-security and legislative measures to ensure transparent access to vehicle data.
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Promoting the transition to zero emissions also for heavy duty vehicles (eHDVs), including the amendment of the Eurovignette Regulation and the revision of the Weights and Dimensions Directive.
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Accelerating the construction of charging stations through technical support and funding.
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Removing barriers to connecting charging stations to the electricity grid, including recommendations to shorten permitting procedures.
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Developing infrastructure for heavy goods vehicles through the European Clean Transport Corridor initiative and promoting smart two-way charging (V2G).
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A list of strategic projects for the production and processing of battery raw materials will be presented through the Critical Raw Materials Regulation (CRMA) with facilitated permitting procedures and funding support.
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Establishing a Critical Raw Materials Centre in 2026 and promoting co-investment across the value chain.
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Promoting the recycling of batteries and other automotive components.
The European Commission has also prepared a Q&A on the AAP.