Europe’s automotive industry is at a crossroads. With global rivals racing ahead in automated and autonomous transport, the EU’s new Automotive Action Plan aims to close the gap, turning policy ambition into real-world deployment.
Europe has a long and proud history as one of the world’s leading automotive manufacturing regions, home to globally recognized brands and cutting-edge engineering. Collectively, the automotive industry accounts for about €1 trillion in GDP and provides roughly 13 million jobs across the continent. But as the industry undergoes its most significant transformation in decades, driven by automation and electrification, autonomous transport stands out as a critical innovation that will define Europe’s competitiveness.
Other regions are accelerating investment and deployment of autonomous transport. For example, in the United States, a bill has been introduced in Congress (AMERICA DRIVES Act) that would enable Level 4 or Level 5 autonomous trucks to operate on interstate corridors without an onboard or remote safety driver, if enacted. Similarly, China has issued national guidelines for pilot programs that permit Level 3 and Level 4 automated vehicles on public roads and expanded approvals for Level 3 road testing for multiple OEMs.
In response, the European Commission’s Automotive Action Plan positions automated and autonomous mobility as a cornerstone of the green and digital transition. With its dense industrial base and interconnected economies, Europe is an ideal setting for hub-to‑hub autonomous trucking, and now is the time to capitalize on it.
The Automotive Action Plan is the EU’s blueprint for transforming its automotive sector to remain competitive in a rapidly changing global market. Built around five pillars – innovation & digitalization; clean mobility; competitiveness & supply chain resilience; skills & social dimension; level playing field & business environment – it targets everything from emissions and battery production to workforce retraining and fair trade.
For autonomous freight, the plan commits to at least three largescale cross border testbeds starting in 2026, harmonized testing procedures by early 2026, and standardized safety requirements. It also foresees expanded vehicle type-approvals: unlimited series approvals for automated parking from 2025, with additional use cases (including hub‑to‑hub freight) following in 2026, alongside aligned national laws to enable smooth cross border operation. In short, it is both a roadmap for the sector’s green and digital transition and a concrete plan for bringing autonomous transport from pilot to scale across Europe.
Almost every EU Member State has introduced some form of rules on automated driving, ranging from test permits and safety-driver requirements to liability and data-logging obligations. However, these national approaches differ significantly – for example, in whether human supervision is required, how liability is assigned, and where vehicles may operate – creating complexity for cross-border deployment.
But at least, Europe is not starting from scratch. The EU is, as of January 2021, committed to UN ECE R157 provisions concerning technical and safety regulation for automated lane keeping systems. Since July 2022, new EU vehicle-safety regulations have been in force that explicitly cover automated driving systems (ADS). Through the General Safety Regulation (GSR), the EU has defined use cases such as hub-to-hub freight and automated valet parking and set demanding requirements for safety management, cybersecurity, software updates, in-service monitoring, incident reporting, and clear roles for on-board or remote operators.
The GSR is built on two pillars: performance requirements, which define the essential functionalities an automated vehicle must have to qualify for EU type-approval, and compliance assessment procedures, which cover evaluation, auditing, and testing of automated driving systems. Key obligations include detailed documentation for type-approval, in-service monitoring and reporting, defined roles for on-board and remote operators, software identification, and requirements for dual-mode vehicles.
Together with the EU Artificial Intelligence Act, which addresses ethical and cybersecurity aspects of AI, this framework reflects a European approach that prioritizes safety and transparency – a strength, but also a potential limitation if deployment rules remain fragmented at national level.
Currently, Level 3 operations and certain Level 4 operations are allowed under controlled conditions. However, EU type-approval is not a permission to operate on public roads. Under EU Vehicle Type-Approval laws, approval in one member state is valid EU-wide for placing vehicles on the market and registration, but operational traffic rules remain national. That’s why deployment conditions still vary widely across the EU.
