Renault, Volkswagen and Stellantis push EU ‘Made in Europe’ car label, Toyota warns of limits

Three major European automakers – Renault, Volkswagen and Stellantis – have requested the European Parliament adopt a rule that a vehicle can be marketed as ‘Made in Europe’ only if at least 70 % of its value is created within the EU. The proposal aims to protect billions of euros in investments and jobs amid rising production costs and competition from non‑European manufacturers. Toyota Motor Europe has criticised the draft, arguing that it should also recognise cars built in the United Kingdom, Turkey and Japan, and warning that the rule could restrict investment, technology transfer and employment in the sector.

The debate highlights how the definition of a European‑made car is complicated by global supply chains, especially for electric vehicles whose batteries and electronics often originate outside the bloc. Stakeholders fear that the rule could label a Chinese‑built car assembled in Hungary as European, while a Toyota built in Japan or Turkey might be excluded.