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Ursula von der Leyen, President of the European Commission, delivered a speech today at the Italian Tech Week in Turin, Italy, during which she called for a major European push to develop and deploy self-driving cars, citing how important it is to catch up with the United States and China in this technology.
Chinese EV manufacturers are already facing regulatory pressure in Europe, including a countervailing duty and the Foreign Subsidies Regulation (FSR), which has negatively impacted over 70% of them.
Ursula von der Leyen wants the EU to become AI-first
Ursula von der Leyen believes artificial intelligence could help revive the region’s struggling automotive sector and also improve road safety.
During her speech, she urged the European Union to adopt an “AI first” strategy across strategic industries, with a focus on mobility.
She cited how self-driving cars have become a reality on the streets of America and China and does not see why Europe is being left behind. To her, “AI first” also means “safety first”.
Her remarks come amid Brussels’ attempt to promote industrial competitiveness, even as local automakers struggle to keep up with foreign technology development, particularly from China and the United States.
Von der Leyen suggested banding together to form a network of European cities to pilot autonomous vehicles, and claimed up to 60 Italian mayors had already expressed interest.
The EU chief has also vowed the bloc will support developing vehicles “made in Europe, and made for European streets”.
Europe’s automotive industry is currently undergoing rapid transformation amid pressure to decarbonize and digitize, and von der Leyen thinks AI could play a significant role in reducing congestion, linking remote areas to public transport, and preserving jobs.
“The future of cars – and the cars of the future – must be made in Europe,” she said.
China EV brands set sights on Europe
Chinese EV manufacturers face significant regulatory risks in Europe, including a 17.4% EU countervailing duty and the Foreign Subsidies Regulation (FSR), which has negatively impacted over 70% of these firms.
However, they have refused to be daunted by the hostile tariffs and have been leveraging strategies like plug-in hybrid electric vehicles (PHEVs) and localized production.
It has been effective because, as of June 2025, Chinese EV brands had captured 10% of the European EV market with BYD’s sales tripling to 13,503 units by July 2025, surpassing Tesla for the first time and highlighting the rapid growth and competitive edge of Chinese EV brands.
The shift towards PHEVs has worked so well for them because it aligns with the European consumer’s preferences for flexible charging options and long-distance travel, maintaining a stable market share amid tariff challenges.
There is also the issue of geopolitical tensions, which have resulted in fragmented EU member states’ policies. As things stand, the future of Chinese investments in Europe is uncertain, and this has affected the EV sector.
In 2024, Greenfield projects accounted for £4.9 billion. However, the value of newly announced EV projects has declined significantly, with three major battery projects getting shelved.
Analysts have warned that further tariffs — potentially exceeding 20% — could also affect export volumes.
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