ECG — 2025-12-22
News from ECG
As we close 2025, here at ECG Business Intelligence we look briefly at the main areas of attention for 2026: Policies, Policies, Policies
In a bid to boost the economic conditions in the European Union, a number of policies are now being re-addressed. Change is in the air as Europe’s position at the top of the table is being competed as economic security is imperative to maintain Europe’s way of life.
For the automotive sector, a key pillar to the economic security of the EU, key fundamental targets and mandates which thrust the green and decarbonization goals on a sector not yet ready for the rampant transition has led to losses and a major competitive disadvantage to European firms, once the top of leading innovations in the automotive industry.
So 2026 will see new policies, mainly pushing economic prosperity for Europe, fundamental for growth in economies and job creation. This will change the direction for a while, but greener targets and decarbonization will remain as medium term goal although short term targets will allow for more flexibility.
Inevitably this spells confusion, with investments in new tech under doubt and exact definitions of what the goals are will be highly anticipated in January 2026.
Exports of passenger cars from the EU saw significant jumps in 2010 of 18% y/y, after the decline of the Lehman Crisis which hit in 2008 and 2009. Can the EU move policies to rebuild car exports once again? In January to October of this year, exports of passenger cars from the EU are down 14.5% y/y, and that’s after years of decline.
Please look at the import – export data at the end of this report. 2026 will be a year the EU wants to shift gear and bring back volume exports from the EU. But is this just wishful thinking? To make it happen new, competitive cars must be built in the EU and open to exports to all global markets.
ECG Members can access the full report here.