Following the European Commission’s Strategic Dialogue on Automotive Industry Competitiveness, an action plan was published on 5 March 2025 that mentions local content policy with three key focus areas: electrification (batteries), ADAS/connectivity, and cybersecurity. To assess EU tech sovereignty and value creation, CLEPA set out to build a solid fact base by comparing competitiveness gaps with other markets and reviewing different approaches to local content policies.
CLEPA has engaged Roland Berger to conduct this assessment of competitiveness gaps, related risks, and potential local content measures.
Among its findings are:
Cost disadvantage of 15–35% for European suppliers
- Driven by high energy and labour costs, regulatory burdens, and fragmented frameworks
Competing regions (China, US) combine industrial support with protective measures
- Result: structural disadvantages and unfair competition for EU suppliers
Up to 23% of European value add at risk by 2030
- Due to powertrain transition and value transfer outside the EU
Potential loss of up to 350,000 jobs in Europe
- Threatening employment and the industry’s wider social contributions
