KATHMANDU: Japanese and British automakers have raised concerns over the European Union’s proposed “Made in Europe” plan. The draft law could introduce strict local content requirements for vehicles and batteries according to Nikkei Asia.
Under the proposed Industrial Accelerator Act, companies may need to meet minimum European content thresholds. Those failing to comply could be excluded from public contracts worth around 2 trillion euros. The plan is expected to be published on February 25.
Honda has expressed concern over the strong focus on local production rules. Ian Howells, executive vice-president of Honda Europe, said the company prefers a cooperative approach based on shared values.
Toyota Motor Europe has also urged the EU to maintain trade ties with partners such as the UK and Japan. Industry groups warn that rigid definitions of “Made in Europe” could reduce competition and increase costs.
The EU aims to raise the industry’s share of gross value added from 14.3 percent in 2020 to 20 percent by 2035. Officials say the plan is designed to strengthen domestic manufacturing and reduce dependency on subsidized imports, particularly from China.
However, critics argue that broad local content rules may breach global trade commitments and weaken existing trade partnerships. EU member states remain divided over how strictly the rules should be applied.
