ELECTRIVE — 2026-02-26
Automotive Industry
The ‘Industrial Accelerator Act’ is the long-awaited strategy from EU Industry Commissioner Stéphane Séjourné, designed not only to support the growth of European industry but also to make the EU more independent from the US and China in key sectors. A ‘Buy European’ policy is expected, particularly for the automotive sector.
In recent weeks, it has become clear that the European Commission plans to link electric vehicle (EV) incentive programmes to “Europe-first” rules. However, a draft of the “Industrial Accelerator Act” has raised concerns, as it provides important details about the timeline for new funding programmes. As reported by Edison (in collaboration with Focus Online), the EU document proposes that public funding programmes in EU member states must meet specific conditions in the future. “State funding programmes that support the purchase, leasing, or rental of battery-electric vehicles (BEVs), plug-in hybrids (PHEVs), or fuel cell vehicles (FCVs) must in future comply with strict EU origin requirements,” the draft states. “Only beneficiaries whose vehicles meet these ‘Union-origin’ criteria—such as minimum shares of European value added—will be eligible for funding.” Furthermore, the draft stipulates that the new rules will apply to programmes launched or updated six months after the regulation comes into force.
This could pose a challenge for the German government’s planned electric vehicle incentives. To date, these have been primarily socially oriented, with income limits to help lower-income households switch to a clean electric vehicle. Currently, there is no final funding guideline or state aid approval from the EU Commission, only the key points presented by Federal Environment Minister Carsten Schneider (SPD) in January. To include as many affordable models as possible in the funding scheme, the German government has avoided imposing any restrictions on vehicles, such as price caps or origin requirements.
The ‘Union-origin’ criteria cover not only assembly but also the battery, the most valuable component of an electric vehicle. In the first phase of the draft, it is expected to be sufficient to assemble the battery system from non-EU cells in the EU and equip it with a locally produced battery management system. During this transition period, battery cells from Asia could still be used, provided the ready-to-install battery systems are assembled in the EU. From the third year onwards, the battery cells and specifically the cathode active materials must also originate from the EU.
It remains unclear what stage this draft is at and how close it is to the final version, which Séjourné is expected to present in early March. Given the delays, it is uncertain whether the content of the ‘Industrial Accelerator Act’ will be modified. Even if Séjourné presents these ‘Union-origin’ criteria in their current form, they are initially only a proposal from the EU Commission. To become EU-wide law, further steps are required.
However, some form of “Union-origin” criteria seems likely, even if the specific criteria and timelines may still be renegotiated during the legislative process. The automotive industry is divided on this issue: VW CEO Oliver Blume and Stellantis CEO Antonio Filosa called for a CO₂ bonus for European electric vehicles in a joint open letter. However, German premium manufacturers are not supportive of this strategy. Despite declining market shares, China remains an important market for them, and they fear a trade conflict.
The German government also faces a dilemma. In its current form, the German incentive scheme would contradict the forthcoming EU policy. Berlin could attempt to launch the funding before the EU regulation comes into force, possibly with later adjustments to comply with the requirements. Alternatively, the German government could adapt its plans in advance to align with the emerging EU policy, but this would exclude many affordable electric vehicles from what is intended to be a socially oriented incentive scheme.