Industrial Accelerator Act adds Made in EU requirements for automakers

The EU Commission's proposed Industrial Accelerator Act (IAA) introduces new “Made in EU” stipulations for electric vehicles as part of a range of measures aimed at increasing the manufacturing sector’s share of the bloc’s GDP to 20% by 2035, up from 14.3% in 2024. The act was proposed on Wednesday 4 March after delays and renegotiations pushed its publication to the wire. Further negotiations between the Council and the European Parliament are required before the IAA can be adopted and enter into force. The “Made in EU” rules add tough requirements for automakers looking to benefit from incentive schemes, financial support for corporate vehicles, or public procurement, though there are exceptions for the “small cars” segment.