Securing the Competitiveness of the EU Automotive Industry: Technological Neutrality and Data Access in the Driver’s Seat
On Wednesday, 26 March, SME Europe co-organized together with ZPP – Union of Entrepreneurs and Employers a roundtable discussion titled „Securing the Competitiveness of the EU Automotive Industry: Technological Neutrality and Data Access in the Driver’s Seat” at the European Parliament in Brussels. The event was co-hosted by Elżbieta Łukacijewska MEP, Committee on Environment, Climate and Food Safety, Committee on Transport and Tourism, and Kosma Złotowski MEP, Committee on Transport and Tourism.
The panel featured distinguished experts including Malgorzata Wenerska-Craps, Director at General Secretariat of the Council, Competitiveness and Trade, Internal Market, Industry, Competition and Intellectual Property at the European Commission; Tomasz Bęben, President of the Board at Association of Automotive Parts Distributors and Producers (SDCM); Mark Nicklas, Head of Unit, DG GROW at the European Commission; Aleksandra Kozlowska, Head of Section, Internal Market at the Permanent Representation of Poland to the EU; Benjamin Krieger, Secretary General at European Association of Automotive Suppliers (CLEPA); Sylvia Gotzen, Chief Executive of the International Federation and Political Representative of Independent Wholesalers and Retailers of Automotive Replacement Parts in Brussels (FIGIEFA); Marcin Barankiewicz, Secretary General at the European Garage Equipment Association (EGEA). The debate was moderated by Zuzana Púčiková, SME Connect Special Advisor for Digital and Climate Transition, Ambassador for EU Climate Pact & Diversity in Transport.
Elżbieta Łukacijewska MEP welcomed the European Commission’s Automotive Industrial Action Plan as a positive step, but stressed that more must be done to ensure that no part of the ecosystem is left behind — particularly in upholding technological neutrality and staying focused on achieving climate and industrial goals in a balanced way. MEP Łukacijewska outlined three key priorities she believes the European Parliament should address. First, she called for a dedicated EU law on in-vehicle data access, ensuring fair and transparent rules that provide independent service providers with the legal certainty needed to innovate and meet consumer needs. Second, she highlighted the importance of future-proofing type-approval rules, especially as vehicles become increasingly software-driven—arguing that repair and service providers must have safe and secure access to necessary technical information. Third, she emphasized the need to strongly support remanufacturing, noting its environmental benefits as well as its role in strengthening local industry, saving resources, and creating skilled jobs. She concluded by assuring participants that their voices are being heard, and that her office is always open to dialogue and collaboration in the search for inclusive, effective solutions.
Kosma Złotowski MEP highlighted the critical challenges faced by the European automotive industry, which has long been a pillar of economic growth. He expressed concerns over the European Commission’s recent plan, criticizing it for not adequately reversing previous policy mistakes—particularly those pushing for full electrification and restricting combustion engine registrations. He argued that these actions have indirectly fueled the expansion of Chinese car manufacturers within Europe. Złotowski emphasized that the automotive sector must focus on competitiveness rather than being driven by ideological objectives. He called for a balanced approach to emissions reduction, advocating for the inclusion of diverse technologies. Additionally, he stressed that the automotive industry is not solely composed of large manufacturers but also includes a vast network of smaller entities such as parts manufacturers, independent garages, and vehicle inspection stations—many of which are Polish SMEs. He warned that the high costs associated with sector transformation could lead to the bankruptcy of these small businesses, ultimately increasing maintenance costs for consumers.He also expressed gratitude to Tomasz Bemben and the automotive parts distributors and producers association for their efforts in organizing the meeting, underlining the necessity of amplifying the voices of SMEs in Brussels. Złotowski concluded by calling for a more inclusive debate on the future of the automotive industry, one that safeguards fair competition and the survival of small market players.
Tomasz Bęben explained that the automotive sector is not a monolith, but a diverse value chain. In Poland alone, the industry accounts for around 8% of GDP, with over 1,000 companies engaged in parts manufacturing—many of which focus on internal combustion engines. Poland also ranks among the world’s top exporters of automotive spare parts. Mr. Bęben emphasized the importance of the aftermarket and the role of wholesalers and independent garages, particularly in serving suburban and rural areas where access to authorized service centers is limited.
