EU to boost domestic automotive sector with range of measures

The European Commission said on Tuesday it will support the automotive sector's transition to clean mobility by subsidizing battery production and cutting red tape.

The so-called Battery Booster package valued at EUR1.8 billion aims to accelerate the development of a fully EU-based battery value chain, with EUR1.5 billion in interest-free loans and other funds earmarked for European battery cell producers to "foster innovation and coordination across member states."

Other measures aim to ease the administrative burden and cut costs for manufacturers, boosting competitiveness and freeing up resources for decarbonisation.

"Businesses are expected to save approximately EUR706 million per year, bringing the administrative savings thanks to all omnibuses and simplification initiatives the commission has presented so far to around EUR14.3 billion per year," it said.

The commission proposes to reduce secondary legislation over the years ahead and to streamline testing for new passenger vans and trucks in an attempt to reduce costs while maintaining standards.

"The roll-out of electric vans in domestic transport is supported by measures that place them on an equal footing with internal combustion vans regarding drivers' rest times and rules," it said.

The commission also said it was updating and harmonising car labelling rules, so that customers have complete information about cars' emissions when making purchases.