Toyota Motor Europe has urged changes to European Union automotive policy measures, calling for an inclusive and technology-neutral approach to support competitiveness and decarbonisation.
At an event in Brussels, Belgium, Yoshihiro Nakata, president and CEO of Toyota Motor Europe, set out the company’s view of a “competitive”, “resilient” and “decarbonised” European automotive industry, with a focus on partnerships, technological diversity and what he described as “regulatory pragmatism”.
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Nakata said Toyota has a substantial industrial presence in Europe.
In 2025, Toyota’s European manufacturing base accounted for 877,000 cars and light commercial vehicles, and 80% of vehicles sold in the region were manufactured locally.
Nakata added: “We believe that selected critical partners — for instance the UK, Japan, and Turkiye — should be recognised in the same way as ‘Made in EU’ under the Industrial Accelerator Act. Europe’s resilience is built not only on local production, but also on working with partners to create regional scale and shared success. By working together we are all stronger.”
Toyota runs eight plants in Europe, while vehicles are also produced by partners at five other European sites. The company directly employs 25,000 people and works with more than 450 suppliers.
Restating the group’s commitment to the region, Nakata said Toyota Motor Europe “can be regarded as a European OEM”, reflecting Toyota’s principle “to build where we sell and source where we build”.
Nakata said Toyota supports the aims of the EU’s Industrial Accelerator Act, but warned that leaving out international automotive partners, including Japan, the UK and Turkiye, could have a negative effect on investment, employment and technology transfer, and could reduce the scale required for global competitiveness.
He added: “We believe that selected critical partners — for instance the UK, Japan, and Turkiye — should be recognised in the same way as ‘Made in EU’ under the Industrial Accelerator Act. Europe’s resilience is built not only on local production, but also on working with partners to create regional scale and shared success. By working together we are all stronger.”
He also said that “delays and restrictive eligibility criteria risk undermining the EU’s position, while competing regions continue to advance”.
On the EU’s Automotive Package proposal, Toyota called for a technology-neutral, multi-pathway approach to decarbonisation.
Nakata said this should include the continued deployment of battery electric vehicles (BEVs) and fuel cell electric vehicles (FCEVs), as well as recognition of plug-in hybrid vehicles (PHEVs) as a strategic technology.
Toyota also called for broader use of renewable fuels for new vehicles and greater flexibility in the CO2 reduction pathway to reflect uncertain consumer demand.
According to Nakata, renewable fuels are an important contributor to decarbonisation, adding that they can significantly reduce carbon emissions, support European technological expertise and strengthen energy resilience against fossil fuel supply challenges.
The company also called for strong implementation of the Alternative Fuels Infrastructure Regulation (AFIR), particularly to support the rollout of hydrogen refuelling infrastructure for heavy-duty transport.
