The Industrial Accelerator Act, introduced by the European Commission as part of the Clean Industrial Deal, aims to strengthen Europe’s industrial competitiveness while accelerating the transition to low-carbon technologies. For the automotive industry, this new framework brings concrete implications, particularly in terms of production, sourcing and supply chain strategies.

A central element of the Act is the emphasis on “Made in Europe”. To qualify, a vehicle must be assembled within the EU (or in partner countries with EU agreements) and include at least 70% EU components, excluding batteries. This measure is designed to promote European industrial production and reduce reliance on external suppliers in strategic sectors such as automotive.

At this stage, the scope of the regulation remains limited to electric and hybrid vehicles. However, this has already raised questions within the industry, with many stakeholders calling for a broader definition that would include all types of motorized vehicles.

These new requirements are expected to have a significant impact on automotive players. Companies may need to rethink their supply chains, adapt their sourcing strategies, and reinforce their industrial footprint in Europe in order to remain compliant and competitive in a rapidly evolving regulatory environment.

The Act still needs to be validated by the European Parliament and the Council before entering into force, with further details expected in the coming months.