the annoying European measures

Electric car news

The European automobile market is going through a pivotal period. Historical manufacturers face a major challenge: massively selling electric cars to avoid colossal financial penalties. This unprecedented situation is disrupting their pricing and commercial strategies.

Europe imposes drastic CO2 targets for 2025

January 1, 2025 will mark a decisive turning point with the entry into force of new European emissions standards. Manufacturers will have to achieve 20% electric sales in their commercial mix. An ambitious goal when we know that only 13% of new vehicles sold in 2023 were electric.

The pressure is considerable because the planned fines are dizzying. Bloomberg analysts estimate that some manufacturers risk up to 15 billion euros in penalties. BMW and Mercedes appear well positioned to achieve their targets, but Volkswagen, Stellantis and Renault are struggling.

Bold pricing strategies

Faced with this threat, manufacturers are adopting a unique approach:

• Increase in prices of thermal models 300 to 500 euros
• Significant drop in prices for electric vehicles
• Maintaining prices on hybrid versions

Volkswagen has notably reached a symbolic milestone by offering its ID.3 below the bar. 30,000 euros in Germany. Renault increases the price of its petrol Clio by 300 euros while Peugeot applies an increase of up to 500 euros on its thermal models.

The challenges of the electric transition

This strategy carries major risks for the automobile industry. The increase in the cost of thermal vehicles could lead to an overall drop in sales, impacting the entire value chain. Traditional equipment manufacturers will be particularly affected, although new opportunities emerge for suppliers specializing in electrical components.

The Chinese threat intensifies

European manufacturers also face fierce competition from Chinese brands, which are entering the market with very competitive electric models. This additional pressure results in drastic measures: Volkswagen is launching a vast savings plan, while Stellantis is going through a period of turbulence with the hasty departure of its CEO Carlos Tavares.

Towards a new automotive era

The 2035 horizon set by the European Union for the end of sales of new thermal vehicles is accelerating this transformation. The intermediate objectives are clear:

Manufacturers are banking on technological innovation and cost optimization to make electric cars more accessible. Tesla, for its part, is taking advantage of this situation by offering its carbon credits to manufacturers in difficulty, thus creating a new source of income.

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