Europe's car industry could return to producing 16.8 million cars a year, equalling its post-2008 crisis peak, if the European Union maintains its 2035 clean cars target and implements policies to support the transition, a study published by campaign group Transport & Environment showed on Tuesday.

Conversely, deploying no industrial strategy and going back on the 2035 target that all new cars and vans sold in the EU no longer emit carbon dioxide could result in a loss of 1 million auto industry jobs and two-thirds of planned battery investments, T&E said in a statement.