He noted that the sector is currently undergoing a significant transformation, driven by digitalization and the shift to zero-emission mobility. While these changes bring opportunities, they also pose serious challenges, particularly for smaller market operators. He warned of growing structural imbalances between vehicle manufacturers and independent operators, particularly around access to vehicle data. Without fair and secure access to technical and operational data, independent repairers risk being excluded from the market. Mr. Bęben called for the urgent adoption of long-awaited EU legislation to ensure open access to in-vehicle data, enabling competition, innovation, and consumer choice. He also emphasized the need for a technologically neutral approach to the green transition. Rather than focusing solely on electrification, he advocated for a strategy that includes hybrid systems, hydrogen, and other clean technologies to ensure flexibility and resilience in the sector. Lastly, he underscored the importance of workforce reskilling and the need for training programs that equip employees with the competencies required for the evolving automotive industry. He concluded by calling for smart regulation, reduced bureaucratic burdens, and a policy framework that makes Europe a competitive hub for innovation, investment, and sustainable mobility.
Mark Nicklas emphasized that the future of the EU automotive industry is a pressing and truly pan-European issue, engaging stakeholders across Member States and institutions. Mr. Nicklas highlighted the sector’s immense economic importance — accounting for over 4% of industrial employment across 15 EU Member States, not including jobs in repair and aftermarket services. He noted that while Europe has a proud history in automotive innovation, it now faces a pivotal moment of transformation. Despite leading in global R&D investment, the EU still lags in key technologies such as next-generation batteries, software-defined vehicles, and automated driving systems. Mr. Nicklas stressed the need to accelerate innovation, particularly in areas where the EU is not yet globally competitive. This includes software, AI integration, battery tech, and connected vehicles. He also highlighted the fragmented regulatory landscape for autonomous vehicles, calling for a harmonized single market to enable scalable testing and deployment. He welcomed the flexibility introduced in CO₂ targets to give industry breathing space, while reaffirming the importance of stimulating uptake of zero-emission vehicles—primarily electric, though not exclusively. He noted that infrastructure rollout, grid connections, and incentive schemes are vital, especially for commercial fleets. Mr. Nicklas warned against replacing fossil fuel dependency with new vulnerabilities in battery materials. The EU must build competitive and resilient supply chains for raw materials and critical vehicle components, promoting “Made in Europe” content across the value chain. He pointed to recent Commission approvals of strategic raw materials projects as a key step. While the EU has limited competences in education and training, he emphasized the importance of upskilling and reskilling workers to ensure they are equipped for the evolving automotive ecosystem—and that companies can find the talent they need. Mr. Nicklas addressed the growing challenge of Chinese overcapacity and unfair trade practices. He noted that the Commission has already begun implementing anti-subsidy measures and is exploring more strategic use of its trade toolbox to ensure that foreign investment in Europe creates real economic value and quality jobs. He concluded by underlining the urgency of implementation. The action plan, adopted just three weeks prior, is the result of broad stakeholder dialogue, but it now requires swift and coordinated action across EU institutions, Member States, and regions—especially to support SMEs throughout the transition.
Benjamin Krieger emphasized how strong the automotive supply industry plays a central role in Europe’s economy and competitiveness. Representing 1.7 million direct jobs and over €30 billion in annual R&D investment, the sector contributes more to innovation than vehicle manufacturers and remains a cornerstone of industrial strength across the EU. Mr. Krieger acknowledged the ongoing transformation of the sector and stressed the urgent need for regulatory flexibility. He pointed out that the current pace of market uptake is insufficient to meet the existing CO₂ targets. He therefore called for a revision of the CO₂ regulation to reflect current market realities and restore technological openness — including support for hybrid technologies, range extenders, and hydrogen solutions. He cautioned against trying to predict the future of mobility with certainty, instead advocating for a flexible framework that allows innovation to flourish and policy to adapt. Beyond CO₂ regulations, Mr. Krieger emphasized the importance of energy pricing, regulatory coherence, and critical review of existing rules—questioning whether every regulation is effectively delivering on its sustainability objectives. He also noted the increasing geopolitical focus on defense and strategic autonomy, pointing to the potential role of the automotive industry’s manufacturing capacity in contributing to Europe’s defense readiness. In this context, he called for a regulatory environment that avoids internal contradictions—particularly between sustainability targets and defense needs—and instead supports innovation, industrialization, and competitiveness. Mr. Krieger concluded by affirming the industry’s strong willingness to contribute to Europe’s goals but stressed that it requires a smart and realistic policy framework to do so. He encouraged dialogue, critical evaluation, and the political courage to make adjustments where necessary to ensure the sector remains a global leader.
