The automotive sector facing the challenge of emissions: urgent challenges and changes.

The automotive sector is at a crucial crossroads as it begins the year 2025, facing significant challenges arising from the new CO2 emissions reduction regulations that come into effect on January 1. According to Regulation (EU) 2019/631, car manufacturers must meet strict emissions targets for passenger cars and light commercial vehicles, which poses a considerable challenge for the industry, especially in a context where the transition to cleaner energy is urgent. For new passenger cars, the average emissions target is set at 93.6 g CO2/km, while for new light commercial vehicles, it is established at 153.9 g CO2/km. As the horizon extends towards 2030 and 2035, the demands become even more drastic, with emissions needing to reach zero in both categories within a decade. This scenario forces manufacturers to accelerate the transformation towards more sustainable technologies, a process that, however, is not developing at the necessary pace. Faconauto, the dealers' association in Spain, has warned that to meet next year's targets, pure electric cars must achieve a 25% market penetration, an ambitious goal considering they currently only represent 5%. This would require selling about 236,000 electric vehicle units, a figure well above the 70,000 expected for 2025. If the adoption of electric vehicles does not progress sufficiently, manufacturers will be forced to reduce the sale of combustion cars to avoid penalties for exceeding allowed emissions. The impact of these measures on the Spanish market could be devastating. With a need to reduce the registration of up to 175,000 combustion cars to comply with regulations, the automotive sector, which represents a vital part of the Spanish economy, faces an uncertain future. Spain is the second-largest vehicle producer in Europe, and a drastic decrease in registrations could negatively affect employment and investment in the sector. In this context of uncertainty, the PPE Group in the European Parliament has proposed a plan aimed at preserving the competitiveness of the European automotive sector. This proposal has been well received by ACEA, the European Automobile Manufacturers Association, and suggests reviewing the ban on internal combustion vehicles. It advocates for a technology-neutral approach that fosters innovation and proposes temporary relief measures to prevent manufacturers from being penalized immediately for the new standards. The call for technology neutrality echoes the need for a more balanced advancement in the transition to sustainable mobility. Many experts warn that an abrupt imposition of strict regulations could leave a large number of Europeans without access to vehicles, while jeopardizing job stability within the industry and favoring competitors like China that can offer more flexible alternatives. At the same time, a Strategic Dialogue on the future of the automotive industry in Europe is expected to be launched, an initiative led by the President of the European Commission. This proposal aims to discuss and implement measures that the sector urgently needs to adapt to the new market challenges, including the Sustainable Mobility Law in Spain, which will require companies with more than 500 employees to establish sustainable mobility plans within two years. Regarding incentives for the purchase of electric vehicles, the announcement of the end of the Moves III program, which extends until December 31, 2024, has raised alarms in the sector. Organizations such as Anfac and Faconauto have called for the creation of a Moves IV that includes direct aid, minimizing waiting times and facilitating the purchase of electric vehicles by eliminating taxation and reducing VAT. The urgency of these changes is palpable, and the automotive industry faces a period of transformation that will not only impact its operations but also affect the lives of millions in terms of employment, mobility, and access to technology. In this regard, the success of the transition to more sustainable mobility will depend on collaboration between the public and private sectors to build a future where electric vehicles are not just an alternative but an accessible reality for all.