EU Carmakers Push 'Made in Europe' Policy as Chinese EV Competition Rises

Renault, Volkswagen and Stellantis have jointly asked EU policymakers to adopt a “Made in Europe” rule that would require a majority of components in cars sold as European to be sourced from within the EU and closely associated countries. The proposal, linked to the European Commission’s Industrial Accelerator Act, calls for up to 75% European content to qualify for the maximum level of public subsidies and seeks additional incentives for electric vehicles manufactured on the continent.

At the same time, Chinese automotive firms have accelerated their investment in electric‑vehicle technology, increasing spending by 57% in 2026. The surge is eroding the competitiveness of European suppliers, threatening up to 350,000 jobs across the bloc and prompting a freeze in investment by many EU component makers. Spain’s supply chain is highlighted as being under particular strain, with thousands of jobs already lost.

Industry analysts say the disparity reflects a structural crisis rather than a temporary slowdown, prompting calls for broader industrial policy that supports not only final assembly but also engineering, research and battery production within Europe. Critics warn that stricter local‑content rules could raise compliance costs and vehicle prices for consumers.