📊Executive Summary

The European Commission has softened its plan for a complete ban on internal combustion engines by 2035, reducing the target for emissions to 90%. This decision, welcomed by German manufacturers, raises concerns about increased Chinese dominance in the automotive sector and presents challenges for the Macedonian automotive parts industry. The revised plan allows gasoline, diesel, and hybrid vehicles to remain on the market post-2035, provided they meet strict environmental standards. This shift could lead to reduced investments in electric vehicle innovation by European manufacturers, while Chinese companies like BYD and Geely continue to advance in battery technology. For Macedonia, which is integrated into the European automotive supply chain, this policy change signals a prolonged adaptation period, emphasizing the need for a balanced approach between industrial survival and environmental responsibility....