Historically, the automotive sector has been a major pillar of the EU economy, but this position is now threatened as manufacturers resist building a sustainable future in electric vehicles.

While auto manufacturers may face penalties for missing emissions targets, Bock believes the industry can meet these goals through a diverse range of vehicle options, including hybrids.

However, rapidly phasing out internal combustion engines without ensuring competitive electric vehicle production may lead Europe to become overly dependent on Chinese imports.

Ultimately, the EU's emissions targets, especially for 2035, are crucial for the Green Deal and must be upheld to ensure the future viability of the automotive sector.

Sebastian Bock from the transport advocacy organization T&E emphasizes the need for Europe to regain technological independence through technology transfer agreements and a 'Local Content' policy for battery production.

As EV sales remain slow, European manufacturers are facing fierce competition from China, which has established dominance in electric vehicle production.

High acquisition costs, battery range concerns, and inadequate charging infrastructure are hindering consumer acceptance of electric vehicles across Europe.

In response, German manufacturers are expected to introduce affordable electric vehicles priced under €25,000, targeting a previously underserved market segment.

To address these challenges, an upcoming Action Plan for the Automotive Industry, set to be presented on March 5, aims to provide guidance for the sector's future success.

The presence of affordable electric cars from Chinese companies like BYD and Nio further intensifies the competitive landscape for European automakers.

The European auto industry is currently grappling with significant challenges as it struggles to adapt to the electric vehicle (EV) market, particularly in the realm of battery production.

China controls over 60% of global battery production and essential raw materials, raising concerns for European manufacturers about maintaining competitiveness.