EU Pushes 70% Local EV Parts Rule: What It Means for Hyundai Motor Group

The EU is discussing the Industrial Acceleration Act, which would require over 70% of EV parts to be sourced and assembled within the region, or face losing subsidies and procurement benefits. The bill could take effect as early as 2028. Hyundai and Kia, with plants in Czechia and Slovakia, are better positioned on assembly but face challenges localizing batteries and drivetrains.

• EU proposes requiring over 70% of EV parts from the region or losing subsidies
• The IAA bill could take effect as early as 2028
• Hyundai and Kia build about 45% of EU-regulated vehicles locally
• Hyundai and Kia's EU market share fell to 7.5% in August; Chinese brands hit 9.3%