Overview of the Automotive Industry Support Package in Selected Jurisdictions

The Covid‑19 crisis is having a major impact on the automotive industry at a time of declining sales coupled with the challenges posed by significant regulatory hurdles relating to tightening emissions reductions standards and clear regulatory support of a transition to electric and other alternative fuels powered vehicles.

In response to the impact of this crisis on the sector, many states have implemented ambitious programmes to sustain OEMs [and suppliers]. We have prepared a summary of the main governmental support measures being provided to the automotive sector in China, France, Germany, Italy, Japan, Netherlands, Spain, and the United Kingdom.

On the whole, the support packages seek to achieve two objectives:

1. Support consumer demand with a view to promoting the acquisition of new vehicles. Subsidy schemes in particular have tended to focus on encouraging uptake of electric or cleaner vehicles; and

2. Acceleration of the transition toward green mobility by implementing ambitious measures to reform the car industry. To achieve this, governments are encouraging R&D through either direct funding or tax relief programmes.

Such measures are likely to create opportunities for automotive, energy and infrastructure companies. This will be the case especially for those that are willing to be “first movers” at the beginning of the transition.

Note: This article was originally published by Linklaters.