Europe’s car industry is backing the main goals of the proposed Industrial Accelerator Act, but manufacturers are warning that the legislation must not create additional costs or complexity at a time when the sector is already under heavy pressure.

The European Automobile Manufacturers’ Association, ACEA, says the proposal could help strengthen manufacturing in the EU and reduce dependence on external suppliers for clean technologies. However, it argues that several parts of the plan need to be adjusted before the rules are finalised.

<h3>Support for European Production</h3>

The European Commission presented the Industrial Accelerator Act in March 2026. The proposal is designed to expand industrial capacity, support decarbonisation and increase demand for products manufactured in Europe. The automotive sector is among the strategic industries covered.

ACEA agrees that protecting manufacturing capacity in Europe has become increasingly important. Carmakers are dealing with weaker demand, rising production costs, strong international competition and large investments in electrification.

The association argues that incentives linked to products made in Europe need to be substantial enough to compensate manufacturers for the higher costs of locating production inside the region.

<h3>Industry Wants a Narrower Scope</h3>

One of ACEA’s main recommendations concerns geography.

The organisation proposes focusing the main benefits on the EU’s 27 member states and the UK. At the same time, it wants existing European automotive investments in countries such as Turkey and Morocco to receive targeted protection. The aim is to encourage additional production in Europe without disrupting supply chains and manufacturing investments that companies have already established outside the EU.

<h3>Local Content Rules Need to Be Simpler</h3>

ACEA is also calling for easier and more balanced methods for determining how much of a vehicle qualifies as locally produced.

Manufacturers argue that calculations should recognise not only the origin of individual components but also the substantial economic value created during vehicle assembly and production in Europe. The association also wants the legislation to acknowledge the importance of European-built vehicles that are exported to markets outside the region.

<h3>Battery Targets Must Match Reality</h3>

Electric-vehicle batteries are another major concern. ACEA supports expanding European battery production but says any targets should reflect the actual pace at which new factories and supply chains can become operational.

Setting requirements significantly ahead of available production capacity could increase costs or create new supply problems rather than strengthening the industry.

The Commission’s proposal includes measures aimed at increasing European production of battery cells and components used in electric vehicles.

<h3>Cars and Trucks Cannot Be Treated the Same</h3>

ACEA also wants policymakers to avoid applying identical requirements across the entire automotive sector.

Passenger cars, vans, trucks and buses operate with different production structures, costs and customer needs. Their transitions to electric or other low-emission technologies are therefore progressing at different speeds.

The association argues that the final legislation should take these differences into account rather than imposing a single model on every vehicle category.

<h3>Balancing Industry and Climate Goals</h3>

The debate around the Industrial Accelerator Act reflects a wider challenge for European policymakers.

The EU wants to reduce industrial dependence on other regions and accelerate cleaner manufacturing, while carmakers must remain competitive against producers operating with different cost structures.

<b>ACEA’s position is broadly supportive of stronger European production, but the industry wants the final rules to reward local investment without making vehicles more expensive or adding unnecessary complexity to an already difficult transition.</b>