Log in
Search
Automotive Action Plan
In March 2025, after the release of the Clean Industrial Deal, the European Commission published its Industrial Action Plan for the European automotive sector. It outlines the Commission's strategy to support the automotive industry through its transition to zero-emission, connected, and increasingly automated vehicles.
The plan emphasises the importance of the automotive industry to Europe's economy, accounting for €1 trillion in GDP and providing employment to 13 million Europeans. It addresses five key areas:
- Innovation and Digitalisation: Promoting autonomous driving, establishing large-scale cross-border testbeds, and developing a European Connected and Autonomous Vehicle Alliance.
- Clean Mobility: Reducing transport emissions by 90% by 2050, supporting social leasing schemes for zero-emission vehicles, accelerating the uptake of zero-emission vehicles in corporate fleets, and delivering on enabling conditions for zero-emission mobility, such as the deployment of alternative fuels refuelling and recharging infrastructure.
- Competitiveness and Supply Chain Resilience: Enhancing battery manufacturing, securing access to raw materials, and boosting circularity in the automotive supply chain.
- Skills and Social Dimension: Addressing employment challenges, skills shortages, and supporting workers through initiatives like the European Fair Transition Observatory.
- Level Playing Field and Business Environment: Ensuring market access, diversifying sourcing, and simplifying regulatory frameworks.
The plan includes flagship actions such as establishing the European Connected and Autonomous Vehicle Alliance, amending CO2 emission standards, and supporting battery manufacturing under the Innovation Fund. The Commission will work closely with stakeholders to monitor and implement these measures.
What’s in it for hydrogen?
The Industrial Action Plan for the European automotive sector includes several hydrogen-related items aimed at supporting the transition to clean mobility and enhancing the competitiveness of the automotive industry. It aimed to achieve this through a number of measures:
- Hydrogen Refuelling Infrastructure: The Alternative Fuels Infrastructure Facility (AFIF) will provide EUR 570 million for projects focused on the rollout of hydrogen refuelling infrastructure in 2025 and 2026, with a particular emphasis on heavy-duty vehicles. In 2025, 39 projects have already been funded in Europe for EUR 422 million. In November 2025, the European Commission announced the cancellation of AFIF third call due to the exhaustion of funds. European Commission officials confirmed in March 2026 that a small third call would be coming by the end of 2026 thanks to previously allocated resources that have eventually not been used.
- A legislative initiative on Corporate Fleets, presented by the European Commission in December 2025 as part of the Automotive Package. The scope of the initiative is limited to light-duty vehicles while a specific proposal on heavy-duty vehicles is expected by the end of 2026 or beginning of 2027. The finalisation of interinstitutional negotiations on the revision of the Weights and Dimensions Directive, which would grant hydrogen heavy-duty vehicles extra payload to compensate for the heavier drivetrain. As of May 2026, interinstitutional negotiations are still ongoing.
- The Sustainable Transport Investment Plan, adopted in November 2025, includes actions to remove barriers to scale-up the financing primarily in the aviation and the maritime sector; road transport is not explicitly covered by the Strategy. The Commission will support the development of a Regulation in the framework of the UNECE on the retrofitting of conventional heavy-duty vehicles, harmonising the type-approval of such retrofitted vehicles at the global level.
- The Commission is also exploring action to support the uptake of clean buses made in Europe, including through vehicle fleet and depot conversion support and better aggregation of demand or amortisation rules for local municipalities.
These measures are part of the broader strategy to reduce transport emissions by 90% by 2050 and support the uptake of zero-emission vehicles in corporate fleets.
However, despite the above proposals, the plan does not grant much support to hydrogen when it comes to industrial competitiveness and resilience, raw materials dependency and global level playing field.
Links to legislation and additional information
Automotive Industrial Action Plan
