In 2025, gasoline and diesel cars will see their prices increase in the face of new CAFE standards.
Explosion in prices of gasoline and diesel cars – CREDIT: VarActu
In 2025, owners of thermal cars could face a significant increase in prices. This increase would be the direct consequence of the strengthening of the European standard CAFE (Corporate Average Fuel Economy), which aims to reduce CO2 emissions from new vehicles. This turning point marks a key step in the transition to electric, but it could weigh heavily on the wallets of consumers attached to gasoline and diesel engines.
The CAFE standard, a challenge for manufacturers
From 2025, the CO2 emissions threshold for new vehicles will be lowered to 81 g/kmcompared to 95 g/km currently. The long-term objective is to achieve 50 g/km d’ici 2030. This regulation pushes manufacturers to accelerate the production and sale of electric vehicles (BEV), which should represent 25% of sales from next year.
Manufacturers who fail to achieve these objectives are exposed to colossal financial penalties, which could reach 15 billion euros. These constraints could lead to a reduction in the production of thermal vehicles or to a passing on of fines to consumers.
An inevitable increase in the prices of thermal engines
To comply with the standard, manufacturers have few levers. Many are considering limiting or stopping the production of certain expensive thermal models to bring up to standard. Those who maintain these models will likely have to raise their prices to offset the additional costs of fines and technical adjustments.
The British market, where a similar transition is underway, is already showing a trend: the prices of thermal vehicles are increasing to offer more competitiveness to electric models. In France, this dynamic risks increasing, particularly with a probable tightening of the ecological penalty in 2025.
Opportunity for electric cars?
Conversely, the electric vehicle market could develop thanks to an expanded offering and more competitive prices. However, the lack of infrastructure in certain European countries remains a major obstacle. In France, a leading country with Germany in electrification, this transition will also depend on incentive policies, such as maintaining or adapting ecological bonuses.
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