Europe’s Automotive Crossroads: Geopolitics, Industrial Policy, Competitiveness and the Industrial Accelerator Act

In this paper, we discuss:

• Why Europe’s automotive industry is facing mounting competitiveness pressures amid the global shift to electric vehicles;
• How China built an integrated EV ecosystem spanning batteries, critical minerals, energy, and vehicle manufacturing, creating significant competitive advantages;
• Why the EU is turning toward a more interventionist industrial policy through the proposed Industrial Accelerator Act;
• The debate between industrial sovereignty and openness, as policymakers weigh strategic autonomy against the benefits of global value chains;
• How the Act could reshape UK-EU automotive relations and test the balance between economic integration and “Made in Europe” industrial policy.

Download PDF: EU Automobile Industry – June 2026