Toyota urges the European Union to extend preferential treatment under its Industrial Acceleration Act to automobiles produced in trusted partners such as Japan, the United Kingdom, and Turkey to avoid a competitive disadvantage against European-made EVs.

The discussion emphasizes sustaining mutual investment, fair access to European markets, and avoiding measures that isolate Europe from long-standing partners like Japan.

Japanese stakeholders highlight the Japan-EU Economic Partnership Agreement’s relevance and seek consistent treatment across the IAA to strengthen collaboration in automotive, energy, and technology sectors.

Industry voices warn that overly restrictive IAA provisions could raise costs, trigger disinvestment, and reduce competitiveness, urging the EU to design policies that attract rather than deter investment from trusted partners.

The company warns that excluding non-EU plants from subsidies and procurement preferences could undermine free trade principles and affect strategies of Japanese firms with deep EU roots.

The debate includes views from MEPs and industry bodies on balancing decarbonization and local production goals with maintaining open, cooperative international industrial ecosystems.

European lawmakers and industry officials in Strasbourg discuss the EU’s Industrial Accelerator Act (IAA) and its impact on international investment and a level playing field for trusted partners.

The IAA introduces Made in Europe standards, including 70% local content for electric and plug-in hybrid vehicles, with access to procurement and subsidies contingent on EU assembly, challenging global supply chains.

Toyota European president Yoshihiro Nakata warns that EU procurement and subsidy priorities favoring European products could put Toyota at a price-competition disadvantage despite extensive European investment and 25,000+ local employees.

Chief Cabinet Secretary Minoru Kihara stated that the EU should not deny Japan preferential treatment and must ensure fair competition.

Germany and France announced they would exclude vehicles from certain non-EU countries, including Japan, from the proposed preference scheme.

Toyota notes concern over Chinese automakers expanding in the EU with aggressive low-price competition and cautions policy design could penalize vehicles produced outside the EU but within partner countries.