Volkswagen, Stellantis, and Renault are teaming up to lobby EU policymakers for regulations that favor European automaking as Chinese competitors intensify pressure on the continent. The three mass-market manufacturers, which collectively produce 60% of vehicles in the EU, submitted proposals Friday calling for stronger local sourcing requirements.

Their joint document recommends easing the Industrial Accelerator Act framework to require 70% of EU-made vehicles to contain at least 70% value of work and components from member states. The automakers argue rewarding local content will help them address technology gaps, high energy costs, and intense global competition threatening their competitiveness.

Europe's struggling transition to electric vehicles has created openings for Chinese brands like BYD and MG, which are rapidly gaining market share with affordable models. Meanwhile, the Chinese market is contracting, with sales down 20% this year, pushing manufacturers to seek new export opportunities.

Non-EU carmakers including Toyota and Nissan express concern the proposals could exclude components manufactured in the UK, Japan, and Turkey. Toyota Europe's Yoshihiro Nakata warned of severe consequences for commercial activities and investment in Europe if the plans move forward without broader inclusion.