The European Association of Automotive Suppliers (CLEPA) has called on the European Commission to prioritize industrial sovereignty and fair competition as Europe’s automotive supply sector faces intensifying external pressure, particularly from China.
Automotive suppliers account for approximately 75 percent of a vehicle’s total value and remain a cornerstone of Europe’s industrial ecosystem, supporting innovation, research and development, and employment across multiple member states. However, the sector is increasingly exposed to market distortions linked to foreign subsidies, price dumping, state-backed overcapacity and unilateral trade measures.
According to CLEPA, these dynamics are placing European manufacturers at a structural disadvantage despite the industry’s continued commitment to open global trade.
EU automotive trade balance with China shifts into deficit
The association highlighted a sharp deterioration in Europe’s automotive trade balance with China as a key indicator of mounting competitive pressure.
Imports of automotive components from China reached €8.2 billion in 2025, reversing a nearly €7 billion European trade surplus recorded five years earlier into a deficit of €0.7 billion. CLEPA warned that growing dependence on lower-cost imports risks weakening Europe’s industrial base and eroding long-term innovation capacity.
A study conducted by global consulting company Roland Berger indicates that failure to address these trends could result in a loss of up to 350,000 jobs across Europe’s automotive supply sector by 2030.
Industrial policy seen as key to safeguarding value creation
Against this backdrop, CLEPA emphasized that forthcoming EU industrial initiatives, particularly the Industrial Accelerator Act, should directly link public procurement programs, subsidies and regulatory incentives to European value creation.
The association proposed establishing a formal definition of a “European vehicle”, requiring at least 75 percent local content at vehicle level, excluding batteries. Such a framework would aim to ensure that the majority of economic value generated by vehicle production remains within Europe.
In addition, CLEPA recommended the gradual introduction of local-content thresholds for strategic technologies, including electric powertrains and electrical and electronic systems, which are increasingly central to the automotive transition.
Maintaining technological sovereignty during mobility transition
According to CLEPA, strengthening regional supply chains is essential to safeguarding industrial employment while ensuring that investments linked to decarbonisation and digital transformation remain anchored within Europe.
The association concluded that defining and supporting genuinely European industrial value chains will be critical to maintaining technological sovereignty, reinforcing competitiveness and preventing Europe’s mobility transition from becoming dependent on external industrial ecosystems.