Toyota Motor Europe wants EU and UK policymakers to recognise trusted trading partners, ease near-term CO2 targets and count vehicles running only on renewable fuels as zero emission.
What counts as a European car? Toyota wants the answer to reach beyond the EU’s borders. On 16 October, Toyota Motor Europe set out its policy requests as Brussels shapes the Industrial Accelerator Act and its Automotive Package. The UK Government is also reviewing its Zero Emission Vehicle (ZEV) mandate.
The main request is a “Made with Europe” approach to local-content rules. Toyota also wants more flexible CO2 targets, recognition for renewable fuels and a UK mandate that follows the EU’s timeline.
From “Made in” to “Made with”
Toyota says it has designed, developed and built vehicles, engines and hybrid systems in Europe for more than 60 years. Its president and CEO, Yoshihiro Nakata, said Toyota is “not a guest in Europe”.
The company argues that a rule counting only EU assembly would send the wrong signal to long-standing investors. Instead, it wants recognition for a small group of trusted free-trade and customs-union partners, naming the UK, Türkiye and Japan. Toyota says that wider market totals around 31 million vehicles.
Its requests to EU legislators include:
- Phasing in European-content requirements towards 70 per cent after three years. Content would be measured on ex-works value and would include engineering, R&D and final assembly.
- No substantive automotive requirements before 2030.
- A 70 per cent threshold for overall vehicle sales, rather than the proposed 85 per cent.
- One consistent set of rules across public procurement, incentives and corporate fleets.
- A temporary exemption for fuel-cell vehicles while that market and its supply chain develop.
The Gap Between Rules and Buyers
On CO2, Toyota points to a mismatch. Forecasts put battery-electric cars at around 45 per cent of new sales by 2030, yet current rules require more than 55 per cent. Toyota says the gap is even wider for light commercial vehicles (LCVs).
Its answer is a five-year compliance window from 2028 to 2032. For 2035, it proposes a 90 per cent CO2 reduction target, with renewable fuels and green steel counting towards the rest.
For LCVs, Toyota wants separate targets of 35 per cent by 2030 and 80 per cent by 2035, with five-year averaging. It also wants vehicles running only on eligible renewable fuels (VEEF) classed as zero emission under one EU definition. Finally, it asks for regular reviews if demand or infrastructure falls behind.
A Matching Plan for the UK
Toyota welcomes the UK’s ZEV review but wants a gentler path to 2030. It proposes capping the required ZEV share at 50 per cent for cars and 40 per cent for LCVs, with flexibilities.
It also asks the Government to set out the 2035 framework now and extend compliance flexibilities to that date. Other requests include a five-year approach like the EU’s, a UK equivalent of VEEF and a finished mandate revision in 2027.
Reading Between the Lines
Arguably, this is a carmaker lobbying for rules that suit how it builds and sells cars. Still, Toyota says it fully supports Europe’s climate goals, and it isn’t asking legislators to drop their 2035 ambition.
Instead, it is asking for more time, more technology options and a broader definition of what counts as European-made. Toyota argues that investment decisions made now will shape production to 2035 and beyond. That means the rules written in the coming months will affect which cars reach showrooms for the next decade.
