Japan to Ask Germany to Revise EU Electric Vehicle Rules

The European Union's draft Industrial Accelerator Act (IAA), supported by a joint German and French policy framework, aims to strengthen its electric vehicle industry. This framework tightens the "Made in Europe" standard, limiting preferential treatment, such as subsidies and public procurement eligibility, to vehicles assembled within the EU or using a specified share of EU-produced components. This policy effectively excludes cars from non-EU countries like Japan and South Korea, potentially disadvantaging Japanese automakers in the European market.

Japanese Prime Minister Takaichi Sanae will convey Japan's position directly to German Chancellor Friedrich Merz, pressing for a policy revision. While Japan's Ministry of Economy, Trade and Industry (METI) reportedly believes overturning the German-French agreement itself will be difficult, it plans a diplomatic push to include Japanese-made vehicles in the preferential measures during the "trilogue", closed-door negotiations involving the European Commission, the European Parliament, and the Council of the EU.

Japan's diplomatic argument emphasizes existing cooperative ties between Japanese and German automakers, suggesting that excluding Japanese vehicles could damage these relationships. Beyond electric vehicle policy, the two leaders are also scheduled to discuss broader cooperation in advanced technology, including artificial intelligence and cybersecurity measures, and potential German participation in the Global Combat Air Programme.