Renault has joined Volkswagen and Stellantis in a bid to secure stricter local manufacturing rules for electric vehicles. These three carmakers represent over 60 per cent of EU production. They want a simple framework that rewards companies for keeping engineering and assembly within the bloc to counter cheap Chinese imports.

The group proposed a 70 per cent local content threshold for vehicle components, excluding batteries. This requirement would apply to the EU's 27 member states plus Iceland, Liechtenstein, and Norway. Non-European firms like Toyota and Honda warn that excluding UK and Japanese parts will raise costs and make vehicles more expensive for consumers.

Battery supply chains remain the biggest hurdle since China currently dominates the market. The carmakers urged the EU to push the localization deadline back to 2030 instead of 2028. They argue this shift is necessary unless local producers like Verkor and ACC get more government funding to scale their production capacity.

To offset higher European labor and energy costs, the group wants "super credits" expanded to all EVs made in the bloc. This strategy aims to protect regional industrial competitiveness through public procurement and subsidies. The Commission views these local content rules as a way to turn the green transition into actual industrial growth.