France’s newly appointed Minister of Industry, Marc Ferracci, recently announced plans to launch an aid program for the European automotive industry, aimed at coordinating electric vehicle (EV) purchase subsidies across EU member states. The goal is to promote the widespread adoption of electric vehicles and support European automakers in the face of global market competition. In addition, Ferracci proposed revising the EU’s current CO2 emission reduction targets for car manufacturers to balance environmental requirements with the industry’s practical capacity.
In a recent interview, Ferracci explained that the current differences in electric vehicle purchase subsidies between EU countries create barriers for cross-border EV sales. To promote the adoption of electric vehicles and reduce production costs, he hopes the EU can implement a unified subsidy policy to ensure consumers in all member states receive equal government support.
“We need to adopt a unified subsidy policy to ensure that consumers are not limited by policy differences when choosing electric vehicles. This will not only accelerate the electrification of Europe’s automotive sector but also help the EU maintain a competitive edge in the global electric vehicle market,” Ferracci said.
In addition to EV subsidies, Ferracci also proposed revising the EU’s CO2 emission reduction targets for car manufacturers, particularly in light of the practical challenges faced by the industry during the transition period. According to EU regulations, car manufacturers are required to gradually reduce the CO2 emissions of new cars to meet the 2030 reduction goals. However, Ferracci believes that the current targets may be too aggressive, potentially placing a heavy burden on manufacturers and impacting employment and industry stability.
“We support the environmental goals, but we must also consider the sustainable development of the industry and job security. We hope to provide more flexibility for manufacturers under strict emission targets, to ensure they can remain competitive and maintain production capacity during the transition,” he explained.
Ferracci also highlighted that the EU automotive industry faces not only internal challenges but also increasing competition from global markets, particularly from China and the United States. With the rise of Chinese electric vehicle manufacturers and the U.S. advancing its green subsidy policies, European automakers are under significant pressure. Ferracci believes the EU must offer both financial support and policy unity to strengthen the competitiveness of Europe’s automotive sector.
“In the increasingly competitive global electric vehicle market, Europe needs a centralized policy framework and unified market support. This will ensure that we maintain a strong position in the upcoming green revolution,” Ferracci added.