The European Commission is set to implement new rules regarding support for electric vehicle manufacturers within Europe, aiming to enhance local production as part of a broader strategy to confront the rising challenge posed by Chinese imports. According to the Financial Times, companies will be required to manufacture at least 70% of their electric vehicle components within EU member states in order to qualify for support from EU governments or institutions. This initiative is a response to the significant trade deficit that the EU has been experiencing in favor of China.

In addition to the overall requirement for local production of components, the plan stipulates that at least 25% of aluminum and 30% of plastic used in manufacturing vehicles' doors and windows must also be sourced from within the EU. These conditions are aimed at increasing local industrial activity and reducing dependency on foreign imports, particularly from China, which has been increasingly dominating the market for electric vehicles and their components.

This move aligns with larger European strategies focused on revitalizing the local manufacturing base in critical industries and enhancing the competitiveness of EU companies against Chinese manufacturers. By mandating local sourcing for vehicle components, Europe is taking a significant step towards fostering its internal market while addressing the economic and strategic challenges posed by external market forces.