The European Commission is set to unveil its Action Plan for the automotive sector, a strategic document outlining the future of mobility in Europe. This initiative aims to address key challenges related to incentives, investments, and emerging technologies. Here’s what we know so far.
The final version of the Action Plan will be officially presented in the coming days. It will then be up to individual member states to implement the recommendations, decide on specific incentives, and allocate resources to drive the transition toward a more sustainable mobility future.
Incentives for 2026: Social Leasing and National Support
According to early reports, Brussels plans to introduce social leasing initiatives to make new and used cars more accessible, particularly for vulnerable citizens in countries like Italy, Spain and Germany (Denmark definitely doesn’t need). These programs will be financed through the Social Climate Fund, which will allocate €86.7 billion between 2026 and 2032.
In addition to social leasing, the plan will include a “toolbox” of options for EU member states, potentially including national incentives for electric vehicle (EV) purchases. There is also ongoing discussion about establishing European-wide incentive schemes starting in 2026.
Improving battery production
To strengthen Europe’s battery production capabilities, the European Commission will allocate €1.8 billion between 2025 and 2027 through the European Innovation Fund. This funding will directly support companies in the sector.
This initiative complements the €3 billion already earmarked for cell production, with the first €1 billion call for proposals launched in December last year.
The Role of E-Fuels
Synthetic fuels (e-fuels) will be considered as part of the EU’s technology-neutral approach. The European Commission is expected to include e-fuels in its 2026 regulatory review, aligning with the broader strategy to support diverse low-emission mobility solutions.
Heavy-Duty Vehicles and Corporate Fleets
To support the green transition in heavy transport, the Action Plan will allocate €570 million in 2025-2026 for developing alternative fuel infrastructure.
Furthermore, by the end of 2025, the European Commission is expected to present a proposal for the full electrification of corporate fleets. If implemented, this could significantly accelerate EV adoption in businesses across Europe.
