Overview
- According to a draft seen by the Financial Times, national purchase incentives would apply only to vehicles assembled in the EU that meet a 70% EU‑content threshold by value.
- The measure would cover electric, hybrid and hydrogen vehicles for both private buyers and public procurement programs, shifting subsidies from emissions criteria to industrial content.
- Reporting diverges on batteries: the 70% calculation may exclude the pack, yet key battery components would still need EU origin, a challenge given current dependence on Asian suppliers.
- Publication is reported for February 25 with formal promulgation on February 26 and the broader package due in March, though details could change before the official text is released.
- Industry responses are mixed as suppliers press for strong protections and some automakers warn of retaliation, while Chinese brands accelerate European production such as BYD’s planned Hungary plant opening in the second quarter.