The European Union’s proposed Industrial Accelerator Act could make public support harder to access for some imported vehicles, with Toyota potentially more exposed than Chinese automakers establishing production in Europe. Under the draft rules, eligible vehicles would need to be assembled in the EU and source 70% of the value of their components from the bloc, excluding the battery.
The requirements would apply to battery-electric cars, plug-in hybrids and hydrogen vehicles. They could affect access to purchase incentives and state aid, as well as the ability of public administrations to buy those vehicles. The proposal is still under discussion by the European Parliament and EU member states, so its sourcing threshold and calculation could change.
Chinese manufacturers already have production plans or operations in the region. BYD is preparing to begin series production at its plant in Szeged, Hungary, by the end of the year, while Chery assembles cars in Spain at a former Nissan factory. Analysts cited by Automotive News Europe say local production could help these companies meet the proposed requirements, though it is not certain that the law would primarily benefit European manufacturers.
Toyota, by contrast, imports its bZ4X and C-HR+ electric models from Japan and the electric version of the Urban Cruiser from India. Its electric Proace vans are made in Europe, as they are based on Stellantis models. In 2025, Toyota imported vehicles worth €6.9 billion from Japan across its model range.
Toyota and Jaguar Land Rover are among the companies opposing the proposal, arguing that it could raise electric-car prices. Gartner analyst Pedro Pacheco disputes that concern, saying some European manufacturers already need to reorganise their supply chains to produce affordable electric vehicles. He points to Tesla’s German-made Model Y, which was Europe’s best-selling car across all powertrains in September, with 40,971 registrations, according to preliminary Dataforce figures cited in the report.
Arthur D. Little partner Philipp Seidel raised a different concern: production could remain in Europe while research, development and engineering move to China. He said the draft focuses on the value of components without accounting for where vehicles are designed. The proposal was introduced by the European Commission in March and remains a draft; under its current terms, BYD cars made in Hungary could qualify for support if they contain enough EU-sourced components, while Toyota’s imported electric models would not.
Sources: Numerama.