Some member states are moving faster. Germany went a step further with its 2021 Act on Autonomous Driving, followed by a detailed ordinance in 2022. It permits Level 4 autonomous vehicles to operate without a driver on board in defined areas, overseen by a remote technical supervisor, and supported by stringent safety case‑ and data‑logging requirements.
Sweden has also put in place a robust testing regime. Public road tests are permitted with a human driver either in the vehicle or supervising remotely, but always able to assume control at any time. Permits are granted to responsible parties who must demonstrate traffic safety and full compliance with safety obligations.
Yet even with this progress, significant hurdles remain. The EU’s approval process is harmonized, but deployment laws remain national, and many are still focused on trials rather than commercial operation. Without aligned rules on permits, oversight, and liability, Europe risks a patchwork that slows scaling.
Currently, deploying a Level 4 autonomous truck in Europe means navigating a maze of national rules, safety documentation, and traffic codes that differ from country to country and sometimes region to region. There is also a limit on how many autonomous vehicles can legally be put on the road under the EU’s small series production scheme: up to 1,500 vehicles per vehicle type per year at EU level. While this may be sufficient for testing, it isn’t enough to support real-world logistics or investment in scaled production; hence the Action Plan’s move toward unlimited series approvals as new use cases mature.
The MODI project (Mobility Digitalization Initiative) is one example of how Europe is beginning to address these issues. As a cross border EU research initiative, MODI is piloting autonomous operations between Rotterdam and Oslo, aiming to demonstrate potential use cases and inform future infrastructure and policy. While still in its early stages, MODI contributes valuable insight into how regulation and logistics can align across borders.
To its credit, the European Commission has acknowledged the importance of autonomy in its industrial and transport strategies. The Automotive Action Plan highlights a green and digital transformation, identifying autonomous solutions as key drivers in achieving these goals.
But policy intent has not yet translated into action. There is still a significant gap between ambition and execution. Regulatory frameworks must evolve to allow real-world deployment at scale. This means not just updating permit systems and reducing unnecessary administrative friction but taking targeted steps.
For instance, there should be an EU-wide operational permit for autonomous freight. This would function like a vehicle-type approval, but for operations. A single authorization issued in one member state that allows Level 4 hub-to-hub freight to run across all participating countries. This would replace the current patchwork of national operations permits and remove the “border handover problem”.
We should work toward designated routes operating with shared rules, infrastructure, and digital systems. These would function as semi‑confined environments stretched across thousands of kilometers and multiple countries. The alternative is a system where autonomous trucks have to stop at every border, reconfigure their software, or even hand over control. That defeats the purpose. Instead, Europe should leverage its single market and policy coordination tools to create legally and digitally interoperable freight lanes. If done well, these could serve as the backbone of scalable, pan-European autonomous logistics.
Trust in new technologies doesn’t come from presentations or paperwork. It grows through real-world experience, transparency, and consistent performance over time. In the United States, Volvo Autonomous Solutions has begun highway operations in Texas using the purpose-built Volvo VNL Autonomous, with safety drivers on board.
Similarly, as demonstrated by our successful operation at Brønnøy in Norway, autonomous trucks have been transporting limestone since 2018 and have operated without safety drivers since 2023. With each successfully hauled load, and now well over a million tonnes transported autonomously, we are proving the capability of this technology in the real world.
People trust what they can see, experience, and understand. That’s why early deployments, whether in quarries or on designated corridors, are so important. They help normalize the presence of autonomous vehicles and build public confidence over time.
Collaboration is already underway, but the pace must increase. At Volvo, we actively participate in UN and EU‑level working groups and collaborate with organizations like Mobility Sweden to ensure industry insights inform regulatory development.
At Volvo Autonomous Solutions, we believe autonomous transport is not only possible in Europe – it’s essential. It can help solve structural challenges such as driver shortages, improve safety, reduce emissions, and streamline logistics. Proper regulation is Europe’s opportunity to shape the next generation of automotive innovation. By balancing rigor with real-world feasibility, Europe can build a smarter, safer, and more competitive freight system that meets the demands of the future.