European Commission issues communications to promote competitiveness of European automotive sector and decarbonisation of corporate vehicles

On 5 March 2025, the European Commission gave two Communications: one on an industrial action plan for the European automotive sector and one on the decarbonisation of corporate fleets. The Ministry of Transport and Communications informed the Parliament of Finland of the Action Plan for the automotive industry on 9 May 2025 and of the Communication on the decarbonisation of corporate fleets on 26 May 2025.

Finland welcomes Action Plan for automotive industry

The European automotive industry is in midst of a rapid transition towards zero-emission transport. The Commission underlines that the automotive industry is undergoing a critical transition in Europe, challenged by rapid technological developments and an increasing competition.

The purpose of the Communication on the Action Plan for the automotive industry is to propose measures in response to the significant competitiveness challenges identified for the industry, including dependencies on raw materials, supply chain risks, excessive reliance on fossil fuels and an increasingly volatile geopolitical context.

The Communication lists practical measures to support global competitiveness and maintain a strong European production base through action in key areas: innovation and digitalisation, clean mobility, competitiveness and supply chain resilience, skills and social dimension, and market access, level playing field and economic security.

The Commission’s Communication does, however, not have any direct national impacts. Finland receives this Communication favourably, welcoming its comprehensive approach and target-setting.

Finland also considers it important to promote digital transformation, technological neutrality, innovations, clean mobility, skills and the social dimension in a comprehensive way, taking into account all  stakeholders in the transport ecosystem and all actors in the value chains of the automotive industry. 

Finland supports Commission’s objective to increase market share of emissions-free vehicles 

The Automotive Action Plan was published in conjunction with the Communication on the decarbonisation of corporate cars, which sums up the best ways to increase the share of zero-emission vehicles in company-owned fleets. Business vehicles account for 60 per cent of all new vehicles registered for the first time in the EU.

Finland welcomes the Commission’s objective to increase the market share of emissions-free vehicles. Finland shares the Commission’s view that the growing demand for zero-emission vehicles could help support the growth and competitiveness of the European automotive industry.

Starting in the second quarter of 2025, the Commission will launch a high-level dialogue with relevant stakeholders to discuss key measures and options for accelerating the uptake of emissions-free vehicles in companies. This dialogue will then feed into the preparation of a legislative proposal by the Commission. The Communication does not give any details on the content of an upcoming legislative proposal or on the individual measures proposed.

Finland considers that emission reduction measures must be cost-effective and technology-neutral. At the outset, Finland has reservations about the enactment of new legislation that would impose obligations to decarbonise corporate fleets. A more appropriate approach would be to enhance an effective implementation of the existing legislation instead of introducing new binding regulation.

Next steps?

The European Commission will proceed with its work by holding bilateral discussions with stakeholders in order to implement its Communications. The two Communications do not contain any details on individual proposals for measures. As for possible future initiatives proposed on the basis of these Communications, Finland will establish its position on a case-by-case basis.

Inquiries:

Anu Aavamäki-Tortosa, Senior Specialist, tel. +358 295 342026, [email protected] (Action Plan for the automotive industry)
Elisa Vornanen, Senior Specialist, tel. +358 295 342054, [email protected] (decarbonisation of corporate fleets)