How the Dutch Supply Industry Powers Innovation and Competitiveness, 

This article was produced for the RAI Automotive Industry Magazine, highlighting the Dutch automotive industry's crucial role in shaping Europe’s mobility future. As part of our commitment to fostering innovation, Benjamin Krieger, Secretary General of CLEPA, will be one of our esteemed speakers at Drive Forward 2025—the leading European conference on automotive mobility advancements. 

CLEPA is the European association of automotive suppliers. Based in Brussels, the organisation closely follows and influences EU regulation and UN harmonisation rules shaping the future of mobility, while it raises awareness about the industry's key contributions. With 120 members across Europe designing a wide range of components, parts and systems, and 12 national associations, including RAI, CLEPA's membership actively advances sustainability, safety and comfort of vehicles on our roads.  

CLEPA leverages a series of events to bring a wider network of stakeholders together to highlight the vision and priorities of European suppliers, defined and agreed by expert working groups and taskforces. A prime example of event is the CLEPA Innovation Awards, offering organisations across the automotive supply industry, from SMEs and start-ups to multinational companies, a top platform to showcase their latest green and digital technologies in front of EU, industry and media representatives at the Awards Ceremony held in Brussels each year.  

How can the EU boost the auto industry’s competitiveness? 

As many other sectors today, the automotive industry faces challenges caused by the economic slowdown following the COVID-19 pandemic and ensuing cost-of-living/energy crises, but also increased competition. There is a concerning trend of growing job loss and a shift in investments away from the supply industry in EU countries. Our report, the CLEPA Data Digest, shows that while other regions see more positive projections, European suppliers experienced job losses in the first 60 days of 2024 equal to the previous year’s total.  

“Europe’s industrial and competitiveness policies must now be aimed at nurturing a fair and competitive market, delivering on the EU’s transition and growth targets.  

Europe will need further integration and a fully functional Single Market, with an innovation-friendly legal framework across European borders. Further collaboration also includes public funding, which will play a crucial role for the development of green and digital innovations. R&I programs such as Horizon Europe allow collaboration on precompetitive innovation, and by incorporating transparent eligibility criteria and award procedures, they can ensure predictability and maintain a long-term perspective for Europe's innovative drive. 

Access to the right skills will be essential for future competitiveness in Europe, and there should be a concerted effort to aid with the reskilling of workers as an integral component of the overall transformation of businesses, workforces and production facilities. We welcome EU programmes under the ‘Pact for Skills’ which enable large-scale partnerships in the region.  

What is the Dutch supply industry’s contribution at European level? (production levels, employment, etc) 

In terms of employment, the Dutch supply industry is one of the smaller players in the EU, employing roughly 7,000 in comparison to 1.7 million workers across the EU. However, the sector plays a crucial and outsized role in advanced electronics, the development of autonomous and connected driving functions. This is highlighted by the incredibly high value add per worker, which we estimate to be roughly 3.5 times higher than the EU average and 2.5 times higher than Germany. The country benefits from a strong semiconductor cluster in the area around Eindhoven and has built a position in cutting edge innovation thanks to leading technical universities in Eindhoven and Delft, as well as the automotive campus in Helmond. “ 

“There is still untapped potential in electrification, where the Netherlands could benefit from its strong chemical industry and competence in material innovation as well as its thriving ecosystem of battery startups. 

How do EU climate policy objectives impact the automotive industry’s future?  

The automotive industry needs to have clear regulations so it can fully invest in the green transition and develop the needed technological solutions. Companies must be able to increase their profitability by exploring all the available avenues that could lead to smarter and more efficient road transport, under a technology-neutral approach.    

CLEPA recently welcomed the Commission's update to the Net-Zero Industry Act (NZIA), which recognises hydrogen storage systems, electric propulsion, and other hydrogen technologies as net-zero technologies. Meeting the EU’s ambitious transition goals will require such initiatives under a clear regulatory framework that encourages more free innovation for future mobility.  

Furthermore, what is key for climate regulations is the consideration of all emissions associated with a vehicle's production and use - a ‘lifecycle approach’, that fairly represents ecological impact. Suppliers are increasingly designing technologies for maximising the efficiency of resources and energy use related to a vehicle’s life cycle, which will play a pivotal role for achieving more sustainable mobility. 

What’s needed for suppliers in the EU’s digital transition?   

The software-defined vehicle, alongside electrification, is a primary catalyst for industry transformation, offering exciting opportunities. To position the EU as a digital mobility leader, key regulations are essential, encompassing digital infrastructure, communication standards, type approval for autonomous vehicles, virtual testing, cybersecurity, and an AI framework.  European R&I funding plays a crucial role in advancing these technologies. A noteworthy regulatory focus on in-vehicle data access rules, if appropriately handled, can unlock tremendous untapped potential for new consumer services.   

This is an interview from the RAI Automotive Industry Magazine about the Dutch automotive industry. Want to read more? Visit: Magazine Dutch Automotive Industry | RAI Vereniging