The Automotive Industry: Electrification, Trade Policy Initiatives and the Industrial Accelerator Act

NEWSLETTER Q2 2026

The second quarter of 2026 has been characterised by, amongst other things, continued electrification, geopolitical uncertainty and trade policy initiatives. In addition, the European Commission has presented a proposal for the Industrial Accelerator Act, which is of particular relevance to the automotive industry.

Below, we outline the quarter’s most significant events.

Trade policy and Industrial Competitiveness

During the quarter, an agreement was reached on the so-called Turnberry Agreement between the EU and the US. For the automotive industry, the agreement means that tariffs on US industrial goods will be abolished, which may have consequences for the cost structure of European manufacturers and suppliers, as well as for the competitive conditions in the market. Overall, the agreement contributes to short-term stability in transatlantic trade relations, but its temporary nature and built-in safeguard mechanisms mean that long-term developments will continue to be shaped by mutual trade policy choices.

Volkswagen, Stellantis and Renault, which together account for around 60 per cent of Europe’s vehicle production, have called for clearer ‘Made in Europe’ rules and stronger incentives for local production. In a joint letter to Members of the European Parliament, the car manufacturers are calling for around 70 per cent of the value of a vehicle sold within the EU to originate from European value chains.

Electrification and Infrastructure

Electrification continued to dominate developments in the automotive industry during the quarter. Sharply rising fuel prices as a result of the war in Iran contributed to a marked increase in demand for electric cars in Europe. According to ACEA (the European Automobile Manufacturers’ Association), the share of electric cars in new car registrations in the EU and the UK increased, whilst the combined share of petrol and diesel cars in new car registrations continued to decline.

The expansion of the infrastructure continued at a rapid pace. Milence, the joint charging company between Daimler Truck, the Traton Group and the Volvo Group, secured €120 million in new funding for the expansion of its charging network for heavy-duty vehicles. Scania signed a five-year exclusivity agreement with the chemicals company Wibax for the supply of 105 electric lorries, along with associated services and solutions. The deal, which covers Wibax’s operations in Sweden and Finland, is reportedly the largest single deal for electric lorries in the bulk transport sector in the EU, according to the companies.

Autonomous Driving and Regulatory Issues

Developments in autonomous driving took several significant steps forward during the quarter. Tesla received regulatory approval for Full Self-Driving Supervised in the Netherlands and, subsequently, in Belgium as well. These approvals are national in scope and relate to a driver-supervised system in which the driver retains responsibility for the operation of the vehicle. Furthermore, a Reuters investigation has revealed that Tesla is alleged to have used potentially misleading safety statistics in its communications with European authorities, including the Swedish Transport Agency.

Other operators also faced challenges. During the quarter, Waymo recalled around 3,800 robotaxis in the US following several high-profile incidents, whilst Swedish public transport operators – including representatives from Västtrafik and Skånetrafiken – have urged legislators to introduce clearer rules for the future commercial use of autonomous taxi services.

Industrial Transformation and New Markets

A clear trend during the quarter was the automotive industry’s increased presence in the defence sector. The Renault Group and Thales jointly unveiled the AI-supported military vehicle 4 TROOP, whilst General Motors has entered into a strategic partnership with Lockheed Martin with the aim, amongst other things, of increasing manufacturing capacity for ammunition and defence equipment. 

For Swedish companies, the quarter was eventful. Volvo Cars reported an operating profit of SEK 1.6 billion for the first quarter of the year, and the Volvo Group reached a $197 million settlement with the California Environmental Protection Agency following allegations that it had breached emissions regulations for heavy-duty engines. Einride was listed on the Nasdaq stock exchange in New York on 10 June and has expanded its presence in the US through a multi-year partnership with Amazon.

Industrial Accelerator Act

On 4 March 2026, the European Commission presented the draft Industrial Accelerator Act. The regulation aims to strengthen the competitiveness and resilience of industry and contribute to the EU’s climate targets. The proposal includes, amongst other things, simplified authorisation processes, requirements for Union origin in public procurement, rules on foreign direct investment in strategic sectors, and industrial acceleration zones. The regulation is particularly relevant to the automotive industry, as electric vehicles, batteries and critical raw materials are identified as priority sectors. The proposal will undergo the ordinary legislative procedure and is expected to enter into force in 2027 at the earliest.

MAQS Advokatbyrå will monitor the ongoing legislative work on the Industrial Accelerator Act and will provide a more detailed analysis of the regulation’s implications for the automotive industry.

Summary

The second quarter of 2026 reveals a rapidly changing automotive industry. Electrification, autonomous mobility and geopolitical tensions continue to shape the market, whilst regulatory initiatives and changes in trade policy are creating both opportunities and challenges for industry players.

MAQS Advokatbyrå closely monitors developments in the automotive industry and regularly assists clients with matters relating to the sector.

MAQS Automotive is a Proud Partner of Dagens Industri's Stora Mobilitetsdagen

During the event, our automotive experts Anton Olsson and Junli Shu will join key industry players on stage to discuss the road to autonomous vehicles and how electrification and shared mobility are reshaping both business models and urban planning alike. The event will also explore the industry's transition, infrastructure challenges ahead, and how innovative solutions can improve efficiency while reduce climate impact.

Date & venue: 13 October | Sergel Hub | Stockholm
Read about the full agenda here!
 

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