EU Automotive Sector Action Plan

EU Automotive Sector Action Plan: New Era in Rules of Origin and Trade Defense Instruments
The announcement by the Secretariat General of Uludağ Exporters’ Associations on 16.04.2025 highlights key points from the European Commission’s “Industrial Action Plan for the European Automotive Sector.” According to information conveyed via TİM, the plan is a continuation of the “Strategic Dialogue on the Future of the Automotive Industry” announced on 30 January 2025 and was shared with the public on 5 March 2025. The notice emphasizes that exporters should closely monitor the Commission’s approach to rules of origin, trade defense instruments, and supply chain protection.
Rules of Origin
The section on rules of origin states that the approach to preferential origin rules will be addressed in consultation with the automotive sector and member states. The EU may consider defining sector-specific rules of origin within trade defense instruments to deter firms benefiting from preferential regimes in third countries—particularly those engaging in unfair trade practices—from establishing facilities in the EU market to gain advantages. This framework suggests that origin structures and supply chain models may become more visible in potential investigations.
Trade Defense Instruments
Another major focus is the use of trade defense instruments against unfair practices. The Commission has imposed countervailing duties on imports of Chinese-origin electric vehicles and is prepared to launch new investigations if sufficient evidence emerges that measures are being circumvented. Furthermore, the Commission demonstrates determination to use Trade Defense Instruments and Foreign Subsidies regulations to examine unfair practices in later stages of the supply chain, including batteries and parts. Within this context, potential Chinese investments in Türkiye may be scrutinized under “circumvention of measures” or “foreign subsidy” dimensions.
Foreign Investment Conditions
The announcement also notes that conditions aimed at ensuring foreign investments contribute to the competitiveness of the sector may be introduced. These could include joint venture structures, localization requirements, and senior management frameworks, as well as facilitation of procurement contracts, licensing services, copyright agreements, and technology/intellectual property licensing to support the needs of EU industry. This approach underscores the importance of managing origin and compliance risks from the outset—not only in investment decisions but also in production and supply chain models.