Electric car news
French motorists are facing an unprecedented situation on the automobile market. Manufacturers are orchestrating a calculated increase in the prices of thermal vehicles, creating a strategic price gap with their electric counterparts. This maneuver takes place in a tense regulatory context, where environmental objectives are becoming increasingly restrictive.
The challenge of 2025 emissions standards
The European automotive industry faces a real headache: achieving 20% market share for electric cars by 2025, while they currently only represent 13% of sales. The stakes are colossal, with financial penalties that could reach 15 billion euros for manufacturers not meeting these objectives.
The main market players, such as Renault, Stellantis and Volkswagen, have already initiated this pricing strategy. Peugeot notably applied an increase in 500 euros on its thermal models, while Renault has opted for an increase in 300 euros.
A multi-faceted commercial strategy
This pricing policy pursues several objectives:
- Artificially rebalancing the attractiveness of electric vehicles
- Compensate for the gradual reduction in government aid
- Build up a financial reserve for future promotions on electric models
- Anticipate regulatory developments and avoid fines
Beatrix Keim, expert from the Center for Automotive Research, analyzes: “This pricing strategy aims to redirect demand towards electricity to achieve the CO2 quotas imposed by the European Union.”
The risks of a risky bet
This approach is not without risk for the automotive industry. Sources within the sector warn of the potential negative consequences: drop in thermal production volumes without guarantee of a shift to electricity, impact on equipment manufacturers and destabilization of the traditional value chain.
Alternative solutions and future prospects
To get around these constraints, manufacturers are developing alternative strategies such as “emissions pools”. This system allows brands ahead of their objectives to sell their excess CO2 credits to other manufacturers, thus creating a form of industrial solidarity in the face of environmental challenges.
Consumers find themselves at the heart of this major transformation of the automobile market. The rise in prices of thermal vehicles, combined with the gradual decline in the cost of batteries and economies of scale in the production of electric vehicles, is expected to gradually change purchasing behavior in the coming years.
This profound change in the automobile market represents a historic turning point in our relationship to mobility, where environmental considerations take precedence over traditional consumption habits.
Written by Philippe Moureau
Forty-year-old passionate about electric cars. I am interested in the energy transition and the fight against greenhouse gas emissions. I am a true electric car enthusiast and environmental advocate.
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