A new study reveals that upholding the European Union’s 2035 zero-emission car target could safeguard 1 million auto industry jobs and drive significant growth in electric vehicle (EV) production. Published by Transport & Environment (T&E), the report underscores the critical role of supportive policies in maintaining Europe’s competitive edge in the global EV market amidst challenges like U.S. tariffs and Chinese advancements.

Economic Stakes for Europe’s Auto Sector

The EU’s 2035 mandate requires all new cars and vans sold to emit zero carbon dioxide, effectively phasing out fossil-fuel vehicles. T&E’s study projects that adhering to this goal, paired with robust industrial strategies, could restore Europe’s car production to 16.8 million vehicles annually—matching its post-2008 crisis peak. This would increase the automotive value chain’s economic contribution by 11% by 2035, equivalent to billions in added revenue.

However, abandoning the target could devastate the industry. T&E warns of a potential loss of 1 million jobs and a $105.5 billion (90 billion euros) reduction in the sector’s economic value by 2035. Additionally, two-thirds of planned battery investments could vanish, weakening Europe’s position in the global EV supply chain.

Job Creation in Battery and Charging Sectors

The transition to EVs offers significant opportunities for job growth. T&E estimates that by 2030, battery manufacturing could generate over 100,000 new jobs, with an additional 120,000 jobs in charging infrastructure by 2035. These gains could offset job displacement in traditional vehicle manufacturing, ensuring a smoother shift to electrification.

“It’s a make or break moment for Europe’s automotive industry as the global competition to lead the production of electric cars, batteries, and chargers is immense,” said Julia Poliscanova, Senior Director for Vehicles & Emobility Supply Chains at T&E, reports The Times.

Global Competition and Policy Challenges

European carmakers face mounting pressures, including high domestic production costs and a technological gap with Chinese and U.S. competitors. Recent U.S. tariffs, imposing a 25% levy on auto imports under President Donald Trump, have forced many manufacturers to retract their 2025 forecasts. Despite lobbying to soften CO2 emissions targets, the European Parliament has upheld the 2035 ban on fossil-fuel car sales, though some interim targets were relaxed in May 2025.

To stay competitive, T&E urges the EU to implement policies that bolster domestic EV and battery production, such as incentives for local manufacturing and investment in charging networks. Without these, Europe risks ceding ground to rivals who are rapidly scaling their EV ecosystems.

Implications for EV Owners and Industry

For EV owners and enthusiasts, a strong EU commitment to the 2035 target could accelerate the availability of affordable, high-quality electric vehicles and expand charging infrastructure across the continent. A thriving domestic battery industry would also reduce reliance on foreign suppliers, potentially lowering costs for consumers. Conversely, weakening the mandate could slow EV adoption, limit model options, and hinder the development of a robust charging network, impacting both recreational and professional EV users.

The stakes are high for Europe’s auto industry and its EV future. Upholding the 2035 zero-emission target, supported by strategic policies, could secure economic stability, create jobs, and position the EU as a leader in the global EV market. Failure to act, however, risks significant losses and a diminished role in the electrification revolution.