Sylvia Gotzen emphasized that the competitiveness of the EU’s automotive industry depends on the competitiveness of its entire supply chain, particularly the aftermarket. She underlined that maintaining effective competition in the aftermarket—covering spare parts, vehicle repair, and maintenance services — is essential to ensuring mobility for the 280 million vehicles on Europe’s roads. With 30,000 independent wholesalers and over 400,000 workshops across Europe, the aftermarket sector not only supports mobility but also provides more jobs than the vehicle manufacturing industry itself. Ms. Gotzen welcomed the inclusion of several aftermarket-related points in the Commission’s Automotive Action Plan, but stressed that more is needed to address real barriers to competitiveness. She pointed to the urgent need for secure and fair access to vehicle data and technical information, particularly as vehicles become more digitized and reliant on software. Without this, workshops struggle to repair electric vehicles efficiently—leading to longer downtimes and higher costs for consumers, which in turn hinders public confidence in e-mobility and the development of a viable second-hand EV market. She further emphasized that connected and automated driving technologies must be accompanied by competitive services, and that enabling access to vehicle data is critical. Predictive maintenance, roadside assistance, and new mobility services all depend on real-time data access—yet the current regulatory framework does not provide this. While the Data Act offers general principles, Ms. Gotzen warned that it remains insufficient for the unique needs of the automotive sector and called for sector-specific legislation to guarantee access to vehicle functions and resources. She proposed that the Commission begin evaluating known systemic shortcomings of the Data Act now, rather than waiting for a formal review process years later. This would allow the sector to keep pace with technological change and avoid further entrenching imbalances in market power between manufacturers and independent operators. Ms. Gotzen also cautioned against confusing simplification with deregulation. In a market where dominance and limited access still pose real challenges, regulatory frameworks remain essential. She highlighted the ongoing review of the Motor Vehicle Block Exemption Regulation (MVBER) as a critical area where such protections must be preserved. She concluded by inviting EU institutions to actively involve the aftermarket in the implementation phase of the Automotive Action Plan. The sector, she said, stands ready to be a strong partner in achieving the EU’s goals—if the right legislative and enabling conditions are in place.
Marcin Barankiewicz emphasized that fair and secure access to in-vehicle data is critical for the future of the independent automotive aftermarket and for ensuring consumer choice across Europe. He pointed out that 80% of workshops in Europe are independent, and their ability to deliver high-quality services depends directly on access to vehicle tools, diagnostics, performance data, and usage patterns. Access to such data not only enables innovation and regulatory compliance but also ensures that independent service providers can offer consumers competitive options, ultimately enhancing affordability, quality, and choice. Mr. Barankiewicz detailed several key challenges facing the sector: Interoperability issues, as manufacturers use varying systems and data protocols, complicating access across multi-brand platforms; Data privacy and cybersecurity, which he acknowledged are crucial concerns not just for OEMs, but also for the independent sector; High access costs, which often create barriers for small and medium-sized enterprises (SMEs), despite growing efforts by OEMs to develop data-sharing systems; Technical barriers related to the complexity of proprietary vehicle systems; Data ownership and control, which frequently lies solely with manufacturers, limiting access for independent providers. He stressed that overcoming these barriers is vital for consumer welfare, as it allows for: greater freedom of choice beyond manufacturer-affiliated service centers; competitive pricing for repairs and maintenance; more personalized, data-driven services; broader economic benefits, including job creation, SME innovation, and investment in new technologies. Mr. Barankiewicz concluded by calling for collaborative solutions to ensure fair and secure data access across the automotive value chain. He urged policymakers and industry stakeholders to recognize that the future of the sector lies in connected, data-driven vehicles—and that a balanced and open data framework is essential to unlock its full potential for businesses and consumers alike.
