How buy-European rules can help save Europe’s car industry

Europe’s car industry faces a perfect storm. Chinese car exports are surging, European producers are being squeezed out of global markets, US tariffs are rising, and domestic demand remains 20 per cent below pre-pandemic levels. Instead of sliding into a costly muddle of regulatory rollbacks, bailouts, and fragmented national subsidies, the EU should harness its single market – 450 million consumers and a vast corporate sector – to drive demand for Europe-made vehicles. That means co-ordinating consumer subsidies with a buy-European clause, applying it to both private and corporate fleets, and using it as a platform for reciprocal EV-subsidy agreements with trusted trade partners. A window for action is open: Germany, France, Italy, and Spain all need to renew their EV-support schemes in the coming months. Together, they represent 70 per cent of EU car registrations – and could launch broader European co-ordination.