The European automotive industry is in the midst of substantial transformations, with a focus on electric and software-defined vehicles to achieve sustainable mobility. In this evolution, hydrogen and e-fuels are key solutions being pursued. While the industry welcomes new competitors for driving innovation, there is a call for fair competition to protect the ecosystem of suppliers that contribute significantly to European economies and jobs. Geopolitical shifts and global crises have highlighted the need for regulations promoting fair competition and retaining local added value, similar to measures seen in other regions. The emphasis is on the European Union to establish clear targets for regional content within the automotive industry, ensuring a balance between competitiveness and sustainability. The industry urges a shift in focus towards the entire value chain, emphasizing the importance of a clear industrial policy to drive innovation and job creation. Ultimately, the goal is to make the transition beneficial for the European automotive industry while maintaining a sustainable and competitive global presence.